NBI details alleged P300-million extortion case vs. Franco Mabanta, PGMN

The National Bureau of Investigation (NBI) defended its arrest of Peanut Gallery Media Network (PGMN) founder Franco Mabanta and four others over an alleged extortion scheme involving former House Speaker Martin Romualdez.

According to "Kapuso Mo, Jessica Soho," authorities said the group allegedly demanded hundreds of millions of pesos in exchange for not releasing a supposed documentary linking Romualdez to controversial flood control projects.

Mabanta and his camp denied the allegations and insisted the operation was a "setup."

The case gained public attention after videos of the NBI entrapment operation circulated online. The operation led to the arrest of several individuals inside a Makati building after agents delivered bags containing supposed "marked money."

In an interview with Jessica Soho, NBI Director Melvin Matibag said the bureau began surveillance after receiving a complaint from Romualdez's camp.

"Nagkaroon po kami ng surveillance after makatanggap po kami ng reklamo ng pangingikil," Matibag said. "'Yun nga pong may-ari ng PGMN, Peanut Gallery Media Network, na nanghihingi ng malaking halaga sa ating dating Speaker Martin Romualdez."

["We conducted surveillance after receiving a complaint regarding extortion. Specifically, it involves the owner of PGMN, Peanut Gallery Media Network, who is demanding a large sum of money from our former Speaker, Martin Romualdez."]

According to Matibag, the complaint affidavit was filed by one of Romualdez's representatives, although he said there was coordination with the former House Speaker regarding the matter.

What went down

The supposed extortion centered on a supposed 90-minute documentary that PGMN allegedly claimed would expose Romualdez's involvement in the flood control controversy.

"Ang threat po is 'Ilalabas namin 'yung damaging na video against sa'yo,'" Matibag said. "Ninety minutes daw po na video."

["The threat was, 'We will release a damaging video against you,'" Matibag said. "They claim it is a 90-minute video."]

Matibag said the original demand was allegedly P350 million before it was reduced to P300 million after negotiations. The payment was supposedly arranged in four tranches, with the first transfer amounting to P75 million.

To monitor the alleged transaction, an undercover NBI agent identified only as 'Homer' posed as an associate of Romualdez.

"Ako na 'yung undercover posing as associate or staff of Cong. Romualdez," 'Homer' said. "Then binigay sa akin 'yung number, 'yung Franco, then nag-usap na kami."

["I acted as the undercover agent posing as an associate or staff member of Cong. Romualdez. Then I was given the number for 'Franco,' and we started talking."]

'Homer' said Mabanta's camp allegedly sent a three-minute teaser of the documentary to prove that the material existed.

"Napanood ko 'yung teaser," 'Homer' said. "So mas lalong napa-convince kami that there's actually a crime na being committed."

["I watched the teaser. So we became even more convinced that a crime was actually being committed."]

He added that the teaser portrayed Romualdez as a "mastermind or central figure sa corruption sa House."

However, the NBI admitted it could not confirm whether a full 90-minute documentary actually existed.

"Possible na baka wala rin talaga," 'Homer' said. "Baka it's just a form of pang-harass lang to make them to play and give it to their demands."

["It's possible that there might not actually be a video. It might just be a form of harassment to force them to play along and give in to their demands."]

The operation later moved to Makati, where the supposed handoff was arranged. 'Homer' alleged that Mabanta refused to receive the money personally due to the presence of CCTV cameras and instead instructed them to deliver it elsewhere.

The NBI said it followed instructions sent through text messages and proceeded to another location where masked individuals allegedly received the bags containing the money.

John Consulta, who accompanied the NBI during the operation, said media personnel were asked to stay at a distance while agents waited for the signal.

"To our surprise pagpasok sa loob ng kuwarto, lo and behold nandu'n din si Franco Mabanta," Consulta said.

["To our surprise, upon entering the room, lo and behold, Franco Mabanta was also there."]

'Homer' said Mabanta was arrested after agents confirmed that the bags had been received inside the room.

"'Yung presence ng maleta po, 'yun ang determining factor po sa amin na nandu'n 'yung pera," the agent said.

["The presence of the suitcase was the determining factor for us that the money was inside"]

The NBI also addressed questions regarding the money used during the operation. Matibag clarified that most of the cash shown in videos was "budol money" or fake money commonly used in entrapment operations.

"Hindi po 75 million actual na dala," Matibag said. "'Yung ibabaw lang po ang totoo, 50 thousand po 'yun."

["We didn't actually bring 75 million. Only the top layer was real money, which amounted to 50 thousand."]

He added that the use of such money had already been recognized by the Supreme Court in entrapment cases.

Aside from Mabanta, those arrested included financial consultant and investor Ericson James Pacaba, businessman John Alexander Vasquez Gomez, advertising specialist Jardine Christian Requio Serrano, and Franco Jose Gallardo.

'We're innocent'

Following the arrests, Mabanta denied the allegations during a media interview.

"No! It's not true," Mabanta said when asked if they extorted Romualdez. "We're innocent."

He maintained that the incident was a set-up.

Mabanta's legal representative, Atty. Bernice Piñol-Rodriguez, likewise questioned the strength of the complaint.

"What I can only say is that we're very confident of our case," she said. "The complaint actually is quite weak. The evidence attached is weak."

She also denied claims that the incident involved extortion.

"Oh, it's not extortion. It's not extortion at all," the lawyer said.

Piñol-Rodriguez added that a video being discussed publicly would be released "in the proper time."

Romualdez's camp, meanwhile, maintained that Mabanta attempted to extort the former House Speaker.

The issue also drew political attention after some observers linked the arrest to other recent cases involving personalities associated with former President Rodrigo Duterte.

Asked about claims that the arrests were politically motivated, Matibag rejected the accusation.

"It's a very unfair accusation po or allegations sa mga taga-NBI," he said. "We will always be guided by facts and the law and the procedure."

He added that the bureau invited media organizations during the operation to help ensure transparency.

"Hinding-hindi po setup," Matibag said. "Inimbitahan po namin 'yung mga taga media para mag-obserba po dito."

["This was absolutely not a setup. We invited members of the media to observe the proceedings."]

The NBI has already filed complaints for robbery with intimidation through extortion in relation to the Cybercrime Prevention Act against Mabanta and the other respondents.

Matibag also said investigators are still examining gadgets and evidence seized during the operation to determine whether more individuals could face charges.

Meanwhile, Danilo Arao said the case should not automatically be viewed as an attack on press freedom if the allegations involve extortion.

"Ang nangyari kina Mabanta ay hindi banta sa kalayaan sa pamamahayag sa simpleng dahilan na ang krimen nila ay extortion," Arao said.

["What happened to the Mabantas is not a threat to press freedom for the simple reason that their crime is extortion."]

He also criticized what he described as irresponsible practices in some online media platforms.

"Walang matinong news media organization 'yung maglalako ng video o anumang journalistic output para sabihin na bigyan mo ako ng pera tapos hindi ko i-eere ito," he added.

["No decent news media organization would peddle a video or any journalistic output just to say, 'Give me money and then I won't air this'"]

This Saturday afternoon, after posting bail in the amount of 120,000 pesos and following the issuance of a release order by the Pasig RTC Branch 167, Franco Mabanta and his four companions were temporarily released from detention. —JCB, GMA News