Ombudsman suspends Mayor Guo and two others

Up to 6 months via POGOs in Bamban

MANILA, Philippines – Mayor Alice Guo and two other officials of Bamban, Tarlac, have been placed on precautionary suspension by the Office of the Ombudsman as authorities investigate their culpability in the illegal activities of a Philippine offshore gaming operator (POGO) in the municipality.

In a nine-page order released yesterday, the Ombudsman granted the Department of Interior’s (DILG) request to suspend Guo, business permit and license officer Edwin Ocampo and municipal legal officer Adenn Sigua.

“You are hereby suspended without pay for the duration of the investigation until its conclusion, but for a maximum of six months,” wrote Ombudsman Samuel Martires.

The ombudsman said he saw sufficient grounds to suspend the three as there was “strong evidence of their guilt”. He said the charges against them could justify their removal from office and their continued stay could undermine the investigation.

Martires also pointed out the need to preserve the documents and evidence that may be in the control or possession of the three officers.

Guo confirmed receipt of the Ombudsman’s suspension order but protested her innocence.

“Today, I received an instruction from the Ombudsman regarding my alleged six-month suspension. I agree with the legal process and accept the Ombudsman’s decision, but I will fight for my case,” Guo said in a statement on her Facebook page.

“I would like to reaffirm my innocence and honesty in serving our city and people,” Guo added.

“I am ready to work with the authorities to ensure that truth and justice prevail,” she said.

She also thanked her supporters and said that people’s support gives her strength.

“I will not give up and will continue to defend my integrity and protect my rights as an individual,” Guo added.

Juan Victor Llamas, Secretary of State for Foreign, Legal and Legislative Affairs at the Ministry of the Interior, praised the Ombudsman’s decision.

“We are awaiting this order from the Ombudsman. Since we filed the complaint, we are very optimistic that a preventive suspension will be imposed because the evidence is strong,” Llamas told The STAR.

Serious misconduct

Previously, the DILG had filed an administrative complaint against Guo, Ocampo and Sigua for serious misconduct, serious dishonesty, gross neglect of duty and conduct detrimental to service.

The complaint was filed after the DILG set up a task force to investigate the culpability of local officials in aiding and abetting the illegal activities of POGO company Zun Yuan Technology Inc. in Bamban.

“Our reasoning was a violation of the ban on subsidies and corrupt practices because she (Guo) had initially issued a business license to Hongsheng and did not revoke it when its POGO license with the Philippine Amusement and Gaming Corp. expired,” Llamas said earlier.

He noted that in February 2023, a raid was carried out on the POGO hub due to its involvement in cryptocurrencies.

“If she had only revoked the business license, the illegal operation would not have continued. And secondly, Hongsheng was renamed Zun Yuan and she also issued him a business license, even though his PAGCOR license expired in February. The illegal operation continued and in March there was a raid on human trafficking charges,” Llamas added.

In March, Zun Yuan’s Baofu complex was raided for suspected human trafficking and serious illegal detention.

The same site was raided in March 2023, when the POGO hub was still called Hongsheng. After the raid, it was renamed Zun Yuan.

According to a DILG task force investigation, Guo’s disposal of her Baofu shares through a deed of assignment is “simulated” as the amount of P2.5 million appears to be disproportionate to her investment in the company, which includes about eight hectares of land.

DILG also stressed in its complaint that despite the raid and the issuance of a cease-and-desist order against Zun Yuan, Guo “neither terminated nor revoked their business licenses due to their business interests in Baofu.”

Ocampo is accused of processing and issuing permits for Zun Yuan despite knowing that the documents were incomplete.

Sigua is accused of dereliction of duty for failing to investigate the negligence of the Sangguniang Barangay members who passed a resolution expressing no objection to Zun Yuan’s motion. Sigua is also held accountable for failing to investigate the issuance of permits by Ocampo.

“The records show that Sigua knew and was already acquainted with Guo, as he was the one who notarized the purchase contracts for the eight properties that Guo bought and which now house the Baofu site where Hongsheng and Zun Yuan operated,” the ombudsman said.

Guo’s ties to the POGO center are also currently being investigated in the Senate. The Senate has since turned its focus to the new mayor’s allegedly dubious background after suspicions arose that she might be a Chinese spy or agent, which she denied.

Senators are currently investigating Guo’s family background in more detail after she was accused of lying that her mother was a Filipino domestic helper.

This has also prompted the Office of the Solicitor General to form a team to consider initiating a quo warranto proceeding against Guo for falsely claiming to be Filipina when she ran for mayor.

The senators also question Guo’s alleged ties to criminals, who they say were co-owners of the mayor’s company, Baofu Land Development Inc.

In documents Baofu filed with the U.S. Securities and Exchange Commission in 2019, the founders included Guo, Filipino Rachel Joan Malonzo Carreon, Cypriot Zhiyang Huang, Chinese Zhang Ruijin and Baoying Lin from the Dominican Republic.

Zhang was convicted in April for links to what was allegedly “Singapore’s biggest money laundering case.”

According to a report by Channel News Asia, Zhang “owns assets worth $41 million overseas, including shares in a Philippine real estate development company.”

The Philippine National Police is currently investigating information received by Senator Risa Hontiveros’ office that suggests Guo has ties to criminals, as well as reports linking the mayor to the Chinese Communist Party.

Hontiveros said the Ombudsman’s preventive suspension – especially against Guo – was a step in the right direction.

“We have also received information that immediately after the raid on POGO, she attempted to obstruct the ongoing investigation. This should already have justified a suspension. We just hope it is not too late,” the senator said.

“I look forward to our board meeting soon. I hope we will learn more about Alice Guo’s true role, not only in POGOs but also in the threats to our national security,” she said. — Bella Cariaso, Cecille Suerte Felipe