Michael Yang (Chinese businessman)

Chinese businessman

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|

Michael Yang

杨鸿明

Yang in 2017

Born|

Yang Hongming

Citizenship| Chinese
Occupation| Businessman
Known for| Economic advisor to President Rodrigo Duterte (2018)
Relatives| Tony (Antonio Lim) (older brother)

Yang Hongming (Chinese: 杨鸿明),[1] more commonly known as Michael Yang in the Philippines, is a Chinese businessman and is an associate of 16th Philippine President Rodrigo Duterte. Yang was linked in the Pharmally scandal which allegedly overpriced procurement contracts for medical supplies to be used by the Philippine government during the COVID-19 pandemic.[2]

## Education

[edit]

Yang claimed on his website that he attended Princeton University where he obtained a doctorate degree in business administration.[3] When asked to clarify, Yang said he obtained a "certificate" from Princeton and says that the American university runs a program through its branch in Beijing.[4]

## Background

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### Business career

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Yang is based in the Philippines for at least 20 years, starting his ventures in the country in Davao City.[5][6] He has been a permanent resident in the country.[7] He also owns the Davao City Los Amigos (DCLA).[8]

He is a member of the Philippine Chinese Chamber of Commerce Labuan, the executive director of the Philippine Chamber of Commerce, the vicechairman of China-Philippines Friendship, and the managing director of Fujian Normal University.[3]

Yang was associated with Pharmally, which was involved in a scandal regarding the procurement of medical supplies for the COVID-19 pandemic.[2]

### Political involvement

[edit]

During the presidency of Rodrigo Duterte, Yang served as the chief executive's economic advisor at least for the year 2018. This was initially denied by Duterte, as Yang held Chinese citizenship.[9] Rappler investigation through the Freedom of Information, was able to obtain from the Malacanang Records Office of an official documentation contracting Yang as an Economic Adviser.[10] According to presidential legal counsel Salvador Panelo, he was tapped for the role due to his rags to riches background, connections to the Chinese government and knowledge on Chinese culture.[8][11]

According to Duterte, Yang maintains close relations to Chinese ambassador Zhao Jianhua and is part of the Chinese delegation to China.[11][12] Despite his connections, Yang has explicitly denied being a member of the Chinese Communist Party or have influenced Duterte's foreign policy.[13]

Duterte, who is noted for his war on drugs campaign, has cleared Yang of involvement in the illegal drug trade, using Yang's very connection to the Chinese government to dissuade the allegation believing that its officials would not associate with drug lords.[6]

## Controversy

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### Pharmally scandal

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As the Covid-19 pandemic brought the Philippine economy to a lockdown, the government responded with the readjustment of the national budget under the Bayanihan to Heal as One Act. The act, which was passed by the Congress of the Philippines on March 23, 2020, and signed the following day would allow President Rodrigo Duterte to "reallocate, realign, and reprogram" a budget of almost ₱275 billion ($5.37 billion) to address the pandemic.[14]

Pharmally Pharmaceutical Company was established September 2019 with only a paid-up capital of P625,000.[15]

During the Philippine Senate hearing on the Pharmally scandal in September 2021, Yang was disclosed as the facilitator between Pharmally executives and President Duterte. Yang denied this and explained that he was sought by Pharmally executives and provided assistance to meet President Duterte in Davao.[16] As Yang was a no-show during the said senate hearing, the Senate ordered for his arrest.[17]

Huang Tzu Yen, the President of Pharmally would later disclose that Yang was the financier and guarantor of their company. Yang denied this allegation.[18]

### POGO proliferation

[edit]

Philippine Offshore Gaming Operator (POGO) business began in 2003, and significantly grew during the administration of President Duterte. POGO mainly operates an online gaming or casino license, targeting overseas players specifically in China. Duterte considered the POGO as a cornerstone of his economic policy, that during the Covid-19 Pandemic he would declare POGOs as "essential services."[19]

