NSC deepens scrutiny of Chinese inflows to firm linked to VP's husband

The National Security Council (NSC) is deepening its scrutiny of reported financial inflows from China to a company linked to Manases “Mans” Carpio, husband of Vice President Sara Duterte, following revelations in an ongoing Senate impeachment trial that some of the remitting entities have ties to Chinese state-owned enterprises.

National Security Adviser Eduardo Oban Jr. said the agency will coordinate with intelligence, investigative, and other government bodies to assess information presented in the Senate impeachment court and determine whether the transactions carry national-security implications.

The development follows testimony from Anti-Money Laundering Council (AMLC) executive director Ronel Buenaventura, who stated that Cale88 Foods Corp. — a company in which Carpio previously served as an incorporator, director, and shareholder — received P319.33 million in inward remittances from mainland China and Hong Kong.

Of that total, approximately P315.94 million originated from mainland China and P3.39 million from Hong Kong.

The transactions were flagged to the AMLC as covered and suspicious due to the absence of an identified underlying legal or trade obligation, stated purpose, or economic justification.

Senator-judge Risa Hontiveros subsequently identified China National Township Enterprises and Beijing Zhenweifang Food Co. among the entities tied to the remittances, citing office research linking the firms to China’s state-owned enterprise system.

Hontiveros said China National Township Enterprises formerly operated under China’s Ministry of Agriculture before becoming a state-owned agricultural enterprise supervised by the State-owned Assets Supervision and Administration Commission of the State Council.

She added that Beijing Zhenweifang Food Co. is connected to Xinjiang Fruit Industry Group, an organization with ties to China's state-owned system and an institutional Communist Party organization within its corporate structure.

However, neither the AMLC nor its executive director testified that the Chinese government directly sent money to Cale88, nor did they establish that any portion of the P319.33 million directly benefited Duterte or Carpio personally.

Defense lawyers stressed this distinction during the hearing.

Defense counsel Atty. Mark Vinluan pressed Buenaventura on whether AMLC records showed Beijing funneling funds to Cale88, to which the official replied that records presented to the court contained no such proof.

He also noted that the agency lacks records demonstrating how much of Cale88’s transactions redounded to the personal benefit of Duterte or Carpio.

The China transactions formed part of a broader financial picture presented to the court, with AMLC records showing more than P1.2 billion in covered and suspicious transactions involving Cale88 between 2022 and 2025.

The company was incorporated in 2021 with a paid-up capital of just P125,000, contrasted with substantially larger cash movements and modest reported sales.

The court also heard that Cale88 received nearly ₱50 million in remittances from eight other countries: Russia, Ukraine, Kazakhstan, Lithuania, South Africa, Tajikistan, the United Arab Emirates, and the United States.

Separately, bank testimony revealed that Cale88’s two peso checking accounts at Security Bank recorded about P40.14 million in inflows and ₱40 million in outflows in 2024 before the accounts were closed in July 2026.

A bank witness could not confirm whether the China-related remittances passed through those peso accounts or a foreign-currency account.

The financial evidence has expanded the impeachment court’s examination of Duterte and Carpio’s declared wealth.

Buenaventura testified that aggregate covered and suspicious transactions involving their accounts from 2007 to 2025 reached about P4.4 billion, while their combined Statements of Assets, Liabilities, and Net Worth for the same period totaled approximately P840 million.

The figures have prompted senator-judges to question whether the financial movements align with the couple’s declared assets and legitimate business activities, though prosecutors noted the totals do not automatically prove the funds represent personal wealth or illegal proceeds. The defense continues to challenge the interpretation of the AMLC data.

The Chinese Embassy in Manila has denied that Beijing funneled money to a Philippine political faction, offering a counterpoint to allegations raised during the proceedings.

With the NSC reviewing the information, the focus of the controversy is shifting from the volume of money entering the Duterte-linked company to the identity of the foreign counterparties, the purpose of the transfers, and whether any foreign government or political influence can be verified through documentation.