The Evolution of Terrorist Financing in the Philippines

PCSUPT RODOLFO B. MENDOZA JR.
PHILIPPINE NATIONAL POLICE
The following is a discussion on the evolution
of terrorist financing in the Philippines in
relation with the Moro Islamic Liberation
Front and the Abu Sayyaf Group
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In the Philippines, groups such as the MILF
and ASG get their funds from any of the
following:
? Non-Government Organizations used as fronts by
radical Islam groups
? Kidnap for Ransom operations
? Extortion
? Zakat
}
By all indications, the financing of terrorism
and terrorists in the Philippines could have
started with the recruitment of volunteers
from 1979 until 1992 to fight with the
Afghan mujahideens against the Soviet Union.
}
}
The various fundamentalist and extremist
organizations in the Philippines are believed
to have a direct connection with the Filipino
Afghan war veterans who were sent there as
trainees or scholars of various Islamic
organizations and associations abroad.
The volunteers reportedly received religious
indoctrination paramilitary training and
combat experience.
}
}
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The MILF sent about 1,000 Filipino Muslims to
Afghanistan and Pakistan in the early 80’s to
undergo military training and participate in the
Afghan war
The first batch of MILF trainees were sent to
Afghanistan in January 1980. There were about
600 Filipino Muslims in that batch, 200 of whom
were Islamic converts
The trainees allegedly presented themselves as
overseas contract workers and scholars while
others would say that they were on a pilgrimage
to Mecca
The various Islamic fundamentalist and
extremist organizations in the Philippines
such as the Moro National Liberation Front
(MNLF), MILF and the ASG are mainly powered
by the Afghan War veterans who received
training in the art of guerilla warfare and
terrorism. They are experienced in combat
and deeply indoctrinated in Islam and
committed to the cause of Islamic jihad and
the attainment of an Islamic theocracy.
THE MOHAMMAD JAMAL KHALIFA BUSINESS AND NGO
NETWORKS IN 1993-1995
ERASCA
KONSONJAYA
SINGAPORE
KTI
SAHABA
BIC
Business Line
NGO Line
IRIC
IWWF
IWCF
MERCY FOUNDATION
IIRO
IIEF
Davao City
KUALA
LUMPUR,
MALAYSIA
DEF
Davao City
SHABAB
DISF
Marawi
IIRO-9
Zamboanga
ISCAG
IDGC
Cotobato City
DHF
Declassified intelligence reports from the
Philippine National Police (PNP) claimed that
Osama Bin Laden dispatched his brother-inlaw, Mohammad Jamal Khalifa, to the
Philippines in 1988 to set up what would be
the beginning of an Al Qaeda network in
Southeast Asia.
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}
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Throughout his stay in the Philippines Khalifa
used the cover of an Islamic missionary and
businessman to establish his presence
He also had two Filipino-Muslim wives
identified as Alice Yabo and Nurain (Nor Ayn)
He was the primary sponsor of several
Manila-based NGOs which were established
to provide humanitarian aid to Muslim
communities throughout the Philippines
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}
}
}
}
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KTI- Khalifa Trading
Industries
BIC- Benevolent
International Corp.
IRIC- International Relations
and Information Center
IWWF- Islamic Wisdom
Worldwide Foundation
IWCF- Islamic World
Committee Foundation
IIRO- International Islamic
Relief Organization
}
}
}
}
}
}
IIEF- International Islamic
Efforts Foundation
DEF- Dar’ul Ehsan
Foundation
DIS- Dar’ul Imam Shafee
Foundation
IDGC- Islamic Dawah
Guidance Council
DHF- Dar’ul Hijra
Foundation
ISCAG- Islamic Studies,
Call and Guidance
}
}
The Islamic NGOs and businesses associated
with Khalifa got their funding from Osama Bin
Laden and his associates as well as various
legitimate international Islamic organizations
such as the International Islamic Relief
Organization (IIRO) and the Muslim Worldwide
League
Khalifa established and became the director
of the Philippine office of the IIRO.
