The city of Manila, Philippines Photo: VCG

As reports mount on the participation of Philippine offshore gaming operators in illegal activities, the Philippine National Police (PNP) has taken action by establishing a special task force on July 20 to crack down unlicensed Philippine Offshore Gaming Operators (POGOs) hubs that authorities believe have tarnished the country's reputation.

Anti-Kidnapping Group is one of the police units under the task force. 

The move also came after the kidnapping and murder of a Chinese national and a Chinese-American in the Philippines in early July that has sparked security concerns among those engaged in activities with the country, such as business cooperation. The online gambling industry has long been considered a breeding ground for a series of criminal activities and human rights violations, posing a great threat to society, especially to Chinese groups living or visiting the Philippines.

Despite three s uspects being repatriated under collaboration between law enforcement agencies of China and the Philippines in mid-July, apprehension and distrust of Chinese persist. 

A journalist who has been stationed in the Philippines for many years told the Global Times that he has noted a frequent occurrence of kidnapping and murder incidents in the country's local news over the years. Some social media accounts within the Filipino-Chinese community even disclose at least two such incidents on a weekly basis. 

Why are kidnapping cases so frequent in the Philippines? What historical and institutional reasons underlie this crime? What role does local government corruption play in these kidnapping cases? This investigative report aims to uncover why the Philippines was dubbed by international media as the "kidnapping capital of Asia" and how the crimes have eroded the confidence of Chinese individuals in investing and traveling to the country.

Chinese police charter a plane to escort 208 suspected criminals involved in telecom fraud back to China, who were arrested in the Philippines on November 14, 2019. Photo: VCG

'Hard workers, silent victims'

A Chinese national and a Chinese-American arrived in the Philippines on June 20 to meet with other Chinese nationals to discuss a business venture, but later they were kidnapped by an unknown group. The wife of one of the victims received a ransom demand for 5 million yuan ($687,435), which was negotiated down to 3 million yuan. The money was sent, but the families did not hear from the suspects again.

The two victims, from different medical facility companies, were found murdered on June 24, according to media reports.

The kidnapping case, amid strained ties between two countries, sparked widespread discussion. Fear and conjecture about the security situation in the Philippines once again erupted on the Chinese internet.

Looking back at history, the 1990s were a dangerous, terrifying, and nerve-wracking time for the Filipino-Chinese community. Manila was once voted the kidnapping capital of Asia. In an article "Abductions 'Traumatize' Chinese in Philippines" published in the New York Times at that time, it said when the children in some Chinese-Filipino families head off for school in the morning, they are handed cellular phones and are reminded to call home every hour. "My mom would have a heart attack if I didn't call," said one 10-year-old Manila boy. 

Philippine newspaper, the Inquirer, called the Chinese in the Philippines "hard workers, silent victims" who are easily becoming targets of kidnappings. In the year of 2014, seven out of 10 kidnap-for-ransom (KFR) victims in Manila were Chinese, according to the report.

"It may be a sign of the economic desperation of the Philippines that one of the big growth industries here is kidnapping. The targets are usually members of the small but comparatively affluent population of Chinese-Filipinos, who have a reputation for paying large ransoms and keeping their mouths shut," read the New York Times article.

Li Kaisheng, vice president of the Shanghai Institutes for International Studies, told the Global Times that the thriving online gambling industry in the Philippines has been identified as a key factor contributing to the alarming increase in kidnappings targeting Chinese nationals. This industry has created a fertile environment for a range of illicit activities to flourish.

Deeply-rooted corruption is also contributing to the chaos, as some illegal groups collude with corrupt officials, which are common across online gambling and fraud.

Many Chinese people expressed concern that the current intense relations between China and the Philippines over disputes in South China Sea issues have fueled hatred and crimes against Chinese. 

Li, however, believes that the incident has weak relation to the bilateral ties, it rather reflects significant flaws in local law and order.

Suspects involved in online scam and sex trafficking operation are detained in Manila on December 14, 2023. Photo: VCG

Money-power collusion behind 'black industry'

Many Filipino-Chinese individuals have shared with the Global Times that the Philippine gambling industry is not only shielded, but also endorsed by influential figures in government, leading to the emergence of a sinister kidnapping network in the country. 

