REBUTTAL TO GGDC ALLEGATIONS
During the week of 8 September a barrage of articles hit various media outlets throughout the Philippines concerning a dispute over the development of the Global Gateway Logistics City (GGLC) Project at the Clark Freeport Zone, Pampanga. These articles contained untrue statements and unsubstantiated allegations. They were released and heavily biased against the developer and prime contractor, Peregrine Development International (Peregrine), an American owned firm. Not a single outlet contacted Peregrine for comment before these articles were published.
At issue is a dispute between Peregrine and the project owner, Global Gateway Development Corporation (GGDC) who committed to fund and finance the 177 hectare green-field site adjacent to the Clark International Airport that has become known as GGLC. It is important to know that Peregrine conceived the project in 2006 and paid 20,000 US Dollars for the right to develop the site. Through 2007, Peregrine conducted environmental and land use studies, developed a master plan and financial models and sought out third party investors. In the course of this search Peregrine identified and selected the Kuwait group known as KGL. One of the affiliates of KGL, KGL Investment Company (KGLI) then agreed to carry the investment. The parties then memorialized their agreement in an Engineering Procurement Construction Management (EPCM) contract in 2008 which stipulated that Peregrine would retain exclusive rights to be the developer and prime contractor while KGLI would fund and finance the project for the duration of the 50 year lease. KGLI initially funded the project through a private equity fund called The Port Fund (TPF) and a local entity established in the Philippines, GGDC.
A dispute arose over a notice of termination that GGDC sent to Peregrine in April. The EPCM contract does mandate that all disputes were subject to arbitration. This is a key point since Philippine law does recognize the authority of arbitration tribunals, which has now been legally constituted in Singapore. Thereafter, in May, GGDC filed for Arbitration in Singapore.
UNSUBSTANTIATED ALLEGATIONS – FACT CHECK
Statement: The press releases recently published in local and national papers failed to verify and fact check certain information or contact Peregrine for comment. Consequently, we feel that these have mislead the public to have a very wrong impression of Peregrine, much to its damage and prejudice. For example, this past week stated that GGDC had assumed “operational control” of the 177-hectare GGLC project in Clark after obtaining a favorable ruling from the Court of Appeals against project developer and contractor, Peregrine. This takeover was allegedly based on a 60 day Temporary Restraining Order issued by the Court of Appeals. However upon a thorough reading of the TRO one learns that the Appeals’ Court TRO only temporarily set aside for 60 days the previous rulings of the Regional Trial Court (RTC) where Peregrine had initially filed its complaint. The articles failed to note that Peregrine had filed, and is still pending an Urgent Motion for Reconsideration (MR). They also failed to point out what the CA TRO did or did not do. Please consider the following.
Fact Check: On 12 August 2014, the Court of Appeals, upon GGDC’s application, issued a Temporary Restraining Order to enjoin the enforcement of the RTC’s orders, to wit: “WHEREFORE, after deliberating on the petition for certiorari with application for temporary restraining order and preliminary injunction and supplement filed by petitioner Global Gateway Development Corporation (GGDC), the Opposition and Supplemental Opposition filed by private respondent Peregrine Development International, Inc., the Reply of petitioner and Consolidated Comment of private respondent, this Court Resolved to GRANT the petitioner’s application of temporary restraining order and ISSUE A TEMPORARY RESTRAINING ORDER, as prayed for, which shall be effective for sixty (60) days from filing and approval of the required bond, enjoining and preventing respondents from implementing the assailed Orders dated June 13, 2014 and June 27, 2014 as well as the writ of preliminary injunction dated June 30, 2014 issued by respondent Judge Omar T. Viola in SCA Case No. 14-480 entitled, “Peregrine Development International, Inc., versus Global Gateway Development Corporation”, and from conducting further proceedings in said case as well as in the related case of petition for indirect contempt in Case No. SCA 14-483. Petitioner is directed to post a bond, within a non-extendible period of five days from receipt of this resolution, in the amount of Ten Million Pesos (P10,000,000.00) executed by private respondent to the effect that petitioner will pay to such party all damages that the latter may sustain by reason of this TRO if this Court should finally decide that petitioner was not From the foregoing, it is evident that:
1. The CA’s TRO is only effective for sixty (60) days. Thus, it is only temporary.
2. It DID NOT permanently nullify or set aside the orders issued by the RTC. The said orders simply may not be enforced at this time. Indeed, it is possible that the CA may ultimately rule on the MR to affirm or uphold the RTC orders.
3. The CA DID NOT direct Peregrine to vacate the GGLC project site or remove it from possession.
4. The CA DID NOT authorize GGDC to take over the project site.
5. The CA DID NOT give license to GGDC to bring in new contractors, security force, or other workers to the project site.