}
}
The support and propaganda structures of the
Islamic extremist organizations in the Philippines
were established in Mindanao and the National
Capital Region (NCR) through the use of NGOs,
charitable institutions and business
establishments mainly linked with the network of
MJK
The Khalifa network, especially those that dealt
with import, export, trading and recruitment of
workers served as the coordinating point for
business deals and transactions as well as for
terrorist activities and recruitment of Islamic
fighters for the Al Qaeda.
}
In his capacity as the Director of the IIROPhilippines, Khalifa served as the central
authority with a dual character in the over-all
context of terrorist financing management
and Islamic missionary oriented approach for
the welfare of poor Islamic communities
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}
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Most of the funds of the IIRO were not used
for social welfare but for Islamic projects
including mosque repair and construction
The IIRO also directed the theology of those
mosques by arranging for Middle Eastern
clerics to take them over
It was acknowledged that the IIRO was behind
of construction of mosques of mosques,
school buildings, and other livelihood
projects but only in areas penetrated and
highly influenced and controlled by the ASG.
ILIGAN CITY
LANAO
DAVAO
PROVINCE
COTOBATO
ZAMBOANGA
DAVAO CITY
MAGUINDANAO
}
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The IIRO was used by
Osama Bin Laden and
Khalifa to distribute
funds for the purchase of
arms and other logistical
requirements of the MILF
and ASG
Only 10 to 30 percent of
the foreign funding goes
to the legitimate relief
and livelihood projects
and the rest go to
terrorism operations.
}
The MILF has active support and propaganda
structure in the National Capital Region (NCR)
which is tightly linked with several Islamic
fundamentalists and extremist organizations
in the NCR, Cotobato City, and Marawi City
mainly associated with Mohammad Jamal
Khalifa.
}
}
In 1999, the late Hashim Salamat admitted
that Osama Bin Laden had sent financial
support to the MILF but that the money was
allegedly used only to build mosques and
provide livelihood projects in poor Muslim
communities.
However, it was found out that Bin Laden had
not only been sending financial support to
the MILF but also trainers of various
nationalities who are experts in explosives,
commando tactics, and guerilla warfare.
}
A member of the Maktab Al Khadamat (MAK)
has been in contact with two prominent MILF
members: Abdul Nasser Nooh and Yusop
Alongan. Nooh is the MILF liaison officer in
Manila while Alongan is the Chairman of the
MILF Finance Committee.
File photo of Abdul Nasser Nooh
}
}
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MAK, also known as the Afghan Service Office, was
founded in 1980 in Peshawar, Pakistan and is one of
the subsidiaries of the Muslim World League. MAK
was involved in the training of Afghan mujahideen
fighters.
Both Nooh and Alongan were known to communicate
directly with various Islamic NGOs that are linked with
the Khalifa network. Among these NGOs are the
Muslim World League, International Islamic Research
Organization, Darul Hijra Foundation, Islamic Call and
Guidance Center, and Islamic Dawah Council of the
Philippines.
These NGOs are allegedly serving as fronts for
channeling funds from abroad to the MILF.
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The IIRO was able to direct money to the MILF
as many of the local IIRO officers were either
members of the MILF or family members of
MILF leaders.
}
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The IIRO was also a key funder of the
Markazzo Shabab Al-Islamiyah (MSI), one of
the MILF’s most important front
organizations that was engaged in dawah and
recruitment activities.
It is based in Lanao del Sur and is affiliated
with the Saudi organization of the World
Assembly of Muslim Youth (WAMY).
