The National Bureau of Investigation arrested San Simon, Pampanga Mayor Abundio "Jun" Punsalan Jr. along with a close associate in an entrapment operation over allegations of multimillion-peso extortion and illegal possession of firearms.

The mayor and his alleged accomplice, Ed Ryan Dimla, were apprehended on 5 August in Clark, Pampanga, by agents of the NBI Intelligence Service (NBI-IntS) led by Director Jaime Santiago.

Santiago said the operation was conducted after a complaint filed on 30 July by RealSteel Corporation, which claimed it was being extorted by individuals linked to the local government.

The NBI said the scheme began when one Eric Yabut, posing as a San Simon municipal officer, ordered the company to stop construction and hauling activities.

Shortly after, Dimla—who introduced himself as the town’s “External City Administrator” and claimed to be acting on behalf of Mayor Punsalan—allegedly demanded P30 million to “prevent” any further municipal action against the firm, as well as an additional P125 million purportedly to reimburse the mayor’s political campaign expenses.

This came after it was alleged that the owner of the company financed the mayoralty rival of Punsalan.

Investigators said the threats included revocation of RealSteel’s business permits and the cancellation of a municipal ordinance that granted the company tax incentives. A sting operation was set up, culminating in the arrest of both suspects while they received marked money from the complainant.

The NBI agents also seized unlicensed firearms reportedly in the possession of the suspects.

Punsalan and Dimla were charged with robbery under Article 299 of the Revised Penal Code, violations of the Anti-Graft and Corrupt Practices Act (Republic Act 3019), and illegal possession of firearms (RA 10591). The two underwent inquest proceedings before the Department of Justice on 6 August.