6. The CA DID NOT rule that the EPCM Agreement has been validly terminated. This is a matter that has to be resolved by the Arbitral Tribunal in Singapore, a proceeding that has been initiated. The issue of the validity of the alleged termination was brought to the Arbitral Tribunal by GGDC itself. It is stressed that the CA’s TRO only enjoins the RTC orders from being implemented. However, this DOES NOT mean that Peregrine no longer has any right under the EPCM Agreement. Again, this will only be resolved in arbitration. GGLC has no final legal court order or arbitral award, hence it has no right to disregard or throw away Peregrine, who has a contractual right to be the sole developer and prime contractor. For six years, Peregrine has been the sole EPCM contractor for the GGLC project. GGDC has no legal right to introduce new contractors or usurp the rights of Peregrine as the exclusive developer and prime contractor.
Statement: In many of the press releases this past week, GGDC cited alleged breaches by Peregrine including cost overruns, dealings unbeneficial to GGDC, the use of GGDC-funded assets for non-GGDC projects, failure to comply with applicable laws which materially affected the project’s implementation, failure to faithfully observe the procurement and bidding procedures to ensure competitive bidding, and willfully committing other acts inimical and adverse to the best interest of GGDC. Had these allegations been fact checked and looked into more closely, it would never have been printed.
Fact Check: Peregrine vehemently denies the allegations made by GGDC. The truth is, for the past six years GGDC has evaluated Peregrine’s performance on a quarterly basis based in large part based on monthly independent audits that GGDC itself conducts. These quarterly performance evaluations of Peregrine by GGDC reflect ratings of 100% for the last 10 consecutive quarters through the first quarter of 2014. The evaluations are based on Peregrine’s strict adherence to Schedule, Cost Control, Value-Added and Overall Performance. The cumulative average for all six years, through the first quarter of 2014, of Peregrine’s performance rating from GGDC is 96.8%. This fact cannot be denied by GGDC as it is supported by monthly budget, cost and independent audit reports and on site ocular visits. Further, GGDC has also asserted and certified, each and every year, in their annual GGLC project audited financial statements that they “are free from material misstatements whether due to fraud or error”. When taken together, GGDC monthly audits, their own audit certifications and their evaluation of Peregrine each and every quarter that their allegations are blatantly false, especially considering that their quarterly evaluations are not gratuitous as they equate directly to financial incentives that GGDC then must pay to Peregrine. A simple fact check of the audit reports and GGDC’s own Award Fee reports demonstrates that the GGDC allegations are baseless.
Peregrine’s stellar six year cumulative track record of 96.8% with the last ten successive quarters through the first quarter of this year rated at 100% seriously call into question GGDC’s statements that Peregrine has a history of contract violations and breaches. There have been NO cost overruns, NO use of GGDC assets for non-GGDC projects, NO failure to faithfully observe the procurement and bidding procedures to ensure competitive bidding, NO failure to comply with applicable laws or regulations, and NO willfully committing other acts inimical and adverse to the best interest of GGDC. There is not one single incident, example or proof that GGDC can offer. A simple fact check of the GGDC audited and certified GGLC financial statements, audited monthly budget, cost and audit reports and Award Fee evaluations will substantiated that Peregrine does not have a history of contract violations and breaches, not one single incident.
Similarly, on closer scrutiny of the termination notice sent by GGDC to Peregrine in April 2014, readers would quickly realize that the only reason cited in the termination notice was that the EPCM agreement was being terminated unilaterally because 51% of GGDC’s ownership had supposedly been sold to an alleged third party. There was no mention of any performance issues, impropriety, irregularity, contract violations or breaches or any wrong doing by Peregrine at that time. The allegations of breaches were belatedly made by GGDC over six weeks later, and only after Peregrine contested GGDC’s attempt to terminate the EPCM agreement as illegal and invalid.
Statement: Many of the press releases this past week also stated that Peregrine failed to abide by the termination of the agreement and has reportedly caused millions of dollars of unnecessary losses to GGDC. Peregrine rejects GGDC’s allegations because in fact, it was GGDC who failed to abide by the terms of the contract when it inappropriately issued its termination notice. In reality, it is Peregrine that is, and continues to be, seriously and irreparably harmed by the illegal and invalid termination of the EPCM contract by GGDC.
Fact Check:Further to GGDC’s improper and invalid termination, on June 3rd maliciously removed over a million US Dollars from the Working Capital Account (WCA) that was used to fund and finance the project. This money was previously budgeted, allocated and approved by GGDC, including over a million of this for ongoing construction work that had been performed on the Medical City hospital. A review and audit of the WCA checking account will illustrate that on June 3rd millions dollars was in fact withdrawn by GGDC. It was GGDC’s own unilateral act that caused 14 checks previously drawn on the account to immediately bounce for insufficient funds. In good faith, and with hope that issues could be resolved, Peregrine continued to fund work through June and July using its own funds. Notably, while Peregrine had been granted a Writ of Preliminary Injunction by the RTC of Angeles that required GGDC to reconstitute the status quo, GGDC refused to comply. In August, Peregrine was left with no choice but to suspend all work and to lay-off 170 workers. It was a sad event to layoff so many loyal workers because the investor, GGDC, not only stopped funding the project, but took back over a million dollars on June 3rd that had been previously budgeted, authorized and approved for work. The layoffs were the direct result of GGDC withdrawing all the funds from the WCA and their continued refusal to comply with the RTC orders to reconstitute the status quo. This is what caused the suspension of all work, this is what caused the loss of over 1,000 jobs, this is what caused the bounced checks, this is what caused many vendors and suppliers to go unpaid and the accrual of millions of dollars of claims with corresponding economic problems for those who worked and supported GGLC for the past six years.