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}
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Khalifah provided funding for the MSI through
several charities and foundations including the
Muslim World League, the IIRO, and the Zaid Bin
Thabit Koranic Center
The MSI is affiliated with a number of NGOs one
of which is a 30 hectares training center in
Poona-Bayabao, Lanao del Sur which served as a
non-military training center in the MILF
The IIRO donated 8 million pesos for the training
center which was constructed by the Sahaba
Development and Construction Inc. a company
asscoaited with MILF personalities
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The IIRO also provided funding through two
companies to purchase large landholdings of
indigenous non-Muslims in Mindanao and
then offer them cheaply to Muslim settlers
Ancestral domain is a central issue in the
current round of peace talks between the
MILF and the Philippine Government. Most of
the lands purchased were in Calinan, Davao
City, Saranggani, Pikit, Davao Oriental and
Agusan del Sur
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The MILF is also behind the Darul Hijra
Foundation which it used as a financial
conduit and a bonafide education/dawah
center
The foundation gave funding to the Rajah
Solaiman Islamic Movement
Abdul Nasser Nooh, a senior finance officer
of the MILF was one of the DHF’s
incorporators. The DHF also funded orphans
of MILF fighters and assisted in the dawah
programs of the MILF
AL QAEDA NETWORKS
IN THE PHILIPPINES
AND LINKS WITH MILF
JEMAAH ISLAMIYA
SOG, 3 RD DIV
BIAF
CO: MUKLIS YUNOS
(AFGHAN TRAINED)
NOTE: ABDUL NASSER T NOOH
HAS OUTSTANDING LINKS
WITH AL - GHOZI
HAMBALI
FAIS
AL – GHOZI
(INDONESIAN)
SOG/BISF
ALEEM MIMBANTAS, ABDUL-AZIS
(CC MBR, MILF, CHIEF BANGSA MORO
ISLAMIC SECURITY FORCES)
MILF
CO: ABU SADID @ LOTPI
(AFGHAN TRAINED
YUSSOF ALONGAN
MILF FIN OFCR
NEDAL DHALAIN
(PALESTINIAN – JORDANIAN)
DHFI
AHMAD SANTOS CELL
(FIL – MUSLIM
TRAINED IN CAMP BUSRAH,
LUMBATAN L S
FSDMFI
IWMF
IIC
ABDUL NASSER T NOOH
(MILF SENIOR FINANCE & LIAISON OFCR)
- NEDAL DHALAIN
ISCAG
LEGEND:
SOG – SPECIAL OPERATION GROUP
BIAF – BANGSA MMORO ISLAMIC ARMED FORCES
BISF – BANGSA MORO ISLAMIC SECURITY FORCES
FSDMFI – FI SABILILAH DAWAH MEDIA FOUNDATION INC.
DHFI - DARUL HIJRAH FOUNDATION INC.
IIC - ISLAMIC INFORMATION CENTER
ISCAG - ISLAMIC STUDIES CALL AND GUIDANCE
IWMF - ISLAMIC WORLD MISSION FOUNDATION
AL – LAHIM HAMOUD
(SAUDIA)
IBRAHIM MATA
FIL - MUSLIM
CAVITE
CHAPTER
PAMPANGA
CHAPTER
(ISCAG)
BATANGAS
CHAPTER
TARLAC
CHAPTER
PANGASINAN
CELL OF
AHMAD MASRIEH
HUSSAM AL ADEN
ARRESTED BY: PNP – IG
NOVEMBER 2001
}
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It is believed that Khalifa helped finance the
Abu Sayyaf Group (ASG) whose founder,
Abdurajak Abubakar Janjalani was one of
those recruited by Khalifa and sent to Syria
and Libya for training in the late 1980s
Allegedly, the ASG was able to expand its
membership with the support of the Khalifa
network.
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The Philippine chapter of the IIRO is said to be
the one which provided funds for the logistics of
the ASG and it was Khalifa who directly channeled
funds and other types of support to the group
The late Wahab Akbar, who has been accused of
having ties with the ASG, has said that 60 to 70
percent of the money coming from Khalifa went
to the ASG and other organizations such as the
Moro Islamic Liberation Front (MILF) and the
Moro National Liberation Front (MNLF)
}
In January 1992, Khalifa and Al Qaeda
operatives Ramsey Yousef and Wali Khan
Amin Shah met with ASG leaders and gave
them US$6,000 for two ultimately successful
operations- the assassination of an Italian
missionary and the bombing of a local public
market to disrupt the provincial elections
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Khadaffy Janjalani, was
also quoted as saying
that the group received
funds from two men
close to Osama Bin
Laden and identified
them as Mohammad
Jamal Khalifa and
Ramsey Yousef.
