MCGI HYDROGEN WATER SCAM DEEPENS — NEW TESTIMONIES REVEAL MISLABELING, LABOR EXPLOITATION, TAX EVASION AND MASSIVE UNDECLARED PROFITS

Evidence now points to a coordinated money-making operation built on overpricing, misrepresentation and unpaid volunteer labor

New testimonies emerging after our initial report expose an even broader pattern of wrongdoing behind the MCGI Hydrogen Water Scam. What began as a misleading “healing water” scheme now shows signs of labor exploitation, mislabeling, tax evasion and systematic diversion of profits away from local chapters and into private hands.

MCGI Hydrogen Water (HW) promoted as "cure-all" drink in MCGI Worship Services

Jacky, a former student from La Verdad College, an MCGI-affiliated school recalled that bottled water labeled “Marcid Blue” was sold for ₱20 before the pandemic. When face-to-face classes resumed, the same water reappeared now rebranded as “hydrogen water,” sold at ₱60 with labels removed and some caps already opened indicating poor manufacturing quality. The student described the healing claims as “absurd.” Another student explained the missing labels were removed to evade the FDA ban issued in September 2024.

FDA advises the public against consuming MCGI Hydrogen Water (HW)

This aligns with earlier findings identifying Marcid Blue, owned by Don Capulong, brother-in-law of MCGI leader Daniel Razon, as the central supplier of the product.

THE MILLION-PESO QUESTION: WHERE DOES THE MONEY GO?

A typical lokal (MCGI Chapter) selling 2,000 bottles a month at ₱50 net profit each generates ₱100,000 monthly profit enough to pay rent, electricity and maintenance. Yet many lokals are behind on rent.

Insiders claim this is because the profits never reach lokal accounts. Instead, funds are allegedly remitted directly to the personal accounts of Capulong and Razon, turning the Hydrogen Water scheme into a private income stream disguised as a church project.

PRICING THAT DEFIES ETHICS AND ECONOMICS

A $500 hydrogenator can reportedly produce up to 10,000 gallons of infused water per month using electricity as the primary operating cost. With roughly 7.6 bottles produced per gallon, the estimated overhead cost is ₱0.10 per bottle or less.

Despite this, Hydrogen Water is sold at:

• ₱60

• ₱65

• ₱70 in some chapters

Our investigation also uncovered internal cost estimates showing just how cheap each bottle is to produce — and how massive the profit margin is once sold inside MCGI chapters.

COST OF GOODS SOLD PER BOTTLE

• Empty Bottle with Cap (Alibaba): ₱3.25

• Water Filtration: ₱0.65

• Hydrogenation: ₱0.10

• Labor: ₱1.00

Total cost to produce: ₱5.00 per bottle

Selling Price (SRP): ₱60.00

Less cost: ₱5.00

Net Profit per Bottle: ₱55.00

At a conservative estimate of 2,000 bottles sold per lokal per month, that’s:

₱55 profit × 2,000 bottles = ₱110,000 monthly income per lokal.

And yet, despite these massive earnings, lokals remain behind on rent while volunteers are paid only allowances. Barat pa sila magpa-sweldo — even as the profit margins reach levels unheard of in any legitimate water business.

These financial figures expose the Hydrogen Water operation not only as overpriced, but as a highly profitable system built on cheap materials, volunteer labor and extreme markups hidden behind religious authority.

The resulting markup exceeds 10,000%, a staggering profit margin far beyond what could be justified, especially for a religious organization promoting charity and compassion.

UNRECEIPTED SALES = POSSIBLE TAX EVASION

Multiple witnesses report that these overpriced bottles are sold without official receipts, especially during worship services and major gatherings.

Unreceipted transactions mean:

• no declared sales

• no recorded income

• no remittances to BIR

• no transparency on where funds go

This opens serious questions about tax evasion, as millions of pesos in monthly sales may be circulating through private hands with zero official documentation.

EXPLOITATION OF MCGI YOUTH GROUPS

The operation is also powered by unpaid volunteer labor from MCGI youth groups GCOS. These young members are assigned to:

• refill

• repack

• transport

• handle logistics

• sell during worship services

They receive only small allowances, despite delivering the manpower behind an extremely profitable business. This raises serious ethical concerns about using minors and young volunteers for commercial gain.

A CONSISTENT PATTERN OF DECEPTION

Taken together, the emerging evidence shows:

• mislabeling to evade the FDA ban

• overpriced bottles with extreme profit margins

• unreceipted sales suggesting tax evasion

• youth volunteers used as unpaid labor

• profits allegedly funneled to private accounts

• lokals left struggling despite massive sales

• exaggerated healing claims fed to members

• ordinary purified water passed off as a miracle product

These findings expose the Hydrogen Water racket as a coordinated system of financial exploitation, hidden behind religious authority and the rhetoric of charity.

QUESTIONS MCGI MUST FACE

If the overhead is ₱0.10 per bottle, why charge ₱60–₱70?Why are youth volunteers doing unpaid commercial labor? Why do lokals remain behind on rent despite large sales? Why are transactions unreceipted? Why were labels removed only after the FDA ban? Why are the profits reportedly routed to private accounts? And can anyone still call this “Pag-ibig ni Kristo”?

THE CASE CONTINUES TO GROW

All new testimonies including mislabeling, labor issues and tax-related concerns, strengthen the ongoing FDA complaint (DocTrack No. 20251113155114). The public may continue monitoring the case through the FDA’s DocTrack portal.

Acknowledgement receipt from the Philippine FDA confirming the registration of a complaint against MCGI Hydrogen Water, highlighting consumer concerns via the MCGIExiters Reddit community.

We are still awaiting official statements from Marcid Blue and MCGI leadership.

This investigation is far from over and the picture only grows darker.