Peregrine holds current liabilities of over $5 million dollars that have been expended in direct support of the GGLC project for work performed since April when the dispute began. This includes the monies that they removed from the WCA on June 3rd in addition to work performed since that date in Peregrine’s attempt to keep the hospital on track, and of course the rapidly accruing claims. Peregrine uses these funds to execute all work for the GGLC project. To date GGDC refuses to pay, yet as project owner, it is solely their responsibility to pay to Peregrine through the WCA. Initially Peregrine tried to keep the project going using its own funds, unfortunately however, Peregrine could not maintain this for an extended period. Losses and damages continue to accumulate which can be summarized with the loss of over 1000 direct and indirect project employees and many Filipino companies who have not been paid for services performed.
Statement: The articles go on with statements indicating that GGDC intends to invest another $150 million in the Global City project by the end of 2015. Consider that in six years, actual expenditures on the horizontal infrastructure at Clark’s GGLC project is just over $50 million US dollars, with an additional $20 million US dollars in the hospital along with $20 million in debt financing. This amounts to just over $10 million US dollars a year. That is their track record.
Fact Check: To date, after a full six years of ownership, the Kuwaiti investor can only show that only 35% of the horizontal infrastructure is complete and only one building, a hospital, which is about 95% completed. This can be validated by an ocular visit and audit of Peregrine’s records. In contrast, during this same period of time, CDC and CIAC have essentially sold out the entire Clark Freeport Zone to locators such as Texas Instruments, Yokohama, Phoenix Semiconductor, Singapore Airlines, Donggwang, HLD Steel, Viskase and various other large foreign investors.
Statement: GGDC pledged $1 million US dollars for disaster relief and rebuilding efforts in communities affected by Super Typhoon Yolanda. This information can be found on their web site and also in many of the press releases as late as a few weeks ago.
Fact Check: Ten days after Yolanda hit the Visayas region, Peregrine deployed a convoy of relief aid to Balangiga, Samar, via Ormoc, Leyte and Baybay, Leyte. This initial relief convoy carried eight tons of rice, two reverse osmosis water filtration units, generators and other emergency relief supplies. Once supplies were dropped off in Ormoc and Baybay, the convoy proceeded to Balangiga, Samar. Peregrine then worked with the Mayor Viscuso De Lira of Balangiga to scope out several CSR projects, to include rebuilding city hall, the public market and schools. Peregrine pledged and expended $150,000 of its own money for this work, but much more was needed. Peregrine then approached GGDC to join in Peregrine’s own corporate efforts and to utilize GGDC’s $1 million dollar pledge to help rebuild Balangiga. This was agreed to. However, when GGDC withdrew millions of dollars from the WCA, Peregrine was left with no choice but to suspend ongoing work in Balangiga on the portion funded by GGDC which left two school buildings only partially reconstructed and the church work totally suspended. Peregrine was left with no choice but to pay the outstanding bills to local contractors and suppliers out of their own pocket that should have been on the GGDC ledger because GGDC decided to take back the money that had been committed for the work in Balangiga. To date, GGDC has only expended $300K of their $1 million pledge. This can be confirmed by an audit of the GGLC and Peregrine CSR records and by talking with the mayor of Balangiga and PARR Secretary Panfilo Lacson who officiated at the turnover of the city hall and public market buildings.
Statement: Many of these same press releases state that GGDC is a company originally founded by The Port Fund, a private equity fund managed by KGLI whose investors largely consist of the shareholders of government entities of Kuwait and other GCC countries.
Fact Check: A review of public documents in Kuwait will show there are no less than four active investigations by the Kuwait Ministry of Justice (MOJ) into complaints against KGL and The Port Fund for charges ranging from embezzlement, misappropriation of public funds, and financial and administrative violations that have resulted in damage to Kuwait public funds. Two of these MOJ investigations were opened based on the complaints of two of the Kuwait government entity shareholders to The Port Fund, the Kuwait Ports Authority (KPA) and the Public Institutions for Social Welfare (PIFSS). KPA has subscribed to the Port Fund for $85 million dollars, but based on a Kuwait State Audit Bureau report that revealed encroachments committed by the Port Fund, has filed a complaint claiming violations committed by the fund and decline of its capital. The PIFSS invested $40 million dollars into the Port Fund and has also filed a complaint based on financial and administrative violations against KGL that have resulted in damage to public funds.
Statement: In the last week of August in a DOTC hearing at Clark attended by House Transportation Committee Chairman Cesar Sarmiento, Representative Yeng Guiao and other members of the Central Luzon Alliance of Congressmen, KGLI Asia and GGDC reiterated their commitment to stay in the Philippines and to heavily invest in the development of Clark and to generate more jobs and contribute to the growth of the Philippines.