Yang's and his associate Lin Wei Xiong operated the Xionwei Technology Co. Ltd. in Bacoor, Cavite in August 2016, or two months into the Duterte presidency.[20][21] Xionwei Technologies came into the news as the company took over the controversial pre-POGO operations of Jack Lam's Jimei International Entertainment which was operating out of Fontana Resort in Clark, Pampanga. Lam fled the Philippines on December 2019, when his company was found out to be employing 1,316 illegal Chinese workers. Philippine Amusement and Gaming Corporation (PAGCOR) revoked Jimei's license in Fontana and Fort Ilocandia, Ilocos Norte. Yang took over Jimei's facilities early 2020.[22]

Yang's and his associate Lin Wei Xiong operated the Xionwei Technology Co. Ltd. in Bacoor, Cavite. Xionwei and another controversial POGO Lucky South 99 came out in the news in 2022 over kidnappings. The Philippine Senate investigated the matter, and the PAGCOR's CEO, Alejandro Tenco, committed to suspend the erring POGOs as well as run after illegal POGOs.[23][24]

In the 2024 Philippine Senate Committee on Women, Children, Family Relations and Gender Equality hearing on the POGO hub in Bamban, Tarlac involving Alice Guo, the Court of Appeals froze the bank account of Yu Zhengcan, jointly held with Yang Hongjiang, Michael Yang's brother. Yu is one of the incorporators of the Hong Sheng Gaming Corporation, the POGO renting in the Baofu Compound, which was incorporated by Alice Guo.[25]

### Illegal Drugs Smuggling

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Michael Yang presents a project to Pres. Duterte in Malacanang.

In August 2017, a police anti-narcotics intelligence report made by Col. Eduardo Acierto mentioned Michael Yang and his associate Lin Wei Xiong (also known as Allan Lim) as the operator of a number of methamphetamine laboratories around Mindanao. Methamphetamine is locally known as "Shabu."[26][27] The said report was then furnished to Philippine National Police Chief Ronald "Bato" dela Rosa, Philippine Drug Enforcement Agency (PDEA) Director Aaron Aquino, Police Deputy Director General Camilo Cascolan, as well as to Senator Richard Gordon, Executive Secretary Salvador Medialdea, and former Special Assistant to the President Christopher “Bong” Go.

Acierto mentioned that he submitted this report to warn President Duterte of his association with Yang. In a twist of events, on October 2018 Duterte tagged Acierto as one of the police officials who was involved in the illegal drug trade, and implicated him in the PhP 11 billion shabu haul concealed in magnetic lifters at the Manila International Container Port and in Cavite. Acierto was one of the police officials who was involved in the said raid which was the biggest drug haul in Philippine history. Acierto would go into hiding until 2024, as the Duterte administration would put a P10 million bounty on his head.[28] Acierto would later tag Pres. Duterte, CPNP Dela Rosa, Bong Go, PDEA Director Aquino as protectors of Yang.[29]

On November 2021, former Davao police investigator and self-confessed member of the Duterte Death Squad (DDS), Arturo Lascanas, gave an affidavit to the International Criminal Court (ICC), and pointed that Chinese businessmen who were close to then Mayor Rodrigo Duterte, Charlie Tan, Sammy Uy, and Michael Yang, were involved in drugs smuggling in Mindanao. Tan was previously named by former Senator Panfilo Lacson of being part of the "Davao Group" along with presidential son and Congressman Paolo "Polong" Duterte. The Davao Group, Lacson said, wielded strong influence over the Bureau of Customs (BOC). Paolo Duterte denied this but admitted that Charlie Tan was a drinking buddy. Lascanas also disclosed in his affidavit that former PNP Chief Dela Rosa, as well as PDEA Director Wilkins Villanueva, were "enablers" of the illegal drug trade. Yang denied this claim. PDEA Chief Villanueva also said during a succeeding Senate hearing that if Yang were involved in illegal drugs, he would have been long dead. Yang's lawyer, Raymond Fortun commented that Lascanas' claims are "without factual basis."[30][31] The 186-page affidavit submitted by Lascanas to the ICC repeatedly mentioned that Duterte and Yang have operated methamphetamine laboratories around Mindanao.[26]