The ASG allegedly
received US$122,000 or
approximately 6 million
Philippine pesos in
exchange for sending
volunteers to
Afghanistan.
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Khalifa had a legitimate cover as the IIRO
Director from 1989-1995
One of his achievements was the
establishment of the Darul Imam Shafee (DIS)
in Marawi City in the early 1990s
The DIS was envisioned by MJK to be the
triggering mechanism and anchor for tribal
unity within the framework of creating the
Islamic Movement which will carry out jihad in
Mindanao.
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The DIS is a major step towards the creation
of a highly militant Islamic Movement.
Students from all over Mindanao belonging to
the different ethnic tribes as well as some
Islamic reverts were selected as scholars
The DIS counts several Islamic militant
leaders as its graduates, among them
Abdurajak Janjalani, Khadaffy Janjalani,
Sheikh Omar Lavilla of the RSIM and several
brigade commanders of the MILF.
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Khalifa’s financial and logistical support for the ASG
and MILF started to wane when the authorities
discovered his connections to both the MILF and the
ASG
His financing activities in the Philippines were further
disrupted with the discovery of the Bojinka Plot in
January 1995.
Khalifa served as a central figure for the management
of terrorist financing and support mechanism and he
used a “dual character strategy”
From the point of view of Islamic communities, he
was a philanthropist but be was also a financier for
the radical propagation of Islam for the intensification
of jihad.
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When Khalifa’s business networks and NGO’s
were exposed and disrupted, the organization
and terrorism financing machinery collapsed. It
also significantly affected the fundraising
activities of Khalifa in several Middle East
countries
The IIRO Philippines, which was being managed
temporarily by Abdulhadi Daguit from 1996 to
1998, was relatively dormant. All of its regional
chapters were inactive following the broad
exposure of Khalifa’s activities in 1995
In 1997 the dual character strategy and
centrally managed terrorist financing
mechanism was overhauled. For charitable
institutions and for the spread of radical
Islam, it should be separately managed. For
illegal organizations like the ASG, it has to be
independently managed.
The manifestation of
this strategy overhaul
was observed in 1997
with the arrival of 6
Saudi Arabian Islamic
militant leaders
involved in terrorist
financing
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They belong to the group of adherents to the
Sheikh Othaimen sect which subscribes to the
Wahhabist Islam ideology
The leader of the Othaimen cell is a certain
Abdulrahman Qassamulah and one of the
members of his entourage is Mohammed
Shugair
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The group made contact with the ASG shortly
before the death of Abdurajak Janjalani
They promised financial support for the ASG and
requested some ASG members to work with them
in Saudi Arabia
Shugair facilitated the selection and sponsorship
of Yasser Igasan and Burhan Mundos to KSA in
late 1997 to take up Islamic propagation course.
Igasan was the Provincial Officer of IIRO-Sulu in
1993-1994 while Mundos was the Provincial
Officer of IIRO-Basilan
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Borhan Mundos worked with the Saudi Arabian
jihadists until he was advised by Mohammed
Shugair in 2001 to put up the foundation
Safinatun Najah or the Ship of Salvation
It was through Mundos and this foundation that
financial support from the group of Abdulrahman
Qaussamulah reached the ASG
It is estimated that the ASG received more or less
P10 million from the Safinatun Najah
Shugair was one of the trustees of the foundation
and was listed as its Vice President under the
assumed name Mohammed A. Assugair.