Fact Check: GGDC’s investment, over the exact same time frame, should be compared to our own Philippine government stewards at CDC and CIAC who have virtually sold out all their lands to include billion dollar investments by Texas Instruments and Samsung, and multi millions by the likes of Yokohama, Singapore Airlines, HLD and many, many others. It was GGDC, by its removal of millions from the GGLC working capital account that precipitated the laying off of 1000 direct and indirect employees with the accrual of some $5 million in current liabilities.
Statement: Other papers reported Mark Williams, GGDC President, said they need the GGLC lease annotation to strengthen their leasehold rights over the 177-hectare logistics city.
Fact Check: As BCDA President Casanova rightly pointed out in his official response to GGDC’s repeated requests for BCDA to annotate their lease agreement for the 177-hectare GGLC site, “If you have the financial capability, there is no need for the annotation.” He went on to say “Other investors inside the Clark Freeport Zone like Yokohama and Texas Instruments have no annotation for the property they occupy under lease agreements”.
Statement: KGLI and its Port Fund, whose investments in the Philippines include the GGLC project and an investment in the 2GO Group, committed $1 million for disaster relief and rebuilding efforts in communities affected by Super Typhoon Yolanda (Haiyan).
Fact Check: One of the saddest and most unnecessary losses as a result of GGDC’s removal of the millions from the WCA on June 3rd reconstruction efforts which were underway in Balangiga, Samar. Peregrine had donated $150,000 of its own money in relief goods and the rebuilding of the Balangiga City Hall. After Peregrine noticed that GGDC pledged $1 million in disaster relief, Peregrine approached GGDC to join in Peregrine’s already ongoing CSR efforts in the town of Balangiga. GGDC agreed which led to commitments to proceed with rebuilding the Public Market and three school buildings and later the restoration of the church. Unfortunately, only $300,000 of the $1 million dollar pledge from GGDC was utilized when GGDC closed the WCA thereby forcing the suspension of all works in Balangiga. However there still was thousands of dollars of outstanding bills to be paid which left Peregrine no choice but to intercede and pay these out of their own funds.
TUESDAY NIGHT, 19 AUG, 6 PM AT THE BLUE BOAR INN STABLE. JOIN HOWARD MCKAY
AN EVENING TO REMEMBER AND GIVE A FINAL GOOD BYE TO DOGGY DAVE THROUGH STORIES, SONG AND A BIT OF DRINK.
This information was sent to me by a reliable source:
Today if you read PUNTO newspaper, the story says everything is back to “NORMAL” at GGLC. http://punto.com.ph/News/Article/21036/Volume-8-No-7/Headlines/u-UNAFFECTED-BY-GGLC-ROW-u-br-The-Medical-City-Clark-set-to-open-Dec-8
Yet only a few hours earlier on 14 Aug, GGDC (Kuwaiti fund) tried to forcibly take over the GGLC site with 100 new guards (they had the guards on buses on Spur Rd). LOL. Unable to convince CDC and the PNP to allow them and WITHOUT a Court Order, the guards were sent back to Manila.
Today about noon, Mark Williams, President of GGDC was back asking for the NOTICE sign to be removed. NOTE: He is the one who on 3 June, closed two checking Accounts and REMOVED 1.6M USD to pay vendors and payroll. Today, CIAC and PNP SOSIA, were both called out because GGDC wanted these signs removed. The signs remained, because Peregrine is still in control of the GGLC.
The Sign on the guard shack says:
THIS SITE IS CLOSED AND OFF LIMITS. ALL WORK SUSPENDED EFFECTIVE JUNE 3, 2014 DUE TO CESSATION OF FUNDING BY GGDC.
Now the CEO of The Medical City (their hospital is being built), CEO of Clark Development Corp and President of GGDC would have you believe with misinformation that everything is “normal” on GGLC. They have huge ads in the news papers in Manila just this week. Yes there IS NO work going on the site and it is completely closed down.
The project is in legal dispute pending arbitration in Singapore and is shut down. Over 170 Peregrine workers were laid off in July, $5M in unpaid liabilities to local vendors … it is unfortunate that the public is continued to be misled. An estimate +1000 workers, subcontractors, have lost their jobs too.
It would be nice is someone would do more investigation and get the truth out. Until them, I will send out occasional updates.
(I wrote a detailed article about this situation in my column and I specifically stated that the work on Medical City Clark has come to a standstill. Then today I read in the Sun Star that all is well and that they expect to open the hospital ahead of schedule. This is a complete fabrication!
Note the name Mark Williams in the above statement. This man has definitely taken a major roll in the removal of operational funds from the Peregrine account. This battle is being fought in the courts but despite decisions against KGL Manila Mark must feel that he is above the law and now wants to apply old style questionable heavy handed actions by a goon squad in uniforms. Is he afraid of the courts?
Received this from an anonymous source. Could it be something bar owners in Angeles City have been hoping for the last few years? It certainly is past due!
Some other news. General Purisima has ordered a full investigation in to the RSOG at Camp Olivas. The Internal Affairs officers have been here for the last several days (Subic). They mentioned that the investigation also extends into their activities in Angeles City.
