NSC flags possible security implications of China-linked fund flows

The National Security Council on Tuesday expressed serious concern over information presented during Vice President Sara Duterte’s impeachment trial involving reported financial inflows from China to a Philippine company linked to her family.

National Security Adviser Eduardo Oban Jr. said the transactions warrant further examination but stressed that the impeachment proceedings remain ongoing.

“While the proceedings remain ongoing and the information presented should be properly examined within established legal processes, the reported transactions and any credible information involving significant foreign financial flows that may bear upon the country's national security warrants careful, in-depth, and responsible assessment,” Oban said.

The NSC will coordinate with intelligence, investigative and other relevant government agencies to determine whether the reported transactions have national security implications, he added.

Anti-Money Laundering Council records presented before the Senate impeachment court showed that Cale88 Foods Corp., a company linked to Duterte’s husband, lawyer Manases Carpio, received about ₱319.33 million in remittances from mainland China and Hong Kong.

Armed Forces of the Philippines Special Spokesperson for the West Philippine Sea Rear Admiral Roy Vincent Trinidad separately said Defense Secretary Gilberto Teodoro had raised the possibility of serious security implications if the allegations are proven.

“I don't want to give my personal thoughts on that, but I would like to highlight the statement of the SND (Secretary of National Defense) that this could have, if proven, this could have serious national security implications,” Trinidad said.

He stressed that the veracity of the information must first be established.

“When we see foreign funding coming in, used to further the stand of an adversary, used to coopt political elite or economic elite for whatever reason... then these are actions that undermine the rule of law, that undermine the government stand,” Trinidad said.

“These actions were designed to weaken our resolve to stand up for what is ours. So it's very important, first and foremost, to establish the veracity of these reports,” he added.

The Chinese Embassy in Manila has denied allegations that Beijing funneled money to a Philippine political faction, describing the claims as a “false narrative.”

The reported transactions remain under scrutiny in Duterte’s impeachment trial.