CCTV footage showed three of the officers and a confidential informant approaching the businessman in the parking lot of a restaurant on Thursday afternoon.
A Police Regional Office 3 (PRO-3) spot report said the officers asked the businessman to board a red Toyota Vios without presenting an arrest warrant.
When the businessman resisted and called for help, restaurant employees intervened, preventing the officers from taking him.
The report said another confidential informant later arrived, spoke with the businessman, took photos of his identification card and face, and realized they had mistaken him for another person. The officers and informants then left the area.
A follow-up report identified the three officers involved as two police master sergeants and a staff sergeant assigned to the San Rafael Municipal Police Station. Nartatez said the station chief was also relieved under the principle of command responsibility.
In a statement, the PNP said the incident stemmed from a case of mistaken identity during a follow-up operation based on information related to an ongoing complaint.
"Upon realizing that the individual was not the subject of the information being acted upon, the personnel immediately discontinued the operation and left the area," it said.
The PNP stressed that officers are expected to strictly follow operational procedures and respect the rights and dignity of every individual.
It said PRO-3 has been directed to conduct a thorough review to determine whether operational guidelines were followed and to identify any lapses.
The involved officers have voluntarily surrendered to their chief of police, been relieved from their posts pending investigation, and had their issued firearms secured.