This should be good news for Cynthia Anderson and many bar owners in town who have been victimized.
Problem: I doubt that any bar owners will cooperate with any investigation for fear of repercussions. This is still a Third World County with a strong revenge mentality.
I AM IN SHOCK AS I WRITE THIS. I WAS JUST INFORMED THAT DOGGY DAVE WAS MURDERED IN HIS HOUSE AT 5 PM LAST NIGHT. IT APPEARS TO HAVE BEEN A ROBBERY BY TWO FILIPINO MEN THAT HE MIGHT HAVE KNOWN SINCE HE GAVE THEM ENTRANCE TO THE HOUSE.
HIS NEIGHBOR (A FOREIGNER) HEARD YELLING FROM THE HOUSE, “HELP, HELP”, TOLD HIS WIFE AND SHE THOUGHT IT WAS THE TV. BUT HE SAID “NO, IT SOUNDED LIKE A REAL VOICE”. HE CALLED 117 (EMERGENCY #) AND IT TOOK THE POLICE ONE HOUR TO ARRIVE. THE NEIGHBOR SAW THE TWO MEN LEAVING AND WAS ABLE TO GET THE LICENSE # OF THE TRICYCLE. HOWARD ARRIVED ON THE SCENE AT 7 PM. DOGGY LIVED IN PLARIDEL NEAR BLUE FIELDS HOTEL.
THIS IS HORRIBLE NEWS AS DAVE HAD SO MANY FRIENDS AND WOULD NOT HARM A FLY. IF IT WAS ROBBERY THE BASTARDS WOULD NOT HAVE GOTTEN MUCH AS DAVE LIVED A SIMPLE LIFE. HIS DAUGHTER IS COMING HOME FROM BAGUIO WHERE SHE IS IN RESIDENCE COMPLETING HER TWO YEAR REQUIREMENT AT THE HOSPITAL.
DOGGY HAD REQUESTED THAT HE WOULD LIKE TO DIE QUICKLY AND BE CREMATED. THE MANNER IN WHICH HE DIED IS TOTALLY UNACCEPTABLE. NO OTHER DETAILS AVAILABLE AT THIS TIME. HIS FRIEND OF 25 YEARS HOWARD MCKAY WILL TAKE CARE OF ALL THE DETAILS AND ASSIST THE DAUGHTER.
A BIT OF MUSIC DIED LAST NIGHT.
UPDATE: DOGGY DIED AS A RESULT OF BEING STABBED 7 OR 8 TIMES WITH AN ICE-PICK. IT APPEARS THAT THE MURDERERS WERE TWO LOCALS EMPLOYED BY DAVE TO WORK ON HIS GARDEN. WILL REPORT MORE DETAILS WHEN THE SUSPECTS HAVE BEEN APPREHENDED. DAVE WAS CREMATED AT 6 pm, 13 AUG AT LA PIETA FUNERAL HOME.
GOLDEN CALYPSO RAID UPDATE: I WAS ABLE TO GATHER ADDITIONAL INFORMATION ON THE CALYPSO RAID. IT TURNS OUT THAT FOUR CUSTOMERS WERE DETAINED AND TAKEN TO CAMP CRAME AND THEY DID HAVE TO PAY A CERTAIN AMOUNT OF MONEY TO BE RELEASED. THE POLICE WERE ON THE PREMISES FOR FIVE HOURS, WHICH IS A LONG TIME. THE RAID WAS CONDUCTED BY THE CIDG (ACTU UNIT – I NEVER HEARD OF THIS UNIT BEFORE) OUT OF CAMP CRAME. THE EMPLOYEES TAKEN WERE HELD FOR 50 HOURS BEFORE ANY ACTIONS WERE TAKEN. THE GIRLS WERE FORCED TO SIT AND SLEEP ON THE COLD FLOOR BEFORE EVENTUALLY GETTING SOME MATS. ALL GIRLS RELEASED EXCEPT FOR TWO WHO WERE DETAINED. FOUR OTHERS WERE HELD BY DSWD FOR SUSPICION OF BEING UNDERAGE BUT NO MINORS WERE FOUND.
I WAS VERY CONCERNED WHEN I HEARD THAT MARK (HOLLYWOOD) WAS DETAINED AS HE WAS NOT A MANAGER OF OWNER OF THE CLUB. HIS DUTY WAS AS MC FOR THE SHOWS, SOMETHING HE HAS BEEN DOING FOR VARIOUS CLUBS OVER MANY YEARS. I WAS SADDENED TO HEAR THAT HE MAY BE CHARGED WITH HUMAN TRAFFICKING AND IS WAITING FOR DISPOSITION OF THE CASE. I DO NOT KNOW IF HE WILL BE TRANSFERRED TO ANGELES CITY JAIL OR KEPT IN MANILA. THIS WOULD BE A TRAVESTY OF JUSTICE IF SUCH CHARGES ARE PUSHED THROUGH.
Sent from a reliable source.