On September 27, 2023, the PDEA, BOC, the National Bureau of Investigation (NBI), and the Bureau of Immigration (BI), conducted a joint operation in Bgy. San Jose Malino, Mexico, Pampanga, and raided a warehouse that netted the largest drug haul of the Marcos administration. Some 530 kilograms of Shabu was discovered, with a street value of PhP 3.6 billion.[32]

During the investigation, the warehouse was identified to be owned by Empire 999 Realty Corporation, and the land where it was built was purchased from the brother of the former Mayor of Mexico, Pampanga, Teddy Tumang.[33][34] The Philippine House of Representatives Quad Comm began reviewing on this drug haul May 2024.[35]

On July 6, 2024 the Securities & Exchange Commission revoked the registration of Empire 999, and the board members disqualified to sit on the board of any corporation for the next five (5) years.[36]

## Personal life

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Michael Yang has an older brother named Yang Jianxin, who also goes by the name Antonio Maestrado Lim. The elder Yang is a businessman based in Cagayan de Oro. Also a Chinese citizen, the elder Yang is found to have in possession of Philippine identity documents for himself.[37][38]

## References

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1. ^ Ranada, Pia (October 10, 2018). "LOOK: Michael Yang's calling card bears Malacañang seal". Rappler. Archived from the original on July 15, 2024.
2. ^ a b Lalu, Gabriel Pabico (May 13, 2024). "Ako Bicol rep wants ex-adviser explain frequent links to anomalies". Philippine Daily Inquirer. Retrieved July 17, 2024.
3. ^ a b Tordesillas, Ellen (October 8, 2018). "Michael Yang is presidential economic adviser". Vera Files. Retrieved July 17, 2024.
4. ^ Ramos, Christia Marie (October 28, 2021). "Yang's Princeton degree raises eyebrows among senators". Philippine Daily Inquirer. Retrieved July 17, 2024.
5. ^ Parrocha, Azer (August 31, 2021). "Michael Yang has been in business in PH for 20 years: PRRD". Philippine News Agency. Retrieved July 17, 2024.
6. ^ a b "Duterte clears Davao City businessman of drug links". GMA News. October 5, 2018. Retrieved July 17, 2024.
7. ^ Pazzibugan, Dona Z. (November 26, 2021). "Former Duterte adviser asks SC to stop Senate arrest". Philippine Daily Inquirer. Retrieved July 17, 2024.
8. ^ a b Lopez, Virgil (November 6, 2018). "Palace admits Chinese trader Michael Yang a consultant for Duterte". GMA News. Retrieved July 17, 2024.
9. ^ Corrales, Nestor (October 9, 2018). "Duterte denies Chinese businessman is his economic adviser". INQUIRER.net. Retrieved September 20, 2024.
10. ^ Ranada, Pia (November 5, 2018). "Malacañang contracts show Michael Yang is economic adviser". RAPPLER. Retrieved September 20, 2024.
11. ^ a b Panti, Llanesca (October 9, 2018). "Duterte denies appointing Davao-based Chinese trader as his envoy". GMA News. Retrieved July 17, 2024.
12. ^ Sy, Marvin (October 20, 2018). "Leila De Lima: 'Probe Michael Yang'". The Philippine Star. Retrieved July 17, 2024.
13. ^ Ramos, Christia Marie (November 4, 2021). "Yang denies being Chinese communist agent, influencing Duterte's China policy". Philippine Daily Inquirer. Retrieved July 17, 2024.
14. ^ Parrocha, Azer (March 22, 2020). "Duterte seeks 'more powers,' urgent measures vs. Covid-19". Philippine News Agency. Retrieved September 21, 2024.
15. ^ Peralta-Malonzo, Third Anne (September 20, 2021). "TIMELINE: Senate probe into irregularities in Covid-19 funds use". SunStar Publishing Inc. Retrieved September 21, 2024.
