SENATE deputy minority leader Risa Hontiveros yesterday alleged Michael Yang, the economic adviser of former President Rodrigo Duterte, is a “key actor in Chinese intelligence operations” in the Philippines.
Hontiveros, during the last hearing of the Committee on Women on the ills of the Philippine Offshore Gaming Operators (POGO) industry, quoted sources as saying that Yang allegedly “fed” offshore gaming operators until they become “monsters” and get involve in crimes such as human trafficking, money laundering, torture, and espionage, among others.
She said her sources backed their information with a photo of Yang with She Zhijiang, a self-confessed Chinese spy now locked up in an undisclosed facility in Thailand for involvement in illegal gambling activities.
“Pero sino ang bumusog sa halimaw na ito? Mga kaibigan, this photo was given to us by one of our key informants and it further deepens what we already know: Michael Yang is a key actor in intelligence operations here. Michael Yang na sangkot sa Pharmally, and if reports are accurate, sa drug operations dito. Michael Yang na economic adviser ng dating Pangulo – ginatasan na tayo, pinagtaksilan pa (But who fed these monsters? My friends, this photo was given to us by one of our key informants and it further deepens what we already know: Michael Yang is a key actor in intelligence operations here. The same Michael Yang who has involved in the Pharmally [controversy], and if reports are accurate, even in illegal drugs. Michael Yang who is the economic adviser of the former President [Duterte] not only raked in money, but also betrayed us),” she said.
Hontiveros said an investigation conducted by her office showed that POGOs were used for espionage activities, citing She’s records.
She said She’s first “known record” of entry to the Philippines was on December 10, 2011, and was found out in 2014 to be the subject of a court order from China for operating illegal casinos.
“The People’s Protectorate of the Economic and Technological Development Zone of Yantai City presented the charge as follows: She Zhijiang (at-large) established private lottery platforms in the Philippines under the names New Asia, Wanda, Diyuan, and Tang Club with government approval,” Hontiveros said.
“Ang dahilan po ng 2014 niya na kaso ay mga activities sa Pilipinas simula 2011 (The reason for his cases in 2014 was due to his illegal activities in the Philippines since 2011),” she said.
The senator said She was later supposedly recruited in the last quarter of 2016 as an “intelligence asset” to work for the Communist Party of China by a certain Ma Dong Li, a supposed handler of Chinese spies.
Hontiveros said Ma was also the alleged handler of dismissed Bamban, Tarlac mayor Alice Guo, whose Chinese name is Guo Hua Ping.
Hontiveros said She was able to acquire a 9G visa from the Cagayan Export Processing Zone (CEZA), which was confirmed by lawyer Marichelle de Guzman who said that the visa was issued on December 15, 2014, but was cancelled on July 8, 2016 after the Chinese national resigned from the company which operated inside the CEZA.
Hontiveros said the Department of Foreign Affairs (DFA) has informed the panel that its request for an interview with She has been referred by the Thai government to the Association of Southeast Asian Nations since She is involved in crimes committed in the region.
The DFA said it will coordinate with the Department of Justice “for appropriate action.”
“While we have been prevented from accessing She Zhijiang, sa aming pananaliksik at pagtatanong, nabigyan kami ng ilang impormasyon na magpapatunay na hindi ordinary ang access sa tao na ito. These files, from my understanding, are available only to police officers or those granted special access to classified government information (While we have been prevented from accessing She Zhijiang, but with due diligence, we were able to gather some information not accessible to many. These files, from my understanding, are available only to police officers or those granted special access to classified government information),” Hontiveros said.
“She Zhijiang has access to the files of Guo Hua Ping and the members of her family, because according to him, Guo Hua Ping is an intelligence agent. He released some of these files for the Senate hearing,” she added.
Hontiveros said some of the information they got were that “scam cities” were used to sow disinformation campaigns aimed at influencing the “hearts and minds” of the people.
Even without an interview with She, Hontiveros again presented Wang Fugui, a cellmate of She in a Thai jail.
Speaking with an aid of an interpreter, Wang, who was in an undisclosed place, answered queries from Hontiveros via teleconferencing.
Wang said he has no information on the whereabouts of She since the latter was transferred to another jail facility after he was interviewed by Al-Jazeera.
He said She entrusted to him encrypted intelligence documents before they parted. He, however, said he could not answer all the questions of Hontiveros due to his limited information that were based only from his talks with She while they were still sharing the same prison cell.
Wang said She told him that his transactions in the Philippines were legal but were later declared illegal due to the agreement of Thailand and China against gambling.
“If they are illegal, She is not the only one who should be condemned but other people in the Philippines as well,” Wang said.
“Right now, I cannot confirm if he is still alive. I am keeping the documents, but I cannot disclose its contents…He admitted he is part of the Ministry of Security in China involved in the Belt and Road Initiative, and he has disclosed to me a lot more confidential information,” Wang said.
He said Ma Dong Li served as the “bridge” who allegedly introduced She to other spies.
Wang said there are Filipinos who are working against Filipinos but cannot disclose their identities since he was “not given authority to reveal this (names of Filipinos).”
He said it is very important that the Philippine government talk to She so it can get to the bottom of the espionage issue.
Hontiveros said She lorded it over in the Philippines, Myanmar, and Cambodia with his gambling activities and used the aliases She Lunkai, Tang Lungkai, Tang Krangkai, and Dylan She, and allegedly continued his activities together with the Communist Party of China.
‘AGENT OF INFLUENCE’
The National Intelligence Coordinating Agency said during the hearing that Guo is classified as an “agent of influence.”
