The Armed Forces of the Philippines (AFP) on Tuesday said it is looking into the possibility that the alleged illegal steel manufacturing plant in Tagoloan, Misamis Oriental, where 69 undocumented Chinese nationals and one Filipino were arrested, could be part of a larger web of foreign deceptive activities in the country.
Operatives from the National Bureau of Investigation, Presidential Anti-Organized Crime Commission, and AFP recovered explosive and prohibited hazardous materials, including urotropine and tungsten. Defense Secretary Gilberto Teodoro Jr., who flew to Tagoloan on Saturday, said the plant was owned by Chinese businessman Tony Yang, previously linked to Philippine offshore gaming operator operations.
“As to the possibility that this could be part of a bigger web, we have to step back and look at it on a macro level,” AFP spokesperson for the West Philippine Sea Rear Admiral Roy Vincent Trinidad said during a press briefing at Camp Aguinaldo. He noted authorities had previously apprehended Chinese nationals using fake Filipino identities and alleged spies conducting unauthorized mapping operations.
Trinidad said the case could be linked to foreign interference and malign influence operations, considering the involvement of Chinese nationals and Filipino workers. He added that authorities are examining surrounding circumstances, including the establishment of a 300-hectare Naval Operating Base and dockyard inside the PHIVIDEC Industrial Estate in Tagoloan, which will serve as the Philippine Navy’s largest facility in Mindanao.
AFP spokesperson Col. Francel Margareth Padilla said the military provided security and operational support during the implementation of the search warrant. She said the operation was the latest development in a two-year investigation into Philippine Sanjia Steel Corp. for alleged violations of Philippine laws and noted the site had already been flagged in September 2024 due to alleged links to offshore gaming operations.
The Chinese Embassy in Manila on Wednesday said its “paramount concern” is the safety and welfare of its nationals and called on Philippine authorities to handle the case fairly and in accordance with Philippine laws. Embassy Deputy Chief Zhou Zhiyong urged humane treatment for the detained Chinese nationals and questioned why more than 300 Filipino workers were released while the Chinese workers remained in custody.
Meanwhile, Philippine Sanjia Steel Corp. criticized the operation conducted by the PAOCC and NBI, calling it “harassment” and demanding the reopening of the plant and release of its workers. The company denied links to Tony Yang and illegal gaming operations, saying no servers or gaming equipment were recovered during the raid.
The Department of National Defense on Wednesday commended government forces involved in the operation against the Sanjia complex. Teodoro said authorities uncovered “grave crimes” allegedly committed by the Chinese principals of the company and announced a thorough investigation into the Philippine Veterans Investment Development Corp. in connection with the incident.
The Office of Civil Defense in Northern Mindanao said profiling and validation of affected workers are ongoing through the Department of Social Welfare and Development, Department of Labor and Employment, and Department of Health. The DND also warned individuals against interfering with the ongoing investigation, saying legal action would be taken against those attempting to obstruct justice.
