CEBU CITY – Foreign designations of the Communist Party of the Philippines–New People’s Army (CPP-NPA) became the only basis of government prosecutors in filing the terrorist financing case against the Community Empowerment Resource Network (CERNET). 

Deputy State Prosecutor Peter Ong Peter Ong appeared before the court as a witness in the third hearing of CERNET 27 at the Cebu City Regional Trial Court Branch 74 on July 31, 2025. Ong presented foreign designations from countries like the United States of America (USA), New Zealand, and European Union (EU), which declared the CPP-NPA as a terrorist group. 

Designation is a key to the case of CERNET 27. Under Republic Act No. 10168 or the Terrorism Financing Prevention and Suppression Act, a “designated person” is defined as anyone identified as a terrorist, a financier of terrorism, or a terrorist organization. To prove a violation under Section 8(ii), it must be shown that a person or entity made property, funds, or financial services available to such a designated person or group.

Under Proclamation No. 374 dated December 5, 2017, former president Rodrigo Duterte declared the CPP-NPA as an entity designated as a terrorist group. During the hearing, the defense team of CERNET 27 argued that the allegation of terror financing happened in September 2012, nearly five years before the said designation.

In August 2023, CERNET 27 received subpoena of terrorist financing allegations based on a recommendation letter filed by Brig. Gen Joey Escanillas without any formal complaints. After documenting other irregularities in the filing of the alleged terrorist financing case, Visayas NGO leaders sued prosecutors for gross negligence and abuse of power in the middle of legal battle.

In an exclusive interview with legal counsel Kristian Jacob Lora, these foreign designations were not included in the endorsement letter submitted by Escanillas. 

“As what was made clear earlier in the hearing, the prosecuting panel, headed by Deputy State Prosecutor Peter Ong, admitted that as early as 2018, they already had in their possession designations foreign terrorist lists from foreign jurisdictions,” he said.

Designation in the dark

In a previous Bulatlat report, Escanillas alleged CERNET engaged in a ‘40-60’ scheme with their partnered organizations with 60 percent going to the communist movement and only 40 percent reaching the intended beneficiary. The same alleged scheme was mentioned by Kent Liwag from the Philippine Navy, to convince a Cebuano environmental leader to disassociate with CERNET during Water Search and Rescue (WASAR) training.

In a report by SunStar Cebu, the second hearing revealed that the Anti-Money Laundering Council (AMLC) failed to provide evidence during the second hearing to prove CERNET’s association with a designation of persons or entities. Prior to that, the Securities and Exchange Commission (SEC) confirmed the consortium’s legitimacy.

In Bulatlat report on August 4, 2025, the Visayas NGO leaders and members of the accused stated that CERNET 27 was prevented from submitting further evidence while the DOJ prosecutors continued to gather evidentiary documents to support Escanillas’s letter of endorsement.

“Our clients were not able to question or respond to those designations, which are very material to the case,” legal counsel Lora said.

Element of surprise

Ong was not supposed to testify on the third hearing. It was supposed to be a certain Jerome M. Inciong, a videographer from the Philippine Airforce of Civil Relations Service, according to legal counsel Susan Chavez. He allegedly possessed a certain video footage from Negros as evidence. As for the content of the footage, Chavez told Bulatlat they’re yet to know.

During cross-examination, the defense for the CERNET 27 pressed Ong on when he learned he would testify, to which he maintained it was only on the same day.

Out of 17 prosecution witnesses, 14 have yet to testify, and it remains unclear who will take the stand next. Asked by Bulatlat if such uncertainty and sudden changes could affect the proceedings, “Regardless, we prepared for this,” said Chavez.

Presiding Judge Marlon Jay G. Moneva will be on study leave until June 2026, prompting the assignment of a parallel judge to handle proceedings in the meantime. The next hearing has yet to be scheduled. (RVO)