NICA deputy director general Ashley Acedillo said that based on their assessment, Guo cannot be classified as a “foreign intelligence agent” since this still has to be confirmed by her alleged employer.
Acedillo said the country has no existing legislation that defines what an agent of influence is but given the historical activities that have been “common” especially during the Cold War, Guo can be classified as such.
“There are several ways to define an agent of influence. What is applicable on the part of Ms. Guo Hua Ping is that she uses her influence, her stature or her position to influence public opinion or decision-making to produce results beneficial to the country whose service they benefit from,” Acedillo said.
“So, to that effect, Madam Chair, she may be classified as such (agent of influence), although we would like to acknowledge that there is no law currently that defines it as such. However, intelligence and counterintelligence convention, which falls under our purview, recognizes that convention,” he added.
He said even other government intelligence agencies agree that Guo is an agent of influence.
Acedillo said that NICA is continuously monitoring the presence of Chinese spies in the country and will brief the committee on their findings in an executive session.
“The request (for an executive session) is made because first of all, we’d like to acknowledge that the extent is pervasive and as of the initial briefings that we’ve had from our regions, mukhang wala pong region na exempted (it looks like there no regions exempted),” he said.
He said they have yet to establish the involvement of government officials to the supposed spies working in the country as they are still waiting for the investigation reports from their regional offices.
Acedillo also said that Chinese advance persistent threat (APT) groups are conducting hacking activities in the country targeting government and private sector entities, which was the same action the APTs used in targeting “at least one American telecommunications company.”
“There has been an effort in the lead up to the November 2024 elections in the United States,” he said, adding that details of which they will disclose in the executive session with members of the committee.
He said these APTs are different from “normal individual hackers” due to their resources, including the personnel they have and the “sophisticated skills that they possess.” He also said that APTs are believed to be state-backed.
He said “troll farms” associated with certain politicians are hard to prove since their troll army are foreign-based.
“But we cannot discount the possibility that these POGO hubs are also operating as dual-base entities…Because if you look at it, kung puwede ka pong mang-scam diretso po doon sa mga individual subscribers, puwede ka rin mag-push ng misinformation and other formation via SMS (Because if you look at it, if you can directly scam an individual subscriber, you can also push misinformation and other formation via SMS [short messaging service]),” he said.
CRIMINAL FOUNDATIONS
Also during the hearing, retired Rear Admiral Rommel Jude Ong of the Ateneo School of Government said that he conducted a study on the malign foreign influence and interference (MFII) in the country and found out that POGOs “represent a prime example of economic activities with criminal underpinnings, including collusion with local government officials.”
“These operators have likely evolved into platforms for foreign influence, facilitating illegal activities while exerting subtle pressure on local politics,” he said in his study.
As an example, he said Guo was implicated in POGO-related controversies aside from allegations that she is a Chinese spy as claimed by She.
He said this shows how local officials “can be entangled in broader geopolitical dynamics.”
He said POGOs also serve as platform for influence operations, including hosting of troll farms, as they were used to manipulate public perception and sway political outcomes.
While the Communist Party of China does not endorse these operations, he said they can still be used to stir “internal conflict and exploit nationalistic sentiments, thereby maintaining a monopoly on power and limiting rival influences.”
Ong said that the use of Chinese nationals of Filipinos in acquiring lands using falsified documents is a “fraudulent behavior” that has serious security implications which affect local governance and create long-term vulnerabilities for the country.”
With these, Ong said it is clear that POGOs were used to advance the interests of other countries.
“That is part and parcel of the methodology that they have employed as a tool of statecraft,” he added.
Hontiveros said the Senate investigations unearthed a number of loopholes in the country’s system which POGO operators abused.
She said the committee will recommend the implementation of stricter measures in acquiring birth certificates especially those with foreign-sounding names to prevent the likes of Guo to acquire one; the need to fix the immigration procedures, passports and visa applications for putting up businesses in the country; bank secrecy; and the privilege to participate in the local elections.
“Natukoy ng POGO syndicates ang kahinaan ng ating mga batas at sinamantala nila ito para magpakasasa habang ang kapwa nila ay napipinsala…No this is not a witch hunt. Hindi po ito ‘tokhang’. Yung nakasanayan ninyong gawi huwag ibintang dito (POGO syndicates have identified the weaknesses in our laws and have taken advantage of them to amass wealth while others are suffering… No, this is not a witch hunt, this is not ‘tokhang’ that applies to what has been practiced by some),” she added.
Hontiveros said Senate President Francis Escudero has assured her of the approval of the proposed Anti-POGO Bill even if Malacañang has issued an executive order banning POGOs.
“To ensure that POGOs, whatever they may be called or disguised as in the future, will forever be banned in the country…Ipapasa natin ang mga angkop na batas para paigtingin ang mga Sistema kontra-abuso sa civli registration, immigration, money laundering, kandidatura sa eleksiyon, at national security (We will pass appropriate laws to strengthen our system against abuses in civili registration, immigration, money laundering, joining the elections, and national security),” she said.
Hontiveros concluded the committee investigation on POGOs after 16 hearings.
“This may be the end of our hearings on POGO, but this is only the beginning of the legislative reforms that we will strive to push to ensure to every Filipino that there will be never another Alice Guo.”
Hontiveros said the arrest order on Guo is now lifted with the end of the hearing.
Guo and the other resource persons were invited in yesterday’s hearing, but the Pasig City Regional Trial Court Branch 167 did not allow them to attend since there was also a scheduled hearing for the human trafficking cases filed against them.
