[Media Monitor] What Rappler tells us of Michael Yang
- Timothy Gerard Palugod
- Apr 3, 2019
- 4 min read
Dutere and Yang (Photo grabbed from baike.com)
A week ago on March 25, the dismissed deputy of a reorganised anti-illegal drugs task force revealed he had submitted an intelligence report implicating a Chinese businessman in the illegal drug trade. Businessman Michael Yang, who was defended by the President in 2018 after being accused of addiction, identified himself as the Government's presidential economic adviser. Former Philippines National Police Anti-Illegal Drug Group (PNP-AIDG) deputy director Eduardo Acierto, on the other hand, had been hiding from authorities after being accused of smuggling two shipments of methamphetamine on October 2018 and recycling confiscated drugs from police operations.
While the Government has discredited Acierto based on the allegations and claiming the opposition is using him against Philippine President Rodrigo Duterte, there is much to unpack about Yang. Here's what Rappler tells us:
Duterte and Yang
The President had deflected allegations that Yang was a drug addict or a drug pusher on 4 October 2018, based on a dossier he received from the police. He cited the following as proof of Yang's clean record:
Chinese ambassador to the Philippines Zhao Jianhua has slept in Yang's residence in Makati City.
Yang was included in Chinese Premier Li Keqiang's entourage in Manila in November 2017.
Yang has long resided in Davao City, where Duterte was mayor from 2001 to 2010.
Yang established the retail business Davao City Los Amigos (DCLA) in Mindanao in 2003.
Yang's Chinese descent disqualifies him from being a presidential economic adviser. Rappler's Pia Ranada contextualised Duterte's argument as referring to his Chinese citizenship, with three anonymous sources backing her report.
Six days later, Ranada published an investigative report showing photos of Yang's extravagant office in Makati that confirmed his position as "Presidential Adviser for Economic Affairs." Yang's calling card even bore the official seal of the Office of the President of the Philippines, despite a law excluding its use to only the president. His website opea.com has been inaccessible after the issue grew on social media.
Ranada cited Executive Order 310, which states the presidential seal is to be used only by the president. EO 310 explicitly stated that using the seal on business cards is strictly prohibited, and individuals who shall violate this rule will face administrative, civil, and criminal charges. Despite the backlash and sanctions available, Yang has not been charged for this violation.
There are other instances indicating that Duterte and Yang have a close-knit relationship, and that he is involved in various government functions.
A Friends of the Philippines Foundation luncheon for a donated P500-million drug rehabilitation center in Bukidnon was attended by the President, Yang, and the foundation's chairman Jose Kho at Dadong Roast Duck Restaurant. This was during Duterte's first state visit in Beijing.
The Philippines-China Trade and Investment Forum in February 2017 was attended by Yang and Ambassador Zhao, among others.
The Boao Forum for Asia, which was held in Hainan, China on April 2018, was attended by Duterte, his daughter Sara who replaced him as mayor of Davao City, and Yang.
Yang attended the President's 73rd birthday celebration and gave him a Chinese calligraphic art and a traditional Chinese painting due to Duterte's growing interest in China's culture and history.
Duterte visited Yang's "Fu De Sheng/Full Win" headquarters in Xiamen between November or December in 2015, the time when he declared his presidential bid.
Yang, under the Philippine Friendship Fund which he is reportedly the vice chairman of, jointly donated P700 million for drug rehabilitation centres in the Philippines.
Yang attended the state banquet during President Xi Jinping's visit on 20 November 2018.
Detained senator Leila de Lima, who was charged over allegations of her involvement in the illegal drug trade and dealings in a correctional facility, urged the Senate on 19 October 2018 to probe Yang's influence over foreign policy and possible violations of law wherein only Philippine citizens are eligible to be appointed into a government position. Finance Secretary Carlos Dominguez III denied that Yang was being consulted on economic matters.
Regardless of reiterated denials from the President, Presidential Spokesperson Salvador Panelo on 06 November 2018 confirmed that Yang is "one of those advisers that the President consults on a particular matter." He argued that Yang's appointment is allowed, given he only worked as a consultant.
Yang's contract
But through the Freedom of Information system, Ranada reported that two contracts "for Expert and/or Technical Services" from Malacanang indicated that Yang held the position of Economic Adviser to the President.
The first contract noted that Yang will provide administrative, advisory, consultative, and other support services to the President from 01 January 2018 to 30 June 2018, with a compensation of P1.oo per annum. Yang may also be assigned to other tasks and perform other duties under the discretion of the President. The contract, arguably, states that Yang's services are not considered as government service and there is no employer-employee relationship between Duterte and Yang.
The second contract renews Yang's services for 01 July 2018 to 31 December 2018. This means Yang had offered consultation services for one year and the position has been given to a foreigner without public bidding, which is required under Republic Act 9184.
Ranada argued that hiring a foreign consultant must have substantial reason, according to Commission on Audit's (COA) rules. She recalled COA asked the Department of Trade and Industry in 2015 for an explanation on why they hired a foreign consultant, noting there should be proof that no Filipino consultant is capable of doing the services being sought by the Government.
It is clear from Yang's position, his special office, his usage of the presidential seal, and his activities with the Government that he is performing the functions of a government official.