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To avoid detection by the authorities, Mundos
facilitated the construction of mosques in
Mindanao under the supervision of Mohammed
Shugair
The millions of money sent to Mundos’ bank
account have never been questioned because of
the various charitable projects being
implemented by the Ship of Salvation
Aside from the construction of mosques and
Arabic schools, the foundation also put up
Qur’anic circles in Basilan, Zamboanga and Sulu
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Abdulrahman Qaussamulah and his group
have sent money to the ASG for operations
since 2001
The money was allegedly used for the series
of bombings in Central Mindanao and
Zamboanga City
ASG members who were arrested for their
involvement n these bombings implicated
Mundos who went into hiding
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When Mundos was arrested in 2005, he was
replaced by Jefferson Jagoh as President of
the Ship of Salvation
Shugair was also arrested and deported in
2005
The Safinatun Najah is the first NGO set-up
and managed by the ASG
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Burhan, Khayr, and Gulam Mundos are
considered well-experienced in Islamic NGO
management for terrorist financing
The brothers have the capability for
networking and have links with the Markazos
Shabab and Saudi-based funding institutions
They support the efforts of Yasser Igasan of
the ASG
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The Safinatun Najah was created and
managed by the ASG through the efforts of
Burhan Mundos
Gulam Mundos is a respected leader of the
Markazos Shabab and he is more identified
with the MILF. He is presently in Malaysia
Khayr Mundos is affiliated with the group of
ASG commander Isnilon Hapilon
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In a related development, Hamoud Al Lahim
arrived in the Philippines sometime in late
1998 or early 1999 and became the director
of the IIRO Philippines
Under Lahim, the IIRO financed network
building and it touched base with the Darul
Hijra Foundation (DHF) of Nedal Dhalain a
suspected Al Qaeda member and one with
ties to the MILF
The DHF was transformed in 2000 into the Al
Marief Islamic Educational Foundation.
}
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Hamoud Al Lahim, through the IIRO, also
funded the Islamic Studies Call and Guidance
by paying the salaries of its employees
The total monthly salaries for all the
employees costs P324,333.
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Lahim prioritized the rebuilding program on
the Islamic reverts
Jihad Fi Sabilillah and the Islamic Information
Center (IIC) became beneficiaries of the IIROPhilippines
In 2002 the IIRO-Philippines through Lahim
provided significant financing support to the
two organizations which paved the way for
the creation and consolidation of the Rajah
Solaiman Islamic Movement
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The IIC is the nerve center and main channel
for terrorist financing for the RSIM
But while the aim for strategic management
of NGO’s was followed, Hamoud Al LAhim
committed the same mistake made by
Mohammad Jamal KHalifa- he was directly
involved in providing funds to the RSIM
funneled through the IIC and Jihad Fi Sabililah
and once again he adopted the dual strategy
character
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The vulnerability of the dual character
strategy was proven once again with the raid
of the CIDG on the IIC in January 2005
The raid caused a massive dislocation and
disruption of the IIC and the flow of terrorist
financing was totally shattered
The Balik Islam Unity Congress, which was
acting as RSIM’s recruitment and alliance
wing was organizationally shattered
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In organizations such as the MILF and the ASG
which claim to struggle for the establishment of
an independent Islamic state in Mindanao, Zakat
contributes a lot in the advancement of their
programs, the procurement of firearms, and in
providing financial support for the families of
their members and other livelihood programs.
Zakat collected annually from Mindanao and
Saudi Arabia is of great value to the MILF and
ASG
Millions of pesos goes to the treasury of these
organizations although the annual collection
would differ every year
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Aside from Zakat collected from FilipinoMuslim workers in Saudi Arabia, the ASG are
also recipients of Zakat coming from wealthy
Arabs who were convinced that the ASG is in
pursuit of jihad.