Gambling in the Philippines dates back decades. In 1946, following the US granting Philippine independence, former Philippine president Ferdinand Marcos issued a presidential decree to establish the Philippine Amusement and Gaming Corporation (PAGCOR) conceived to oversee overseeing the national gambling sector. 

PAGCOR falls under the jurisdiction of the Philippine president's office, with its earnings ostensibly intended for the country's development initiatives, yet a significant portion ultimately finds its way into the president's personal coffers. 

In the modern era, the advent of the internet facilitated the transition of offline gambling in the Philippines to the online realm, swiftly falling under PAGCOR's regulatory purview. Online gambling is permitted by PAGCOR to have up to 5 sub-licenses under a single official license. However, each sub-license often operates numerous online gambling platforms, with no set clear limit on their quantity. The exact number of these platforms operating in the Philippines remains unknown. 

Apart from licensed gambling entities, there are also numerous illicit and deceitful gambling operations in the country.

Some illegal gambling operations in the Philippines are being protected by powerful individuals, with many high-ranking officials in the country reaping significant benefits from the industry, the journalist based in Manila said.

While the Philippine government and law enforcement have made efforts to crack down on illegal online gambling operations in recent years, only lower-level employees have been targeted. Middle and upper management have largely escaped punishment. With successful anti-fraud measures in China affecting the profitability of the gambling industry, some professionals have turned to kidnapping as a new source of income. 

The shared criminal tools between illegal gambling and kidnapping make for a smooth transition for those involved. As targeting wealthy Chinese businessmen in the Philippines becomes more challenging, kidnappers are now focusing on Chinese and foreign nationals visiting the country, particularly those engaged in import and export trade.

Blurred legal boundaries 

Why are kidnapping cases so prevalent in the Philippines? The root cause can be attributed to the corruption and negligence within the Philippine judicial system, encompassing the police, law enforcement agencies, prosecutor's offices, and courts. 

Kidnappers have long exploited the loopholes within the system and have become adept at avoiding punishment. Even in cases where the evidence is indisputable and the perpetrators are caught in the act, the legal proceedings can be drawn out for years. 

Take the case of Filipino-Chinese businesswoman Sally Chua, who was abducted for ransom in 2013. Despite being rescued by the police shortly after the incident, it is shocking that it took nearly 11 years for a Philippine court to deliver a verdict, with the kidnappers still having the option to appeal. 

In contrast, the recent high-profile case of two executives from a medical company being murdered has garnered widespread attention, prompting swift action from the Chinese government and urging the Philippine authorities to act promptly. 

However, past incidents have shown that the Philippine police often delay filing cases or shift blame onto lower-level individuals after apprehending the culprits. The lack of a strong deterrent within the legal system has allowed kidnappings to persist unchecked, perpetuating a cycle of tragedy. 

In the Philippines, illicit activities can be overlooked for a price, with money dictating the boundaries between what is deemed lawful and unlawful.

Furthermore, it is worth noting that the enforcement of laws in the Philippines tends to be lax, with a disproportionate focus on foreigners rather than local citizens. This is exemplified by the "smoking ban" which is often used as a pretext for extortion by law enforcement agencies, particularly targeting foreigners.

In light of recent kidnapping cases involving Chinese nationals, there is concern that Chinese business travelers may be avoid visiting the Philippines. 

Wei Changren, president of Jinlü Consulting, a travel consultancy, emphasized the importance of the bilateral trade relationship between China and the Philippines, with China being the fourth largest export market for the Philippines. 

He believed that the recent incidents are expected to have a short-term impact on the business travel market, potentially leading to a decrease in business travelers. However, the impact on pure tourists is expected to be minimal, he said.

Li said that the Chinese government has consistently urged the Philippines to crack down on the gambling industry, but the issue remains unresolved due to factors such as tax revenue considerations.

This unfortunate incident underscores the need for increased cooperation between the Chinese and Philippine governments in terms of public security, which is crucial for strengthening bilateral relations, the expert stressed.