16. ^ Ramos, Christia Marie (September 10, 2021). "Yang denies ties with Pharmally but admits firm sought his 'assistance'". INQUIRER.net. Retrieved September 20, 2024.
17. ^ Ramos, Christia Marie (September 7, 2021). "Senate orders arrest of ex-Duterte adviser, Pharmally execs; Yang 'apologizes' for absence". INQUIRER.net. Retrieved September 20, 2024.
18. ^ Perez-Rubio, Bella (September 13, 2021). "Michael Yang, named as Pharmally backer, skips Senate hearing over blood pressure". Philstar.com. Retrieved September 20, 2024.
19. ^ Palatino, Mong (June 1, 2020). "China's Clandestine Gamble in the Philippines". thediplomat.com. Retrieved September 20, 2024.
20. ^ Ranada, Pia (September 9, 2021). "Michael Yang, associates expand businesses under Duterte presidency". Rappler. Retrieved September 20, 2024.
21. ^ Standard, Manila (August 24, 2019). "No Chinese firms running POGOs, PAGCOR claims". Manila Standard. Retrieved September 20, 2024.
22. ^ "Michael Yang, POGO's secret kingpin: Ex-Duterte adviser revives Jack Lam's Fontana casino into offshore gaming hub - Bilyonaryo Business News". bilyonaryo.com. February 12, 2020. Retrieved September 20, 2024.
23. ^ "Al Tengco to weed out bad apples: Michael Yang in danger of losing POGO license amid crack down on rogue firms". bilyonaryo.com. September 15, 2022. Retrieved September 20, 2024.
24. ^ "War for workers: Police tag POGO with alleged ties to ex-Duterte adviser in kidnappings". politiko.com.ph. September 15, 2022. Retrieved September 20, 2024.
25. ^ Buan, Lian (July 15, 2024). "Tarlac POGO's money trail links to brother of Duterte's Chinese adviser". RAPPLER. Retrieved September 20, 2024.
26. ^ a b OCCRP, in partnership with Rappler. "Philippine President Duterte's Former Economic Adviser was a "Drug Lord," Says Affidavit in New ICC Case". OCCRP. Organized Crime & Corruption Reporting Project. Retrieved October 1, 2024.
27. ^ "Ex-Police Official Accuses Two Duterte Associates of Drug Crimes". New York Times. March 3, 2019. Retrieved October 1, 2024.
28. ^ Peralta-Malonzo, Third Anne (March 26, 2019). "Dismissed cop tags 2 Chinese nationals close to Duterte as drug lords". SunStar Publishing Inc. Retrieved October 1, 2024.
29. ^ "Amid Denials: Bato, Go, PDEA's Aquino 'protecting' Michael Yang's group, says Acierto". GMA News Online. April 6, 2019. Retrieved October 1, 2024.
30. ^ Jazul, Leanne (November 11, 2021). "DDS insider links Rodrigo Duterte, Michael Yang to drug trade". Rappler. Retrieved October 1, 2024.
31. ^ Jazul, Leanne (November 12, 2021). "Davao shabu lab raid: 'Eliminate them all'". Rappler. Retrieved October 1, 2024.
32. ^ Torres-Tupas, Tetch (September 28, 2023). "P3.6-B worth of shabu seized in Pampanga warehouse". INQUIRER.net. Retrieved October 1, 2024.
33. ^ Lalu, Gabriel Pabico (October 9, 2023). "Land where Pampanga 'shabu' warehouse stood was owned by ex-mayor's bro". INQUIRER.net. Retrieved October 1, 2024.
34. ^ Manabat, Joann- (October 12, 2023). "Ousted Pampanga town mayor says politics behind implication in P3.6-B drugs seized". Rappler. Retrieved October 1, 2024.
35. ^ Valmonte, Kaycee (May 14, 2024). "House panel assures public 'credible resource persons' invited to drug trade probe". Rappler. Retrieved October 1, 2024.
36. ^ "Order of Revocation SEC EIPD Case No. 2024-7722" (PDF). Securities & Exchange Commission. Retrieved October 1, 2024.
37. ^ Manahan, Job (September 20, 2024). "Michael Yang's brother could be trying to flee PH - PAOCC". ABS-CBN News. Retrieved September 24, 2024.
38. ^ Gallardo, Froilan (September 24, 2024). "Senate to probe Tony Yang's business interests, including a POGO, in Mindanao". Rappler. Retrieved September 24, 2024.