Philippines Roundup: Sara Duterte impeachment proceedings, Ayungin tensions, $42bn electricity refund

Sara Duterte impeachment trial resumes over alleged unexplained wealth

The Philippine Senate resumed the impeachment trial of Vice President Sara Duterte on October 12, with defence lawyers scheduled to cross-examine forensic financial analyst Alexander Cabrera over allegations that Duterte and her husband, lawyer Manases Carpio, failed to declare hundreds of millions of pesos in assets and income. The proceedings entered their 38th day, with Cabrera returning to the witness stand after presenting his findings on October 9. His analysis was based on bank and tax records, financial documents from businesses linked to the couple and Duterte's statements of assets, liabilities and net worth (SALNs). Cabrera alleged that Duterte and Carpio had ₱817.87 million in unexplained wealth between 2022 and 2025. His report identified ₱207.7 million in allegedly undeclared cash, ₱143.5 million in personal and real properties and ₱111.85 million in income. It also identified ₱142.2 million in income from Cale88 Foods Corp. and Metro Chow King Food Corp., alongside ₱212.63 million from Gencorp Industries Inc. The analyst argued that the discrepancies raised questions about the accuracy of Duterte's asset declarations and her continued involvement in business activities while serving as vice president. The defence was expected to challenge the calculations, financial assumptions and conclusions presented by Cabrera. The allegations remain contested and have not been established by a final Senate judgment.

Marcos acknowledges rising tensions at Ayungin Shoal after blocked medical evacuation

President Ferdinand Marcos Jr. has acknowledged that tensions have escalated at Ayungin Shoal, also known internationally as Second Thomas Shoal, following an incident in which Chinese coast guard vessels allegedly obstructed the emergency evacuation of a Filipino soldier. Speaking during his visit to Singapore, Marcos said the Philippines would not accept additional requirements imposed by China on Philippine operations in the West Philippine Sea. The latest confrontation involved a Philippine Navy serviceman stationed aboard the BRP Sierra Madre, a grounded warship that Manila maintains as a military outpost at Ayungin Shoal. According to the Philippine Coast Guard (PCG), Chinese vessels interfered with efforts to evacuate the soldier for urgent medical treatment. The evacuation was eventually completed on October 8, but the operation lasted almost 10 hours because of what Philippine authorities described as dangerous manoeuvres and harassment by Chinese coast guard vessels. Ayungin Shoal has long been a flashpoint between Manila and Beijing. China claims much of the South China Sea, including waters within the Philippines' exclusive economic zone. A 2016 international arbitral ruling rejected the legal basis of China's expansive historic-rights claims, although Beijing does not recognise the decision. The Philippines maintains that its military and coast guard personnel have the right to operate in the area, including conducting resupply and medical evacuation missions. The latest incident has renewed concerns about the safety of Philippine personnel and the risk that confrontations between the two countries could escalate further.

Energy regulator orders Meralco to refund ₱2.64 billion to customers

The Energy Regulatory Commission (ERC) has ordered electricity distributor Manila Electric Company (Meralco) to refund approximately ₱2.64 billion to customers after a regulatory review found that the company collected more in distribution charges than it was permitted to retain. The directive was approved on October 9, 2026, under ERC Case No. 2026-129 RC and announced on October 11. The regulator said the refund would be distributed over approximately six months, with an average adjustment of ₱0.1020 per kilowatt-hour across customer categories. The amount follows a review of Meralco's distribution charges between January and June 2026. Under the regulatory process known as a true-up, the ERC compares the company's actual revenue and electricity sales with the distribution rates it was authorised to collect. The Commission used Meralco's Actual Weighted Average Tariff (AWAT) and compared it with the approved distribution rate of ₱1.3522 per kilowatt-hour. The review found excess collections that must be returned to customers. Rather than approving Meralco's proposed 12-month refund period, the ERC shortened the implementation period to approximately six months to provide relief sooner. The refund will vary by customer category. Residential consumers and small businesses will receive an adjustment of ₱0.1733 per kilowatt-hour, while other classes will receive different rates. The adjustment is expected to appear as a separate item on electricity bills.

Ombudsman Remulla urges Supreme Court to review anti-plunder law amid flood-control scandal

Philippine Ombudsman Jesus Crispin “Boying” Remulla has called on the Supreme Court to reconsider a legal doctrine that he says makes it difficult to prosecute large-scale corruption, particularly cases involving complex financial transactions and multiple intermediaries. Delivering his first annual report on October 12, Remulla questioned the Supreme Court's 2016 decision in Macapagal-Arroyo v. People, which he said introduced two significant requirements in plunder prosecutions. According to Remulla, prosecutors must identify a principal or “main plunderer” and establish that the accused personally received or benefited from the stolen funds. He argued that those requirements make it harder to prosecute sophisticated corruption schemes involving intermediaries, shell companies and individuals who conceal the movement of public money. “The smarter the thief, the safer he is,” Remulla said. Criminals could exploit the doctrine by moving money through several people or companies, making it difficult to prove who ultimately benefited. He also told the court: “It is time to revisit it.” The Ombudsman linked his appeal to investigations into allegedly fraudulent flood-control projects, saying more than ₱100 billion had been paid for projects that were never constructed. He stressed that these were not merely defective or incomplete projects but, according to the investigations, cases in which the infrastructure did not exist.

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5. Lawmakers seek investigation into ₱319 million in Chinese remittances to Cale88

A Philippine lawmaker has called for a national security investigation into financial transfers from China and Hong Kong to Cale88 Foods Corp., a company linked to Vice President Sara Duterte's husband, Manases Carpio. Batangas Representative Gerville Luistro, a lead prosecutor in Duterte's impeachment trial, said reports of ₱319.33 million in remittances warranted further examination because of the potential national security implications. The transactions were disclosed during the impeachment proceedings through financial records presented by the Anti-Money Laundering Council (AMLC). AMLC Executive Director Ronel Buenaventura confirmed the transfers during testimony on October 5, explaining that the figures came from transaction reports submitted by banks and other financial institutions. According to the prosecution, Carpio held a 47.5% stake in Cale88 Foods Corp., which was established in 2021. The AMLC records showed that ₱319.33 million entered the company's corporate accounts from mainland China and Hong Kong. Importantly, the funds were not recorded as direct transfers to Duterte's or Carpio's personal bank accounts. Luistro said the transactions deserved investigation, particularly given concerns about financial flows involving foreign entities. “I honestly believe this is something that should be looked into and investigated.” The prosecution also alleged that approximately ₱4.5 billion moved into and out of 15 companies associated with Duterte and Carpio between 2022 and 2025. Three remittances involving Cale88 were reportedly flagged by a bank as suspicious. Separately, the Bureau of Internal Revenue (BIR) has opened a tax investigation into Cale88. BIR official Anne Loraine Garcia-Marquez told the Senate impeachment court that the agency had issued a letter of authority to examine the company's tax records over possible undeclared sales and tax deficiencies. The inquiry follows questions about the company's reported sales and financial transactions. The BIR said civil or criminal proceedings could follow if investigators establish violations of tax law.