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House Links Paolo Duterte to P6 Billion Drug Case, POGOs

A witness linked Davao City Rep. Paolo Duterte; Vice President Sara Duterte’s husband, Manases “Mans” Carpio; and Michael Yang to large-scale drug shipments. 

Paolo Duterte, Michael Yang, Davao City Representative, POGOs,

The Philippine House of Representatives' Quad Committee has unveiled a complex network intertwining the illegal drug trade, Philippine offshore gaming operators (POGOs), and alleged extrajudicial killings during former President Rodrigo Duterte's administration. The committee, comprising the Committees on Dangerous Drugs, Public Order and Safety, Human Rights, and Public Accounts, has conducted over 13 hearings to dissect these interrelated issues.


The Tale of Two Shipments


Antipolo City Representative Romeo Acop presented a detailed account of two significant drug shipments smuggled into the Philippines during the height of Duterte's war on drugs. The first incident in 2017 involved P6.4 billion worth of shabu (methamphetamine) concealed in metal cylinders, while the second in 2018 saw P3.4 billion worth of shabu hidden in magnetic lifters. Both shipments passed through the Manila International Container Port without detection.


Testimonies from former Customs personnel Jimmy Guban and businessman Mark Taguba implicated high-profile individuals, including Davao City Representative Paolo “Pulong” Duterte, Vice President Sara Duterte’s husband Manases “Mans” Carpio, and former presidential economic adviser Michael Yang, in facilitating these shipments. 


Taguba alleged that approval from these individuals was necessary for the shipments to proceed. 


Acop emphasized the recurring involvement of these figures. He was quoted as saying in a PNA report: "They allegedly control these shipments. Kung gusto mo madali, lumapit ka sa Davao boys. Yun po ang turo sa kanya [Taguba] (If you wanted things to move smoothly, you just have to approach the Davao boys. That's what was taught to him).


"Pareho pong bilyon-bilyon ang halaga ng shabu na ipinasok... parehong dawit ang mga pangalan nina honorable Paolo Duterte, Atty. Mans Carpio, at Michael Yang (Both shipments were worth billions... and the same names—Paolo Duterte, Mans Carpio, and Michael Yang—were implicated)."


The 'Tara' System and Corruption at the Bureau of Customs


The investigation shed light on the entrenched "tara system," a form of bribery within the Bureau of Customs (BOC) that allowed illicit shipments to bypass inspections. Acop explained that paying PHP1 million could ensure a container avoided X-ray and physical inspections, enabling large drug hauls to enter the country undetected. He stated, "It's grease money, lagay, given to the officials of the Bureau of Customs among others to push them into a more simple assessment of in-bound goods."


Michael Yang's Alleged Involvement in the Drug Trade


The committee revisited intelligence reports by dismissed police colonel Eduardo Acierto, which identified Michael Yang as central to a "complicated and organized network" involved in the illegal drug trade, alongside business partners Allan Lim and Johnson Co. Acierto's diagram depicted Lim as the local source, Yang managing the importation side, and Co as the distributor. Yang's name surfaced in investigations, including his alleged role in the dismantled Dumoy laboratory in Davao City, where six Chinese nationals were killed during a December 2004 raid.


Acop noted Yang's evolution from facilitating precursor chemicals to orchestrating large-scale smuggling operations, stating, "From receiving shipments of precursors from the ports and transporting them, malayo na ang narating ni Michael Yang. He eventually managed to develop contacts in the Bureau of Customs and evolved into a facilitator of shipments of shabu."


Connections to POGOs and Organized Crime


The investigation also uncovered links between Yang and POGOs through entities like DCLA Company Inc., which operates DCLA Plaza shopping mall in Davao City, reported to host activities related to illegal drugs. Another entity, Paili Holdings Corporation, owns Paili Estate, which constructed Clark Majestic World—a site where Chinese nationals were arrested for kidnapping incidents tied to organized crime.


Acop highlighted the broader implications of these connections, questioning the lack of action against Yang despite multiple reports of his involvement in the drug trade. He remarked, "Madami at paulit-ulit na ang lumilitaw na koneksyon ni Michael Yang sa business ng droga pero nakakapagtaka na rin sa gitna ng isang state policy called the war on drugs, where thousands were killed kahit sabi-sabi lang ang basis, wala pa rin nakakagalaw against Michael Yang (Several connections between Michael Yang and the drug trade have repeatedly surfaced, but it is puzzling that in the midst of a state policy called the war on drugs, where thousands were killed on the basis of tattles, Michael Yang remained untouchable)."


Alleged Reward System for Extrajudicial Killings


The committee alleged that the Duterte administration’s war on drugs incentivized extrajudicial killings through a reward system, with rewards ranging from P20,000 to P1 million. This claim was supported by testimonies from former Philippine Charity Sweepstakes Office General Manager Royina Garma and former National Police Commission Commissioner Edilberto Leonardo. Acop described it as "such a strong but perverse incentive to play along with the war on drugs."


Calls for Legislative Reforms


Acop pledged that the committee would leave "no stone unturned" in its investigation and would push for legislative reforms to prevent such abuses from recurring. He stated, "We will continue our inquiry and ensure that we amend our laws to prevent the recurrence of the events we have uncovered."



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