Businessman in drug case: I’m not close to Paolo

MANILA, Philippines - Despite the release of photos showing him apparently enjoying the company of President Duterte’s son Paolo, a Cebu-based Filipino-Chinese businessman insisted yesterday that he was not close to the vice mayor of Davao City.

Businessman Kenneth Dong, like broker-importer Mark Taguba, told a Senate hearing yesterday on drug smuggling that he had heard rumors linking Paolo Duterte to illegal deals, but he said he had no personal knowledge about it.

At the end of his testimony, Dong was led out of the session hall by Senate security and was turned over to waiting National Bureau of Investigation (NBI) agents who arrested him on another unrelated offense – rape.

NBI deputy director Ferdinand Lavin said the arrest was based on a warrant for rape issued by a Parañaque City regional trial court judge.

A 33-year-old unnamed woman who filed the case said Dong raped her on April 10, 2016 while she was drunk and possibly drugged. Dong has denied the allegations.

Members of the Senate’s Office of the Sergeant-at-Arms (OSAA) turned Dong over to waiting NBI agents.

The arrest was carried out right after the Blue Ribbon committee hearing on smuggling allegedly involving Bureau of Customs (BOC) officials. The Senate investigation was prompted by the seizure of over P6 billion worth of shabu that entered the country through the BOC’s green lane.

In a press conference late yesterday afternoon, Justice Secretary Vitaliano Aguirre II revealed that the arrest warrant against Dong was issued last June 30 by the Parañaque City RTC Branch 195.

Aguirre said the NBI would inform the court about Dong’s arrest.

“If there are further proceedings, then the Senate has to address subpoena to the NBI,” he explained.

Dong’s lawyer Karla Frias said the businessman was innocent of the rape charge.

‘Davao Group’

During the hearing, Sen. Antonio Trillanes IV grilled Customs Commissioner Nicanor Faeldon and other officials on the so-called “Davao Group” allegedly led by Davao City Vice Mayor Paolo Duterte, a son of President Duterte.

Trillanes showed to the committee several pictures taken from the Facebook account of a certain Charlie Tan showing Dong with Paolo and Duterte’s other son, Sebastian.

“The broker Taguba clearly said that the contact person in this shipment is Kenneth Dong. Mr. Dong, as seen in the pictures, and he himself admitted he has a personal relationship with Mr. Paolo Duterte,” Trillanes said.

Dong said he first met Paolo in 2008 when he set up a branch of his weighing scale business in Davao City. He stressed he was not close to the Dutertes.

Trillanes then turned to Taguba, who first raised the issue about the so-called Davao Group during a hearing at the House of Representatives. Taguba mentioned a certain Jack, Tita Nanie and “Small,” all of whom are not officials in the BOC but had been invoking the Davao Group to facilitate their transactions in the bureau.

A visibly distraught Taguba said he was not sure whether the individuals were telling the truth, but he gave them bribes anyway to facilitate the release of shipments he was involved in.

Trillanes said he knows “Small” as Nilo Abellera, said to be a councilor of Davao City.

The senator also asked BOC deputy commissioner Gerardo Gambala about the Davao Group, but the latter said he heard only of “noises” about the group.

Trillanes said that he understood the position of Gambala and how difficult it was for him to openly name Duterte. “But in close conferences, probably you’ll get more candid responses,” he said.

Trillanes admitted that what had been presented was circumstantial, “but should we further investigate this issue, we will unmask who is behind this (group).”

Gordon and Sen. Manny Pacquiao, however, said Taguba’s claim was only hearsay as the witness himself admitted to just hearing talk about the so-called group.

Gordon and Sotto said there was no need to invite Paolo, as proposed by Trillanes.

During the hearing, it was learned that 890 kilos of shabu seized by the NBI in San Juan City in December last year were also imported by Hong Fei.

Senators said Chen’s firm apparently was the “go to” importer if one wanted to smuggle items from China.

Gordon said he would invoke a legal treaty between the Philippines and China to help facilitate the investigation.

Background check

NBI deputy director for intelligence Vicente de Guzman explained that the case against Dong cropped up during their background check on the businessman, who has been testifying in the congressional inquiries into the drug smuggling issue.

“This is a distinct and separate case; it involves a personal offense and has nothing to do with Senate investigation,” he stressed in the same press conference.

Aguirre revealed that Dong could become a state witness in the drug charges involving the shabu shipment if he wants to.

“That’s possible as long as he would not appear to be the most guilty. Anyone can apply to be covered by WPP (witness protection program) subject to assessment of eligibility,” he added. 

Before the Senate Blue Ribbon committee, chaired by Sen. Richard Gordon, suspended its hearing at the session hall, Gordon said the Senate guards were given instructions to follow Dong if he asked to go to the restroom during the hearing.

Senate Majority Leader Vicente Sotto III said this was not the first time that a resource person was arrested in the chamber after being found involved in illegal drugs.

Dong was the contact between Filipino-Chinese businessman Manny Li and broker Mark Taguba.

Li was first approached earlier this year by Richard Chen aka Chen Ju Long, owner of Hong Fei Logistics Ltd., seeking help for shipping goods from Xiamen. Li then contacted Dong, who in turn sought the help of Taguba.

Taguba, with his friend TJ Marcellana, called up another broker, Eduardo Dio and the three used a front consignee and importer EMT Trading owned by Eirene Mae Tatad.

Dio is Tatad’s brother-in-law. Taguba and Marcellana denied knowing Chen or Li, and vice versa.

As of press time, Chen and Li remain in Senate custody after they were cited in contempt and arrested by the chamber for being evasive before the committee.

The drugs arrived at the BOC last May 17 and released from the port on May 23.

Acting on a phoned-in tip from their counterparts in Xiamen on May 25, Customs Intelligence and Investigation Service director Neil Estrella raided Chen’s warehouse in Valenzuela City and recovered the shabu contained in steel cylinders.

The Xiamen customs officials asked their local counterparts to contact Chen to guide them during the raid. They also requested that Chen be protected and not be punished.

As to why this was so, the senators still want to find out.

Drug charges

The NBI, meanwhile, filed drug charges before the DOJ against Dong, Chen, Taiwanese nationals Chen Min and Jhu Ming Jyun; Taguba, Marcellana, Tatad and Fidel Anoche Dee in connection with the smuggling of the P6.4-billion shabu.

They were charged with importation of illegal drugs under Republic Act 9165 (Comprehensive Dangerous Drugs Act).

“Subjects, through their indispensable cooperation, caused the importation of five wooden crates from China. These crates contain cylinders packed with a total of 605 transparent plastic bags containing methamphetamine hydrochloride or shabu, a dangerous drug,” the complaint read.  – Paolo Romero, Rey Galupo, Edu Punay, Marvin Sy