Comments and Remarks: Harry, Just got word that Gordy (Gordon Matthew Gale) also known as drummer, was found dead in a hotel in Makati. Suicide is a possibility but I’ve learned from you never take things on their face in this country. Anyway, he was a great guy and I wanted you to know.
I am in shock. I have known Gordy for a very long time. The last time I saw him was at the opening at Tony J’s and he was in high spirits. I can’t imagine that he would commit suicide.
I received this information from someone who knew Gordy. It might explain a few things.
“He was destitute and desperate. He sent a blanket email asking for help to repatriate in order to see his dying mother for the last time. His lease on his apartment was up a couple of days ago, and he was asking around for information on cheap accommodations in Thailand. He was found in a hotel in Makati with a .38 with the serial number filed off.”
American found dead in Makati hotel
By Mike Frialde (The Philippine Star) | Updated August 10, 2014 – 12:00am
MANILA, Philippines – A 59-year-old American man was found dead in a room of a Makati City hotel on Friday afternoon. A report reaching the Southern Police District identified the victim as Gordon Matthew Gale of Casa del Mar, Baloy Beach, Olongapo City. Gale checked into the hotel in Barangay Guadalupe Nuevo at about 1:37 p.m. on Thursday. Gale told the hotel staff that he would be staying overnight, according to police.
At about past 3 p.m. on Friday, hotel supervisor Michael Puzon and assistant supervisor Rescon Talagua found Gale’s body when they checked his room after he failed to answer their reminder of his check-out time. Gale was lying on the bed with blood on his face. An Armscor .38 caliber revolver with serial number 31555 was found near the right side of his body, police said. The victim’s body was then taken to the Veronica Funeral Home. The Makati City police said the United States embassy was informed of Gale’s death. Investigators are still looking at the possibility of foul play in the incident.
At 11:42 PM last night I received this text from a source: ”Nirvana just being raided at present”. I found this to be a bit shocking as this Club has only been opened for a couple of months.
The second text read: “Heard from San Fernando 2 Malaysians set them up with bar fines”.
I will update as I find out additional information.
Saturday Night Raids
At approximately 1030pm on Sat 2 Aug Calypso & Grand Pharaoh were raided by CIDG Manila….Read
There are lots of rumors, but too early for determining full details. I will update this post in the next few days as we know more. Details from a reliable source:
The raid was conducted by CIDG Manila.
They used a Korean asset to pay a bar fine and promptly raided straight after.
They detained customers, all girls and staff. They questioned all foreigners found on the premises but let the majority go after having inspected their identification documents.
Before releasing any foreigners they were asking if any of them is the manager or owner of the bar.
They detained Mark, aka “Hollywood” who was actually on the microphone as the MC during the “Search for Queen of Calypso” event.
They questioned all girls and after making them write down their name. They reportedly released all girls who were 20 or over.
They brought in a huge black bus which they parked outside Calypso & Grand Pharaoh at 3:AM.
Posted by JC on 2014-08-02
I received a text last Saturday night informing me of the raid and provided most of the details provided by JC above but wanted to wait for further confirmation. I must admit that I was sorry that this raid took place after enjoy a month or so of relative peace. I knew the raids would occur again but was hoping for a longer break.
Once again a Korean asset was used and once again the “bar fine” set up procedure was used. The detention of “Hollywood” was uncalled for. He is not a manager, not an owner, just someone performing as an MC, something he has been doing for years in this town. I can only hope for his quick release.
t do not like the idea of questioning the customers in their attempt to capture an owner or manager.
Here is an eyewitness report:
To start I was there taking pictures at the 9 – 11pm dance contest event. At 10:30pm a girl came running through the bar and out the back staircase, not a particularly unusual occurrence I initially thought. A few seconds later as I am standing there huge SLR camera in hand many more girls come flowing up to the back of the bar until one girl yelled “RAID”. That was it, the stampede began. Within seconds girls jumping tables, grabbing bags, abandoning drinks and running for the back.
Upon hearing this I threw my camera into it’s carry bag but was worried what might happen if they saw me with it as it contained about 400 pictures from in the bars. Quickly I removed the memory cards and hid them in my wallet.
Just as I packed away the cards a real official looking guy with a CIDG shirt and hand radio walked the length of the bar. At this point most customers had thrown some cash in their bill cup and were making their way to the door, so I did the same with my girl clinging to my arm. I assumed they would let me leave but I was worried about her being detained.
Approaching the door a lot of pushing and shoving was taking place and I saw Hollywood being walked to the entrance of Level 1 bar, I was not sure if he was being taken by choice or not. As I reached the officer at the door I could see the large luxury bus with curtains in all the windows parked across the length of the Pharaoh group bars. One foreigner and his wife were in front of me trying really hard to convince them to let them leave, but to no avail. In a last ditch effort he tried to run through the officers which was just as effective as talking to them. We were all ushered back inside followed by the officer that first walked in.
Once inside he had all the girls including my girl and other customers girls stand on one side of the bar and all the customers on the other (about 3 of us). The officer said that we were to be taken to Camp Crame in Manila and he started to file everyone towards the back of the bar. It was at this point I decided to ditch my camera in the pile of girls bags near the front door.
It became clear that we were all being taken into Level 1 bar through the doorway linking the 2 bars together on the 2nd floor. While the officer was not looking I ditched my business cards under some handbags laying around on the tables.
Once through the doorway it was more clear why there was such a large bus and only one or two officers in Calypso, They were raiding all three bars. Level 1 was full of alteast 20 customers, a fair few officers in assorted clothing (armed with nothing more than handguns) and just packed wall to wall with the girls that didn’t escape.
At this point I sat at one of the tables turned to the manager and said “Damn, I could use a drink.” I also found that any customer who had walked out the front of Calypso were now in Level 1 including Hollywood. The bar was strangely quiet with all the girls mostly in shock or fear, all the foreigners talked amongst themselves about who they knew, what they had heard, what had happened in previous raids and a few gathered their cash to try to pay someone off.
10 minutes passed and nothing seemed to be happening other than by the pool table I could see girls writing their names and what I later learnt was their age on blank sheets of line paper. Unsurprisingly I saw officers carrying out “evidence” in the form of the accounting books. As I sat at this table trying to reassure my girl, another customers girl started to yell and argue with one of the officers. The officer seemed to be ignoring anything we asked him and all he could say was, they are taking us to Camp Crame for “verification”. This girl really laid it on hard to the officer and her boyfriend couldn’t even hold her back. She kept at him until the officer eventually retreated out the door.
Eventually a very patronizing officer who seemed to be above the rest, started requesting foreigner ID’s. He then wrote down the foreigners names, asked if they were the manager, and then after a while announced that we could leave. I didn’t exactly trust his claim as there was a big commotion as the first few guys went to leave, I thought maybe they were just the first to leave… On the bus. I gave my ID and was told I could leave but my girl had to stay, I claimed she is my girlfriend I would not leave without her. Just to be safe I moved towards the exit with my girl and luckily asked a friendly looking officer if the guys were in fact being put on the bus. He reassured me this was not the case and asked me about my girl, which again I claimed to this new guy that she is my girlfriend. He took her over to the guy in charge who was writing down the name, a quick Tagalog exchange and a long pause accompanied by some puppy dog eyes, the guy caved in and let us both go.
We wasted no time as this point as soon as we got the nod I near ran for the door with girl in hand. Once out the door all I could see was this huge bus and some officers at the ends of it to ensure no runners. I proceeded unobstructed past the bus and ducked under the awning of the hotel across the street. I had no intention of leaving as my camera was still in Calypso which I was not going to come back to Shagger and say I had lost.
Little more happened for the next few minutes the rain, a huge crowd with umbrellas and a giant bus made seeing anything near impossible. At this point my knees were still wobbly and I needed a rest so I decided to try out the new Mexican place outside nearby High Society. The taco was great and I felt more relaxed to go back and watch the proceedings.
At one point some girls were released or escaped they ran a short distance when out so it was not clear exactly what the case was. As these girl ran the crowd swamped the area almost as if to lay down cover for the girls. This opened up an opportunity for me because the entire crowd was focused around the bus and level 1 entrance which meant the entrance to Calypso was behind the crowd line though still blocked by a chair and likely manned by and officer on the inside. This seemed like the best time to stand by the door, by a stroke of luck an officer tried to open the door from inside but the chair held it close. I helpfully pulled the chair out of the way for him and simply told him my bag was just inside could I grab it. He immediately asked what sort of bag which had me worried, I naively answered “A blue one.” He pushed the door open and I flew down the steps grabbed the bag and was half way up the street within seconds.
I talked with some of the girls and guys who were let out, (mamasans and off duty managers)to gain a clearer picture of what was going on. Basically they were looking for managers and the owner along with any underage girl. I spoke to a girl who was so nervous after getting out she was shaking and almost stuttering. She told me what they were doing was taking each girls name and age down on paper and then interviewing them. Any girl over the age of 20 was allowed to leave, also most customers were allowed to leave except the ones without any photo IDs or that were somehow suspect. After an hour I knew they still had Hollywood and the manager, I soon learnt that everyone inside was told that if they were seen txting phones would be confiscated. Girls continued to trickle out one and two at a time but no more guys yet. However then one of the manager came walking out who ran into one of the off duty managers. This off duty manager relayed a lot of the above information from the manager who had made a speedy exit.
Amazingly a girl I know who was there alone as a customer got out which seemed surprising but she told me that though they were clearly older the Calypso waitresses were being held and questioned about the group owner. Additionally she said that the reason Hollywood was not out is because he was being accused of being the OIC or general manager.
After trials and tribulations, much stress, financial strains and whatever, happily, Honey-Ko’s has reopened. The word from the Boss:
“thanks mate. we up 2 28 girls already and have new mamasan starting monday. still chasing some license 4 girls. hope 2 have more paperwork 2day.”
“mamasan pulled out so nominated one of my girls 4 now.”
Happy days are here again as one of the most popular bars on Perimeter Road has opened its doors again. Starting slow but picking up steam with each passing day.
73-yr-old British man arrested for child porn
By Zyann Ambrosio, ABS-CBN News
Posted at 07/22/2014 5:16 PM | Updated as of 07/22/2014 5:16 PM
MANILA – A 73-year-old British national was arrested in Angeles, Pampanga on child pornography charges, the National Bureau of Investigation (NBI) said on Tuesday. The NBI Cybercrime Division said Douglas Michael Slade was arrested in his home after nude pictures of children were recovered from him during a raid.
According to the NBI, Slade has been inviting children aged 9 to 12 years old to enter his house where he offers them food and money to convince them to pose nude. The suspect allegedly pays the children P150 to P250. For his part, Slade denied the allegations. He, however, refused to answer questions from the media.
(This is not the first time that Doug Slade has been apprehended for offenses against young children. Somehow, each time he has been able to stay out of jail. Doug is the owner of “Home Base” in the Plaridel area and has provided meat and other products to the local Expat community for years. Years ago he had rented a home in Carmenville with a swimming pool in which he allowed many young children to swim and have a break from the hot weather. Each time Doug has been detained he has denied the allegations and been able to move on with his life. It will be interesting to see what happens this time)
M. DOUGLAS MICHAEL SLADE (1995)
A British paedophile accused of child molestation in Angeles City. PREDA investigated and found another one of his victims and filed charges against Slade who is now on trial in Angeles City.
News of the World
A former navy officer who prepared dinners for the Queen on the Royal yacht Britannia faces life in prison for molesting boys.
Retired Lieutenant Commander Douglas Michael Slade, 64, will stand trial on paedophile charges after allegedly abusing children as young as 13 at his home in the Philippines.
Police say they caught him abusing a 15-year-old boy and exposing another 14-year-old boy to a pornographic film.
Five children aged 13 to 17 claims they were molested by Slade between 2003 and 2005.
Slade originally from Aylesbury, Bucks, has lived in the Philippines for 21 years and runs a shop selling home-made pies to British expats.
Child welfare workers have nicknamed him “The Pork Pie Paedophile”.
Slade was first arrested in September last year after police swooped on his apartment in the town of Angeles, notorious for under-age sex and child-sex tourism.
He was due to appear in court in February but failed to attend and after being arrested again in March posted bail of £6,000.
Slade pleaded not guilty to all the charges at a hearing at the Angeles Trial Court earlier this week. His trial is due to begin on 12 April.
Slade faced similar charges in the mid-90s after four youngsters aged 11 to 14 were allegedly found naked with him in his swimming pool but the case was settled out of court.
He was exposed in 1975 as the ringleader of a group called Paedophile Action for Liberation, which aimed to make paedophilia legal.
Another Briton also faces paedophile charges in the Philippines after allegedly abusing kids.
Barry Edwards, 60, was arrested three years ago and is due in court later this month.
An earlier charge of raping a 14-year-old girl against the former university Maths lecturer at the Middlesex University was dropped.
Child-welfare worker Father Shay Cullen said: “There are more British paedophiles coming to the Philippines since the conviction of Garry Glitter in Vietnam.
“They too will be caught and face a minimum 17 year in prison. They treat children as sex toys for their sexual gratification and buy them for the price of a hamburger.
“Douglas Slade has evaded justice in the past when he was accused of sexually abusing small boys here. We at the Preda center for children are doing all we can to see justice done and prevent the pay-off of victims and their parents. [End]
This is an item I would have waited until Aug to publish but I am so angry that this man questioned my integrity that I am publishing it here now.
Dear Harry, I have just started a 3 month contract at Burger Shack, playing the piano. I read your review, and wanted to clear up a few things. The burgers start at 155 pesos. All my friends have enjoyed the burgers and these kids are having a soft opening.
I think you might have been a little hard on them, but for your own edification, your blog is so powerful and so many people take it as Gospel, that 5 people have said to me that the word on the street (read Harry the Horse) is that the burgers are no good. The answer to the question “have you been there and tried one?” is always no! So my humble request is for your readers firstly to understand the correct price of a burger, and for goodness sake, go and try one for yourself!
I play Friday, Saturday and Sunday
best regards, Chris Marshal
Chris, thank you for writing back to me and explaining that I misinterpreted your comment about “go and try one for yourself”. Yes, I did think you meant me instead of the five people you spoke to. Naturally, I do realize that the Burger Shack was having a soft opening and will listen to comments from customers. Maybe the majority of their customers will like the burger being served and decide not to make any changes. Maybe they will be able to give proper printed receipts when asked for one. One makes allowances for a soft opening. I was not hard on the kids, I was only critical of the hamburger. My opinion of the burger presently served remains the same but I wish them success and of course hope that your musical weekend gig will bring in a lot of business.
Your DAV Chapter 3 will hold a very important general membership meeting (GMM) this Friday, July 11th at 11 AM in the VFW Post 2485 Essary Room. This meeting will not only decide the fate of our Chapter (whether to continue), but also elect chapter officers for 2014-2015, if we do decide to remain a chapter. We also need volunteer service representatives to man the office and decide how many days we will be open for counseling/assistance. Please attend if at all possible. Hope to see you there!