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The MILF is more organized, well-oriented
and more active in the collection of Zakat than
the ASG
The MILF has supporters all over the Middle
East and Malaysia while the ASG has not
established a support group in other countries
except Saudi Arabia
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In the Philippines, the MILF has successfully
organized the imams, mosques, and
madrasahs so that the Zakat from these
would be credited to the organization
The ASG depend only on a few supporters,
mostly relatives and friends in the area
Both organizations have assigned people
tasked of collecting the money through Zakat
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During the time of Abdurajak Janjalani, efforts were
made to oblige the people in Sulu and Basilan to give
Zakat to the ASG from the proceeds of farm harvests
Graduates of Darul Imam Shafee were tapped to
organize lectures and seminars on Zakat to
encourage the people to take part in jihad by sharing
their wealth
The ASG also organized a group tasked to collect
donations during Friday congregational prayers and
the money would be spent in the procurement of
ammunitions, medicines, and military supplies
It is estimated that from 1992 to 2007, the ASG
collected almost P20 million from Zakat
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Although the MILF and the ASG do not
depend only on the Zakat collection from
Mindanao and Saudi Arabia, it remains a fact
that Zakat has contributed a lot in the
continuity of the struggle of these groups
Propaganda on jihad are maintained by the
MILF and ASG through video footages of
trainings and actual combat to win the
support of wealthy foreign individuals and
terrorist organizations
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Kidnapping is a major source of funding for
terrorist groups such as the ASG--Even some
members of the MILF have been involved in
kidnap-for-ransom operations
It is really the ASG which earned millions
from kidnapping operations which started in
1992 with the abduction of a businesswoman
from Davao City
The P1million ransom paid for several highpowered firearms and funded the group’s
operations
Statistics from the Crime Monitoring
Division of the PNP-DIDM
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The 2000 Sipadan kidnapping incident was the most
sensationalized kidnapping incident involving
terrorist groups
The group earned almost a billion pesos in ransom
payments for the release of 20 Caucasian hostages
At the time of this incident, the membership of the
ASG grew in number as new recruits came to Sulu and
became ASG members
The money paid for new firearms and made the
group more capable of launching more operations
out of Basilan and Sulu.
Ransom money was a big financial boost for the ASG
and it made them capable of launching bombing
operations in Central Mindanao as well as in Manila.
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Almost all rebel organizations in the
Philippines are known to engage in extortion-The New People’s Army, the MILF, MNLF and
ASG are among these groups
In Western Mindanao, millions of pesos went
to the ASG in the early 90’s from the
extortion of small businessmen in Basilan,
Sulu, and Zamboanga. Allegedly, a number of
businessmen were murdered when they
refused to cooperate with the ASG
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}
Extortion almost crippled the economy of
Basilan, Sulu and Zamboanga when the ASG
strengthened its extortion activities--several
business establishments closed down due
extortion
In early 2000 up to 2003 when the ASG
forged an alliance with the Jemaah Islamiyah
in Central Mindanao., the group began to
direct its extortion to big shipping and
transportation companies
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The 2004 Super Ferry 14 bombing is a classic
case of extortion by the ASG
The management of the ferry refused to give
in to the demands of the ASG to pay “taxes”
The Super Ferry 14 bombing is considered
one of the worst terrorist attacks in the
Philippines and one of the world’s deadliest
terrorist attacks at sea
REDENDO CAIN DELLOSA
The following analyses and
recommendations are personal and does
not reflect the views of the entire PNP
In the Philippines, NGOs have twice been
exposed as channels for terrorist financingduring Khalifa period and the time of
Hamoud Al-Lahim with the IIRO and IIC.
There is a need for a serious study on the
screening process for these kind of NGOs and
foundations for their character and
orientation makes for their easy manipulation
for fund generation and act as fronts for
radical groups
Today, the financial support for groups such as
the MILF and the ASG depend largely on the
efforts of their leadership to strengthen their
connections with like-minded organizations
abroad. They also rely heavily on propaganda
to promote their jihad amongst the locals
}
}
The nature of terrorist financing in the
Philippines is mostly on a “on a need basis”
There is always the possibility that these
groups would resort to criminal operations
such as kidnap for ransom and extortion as a
means for income generation
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}
The social dimensions
of the root causes of
terrorism in the
Philippines should be
further examined
There should be a
propaganda line and
legislative agenda that
would focus on issues
such as child warriors
and a social
investigation on the
background of a
terrorist individual,
his/her family, and the
community he/she lives
in
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In the case of a kidnap-for-ransom operation,
law enforcement should be the one in charge of
the negotiations because there is a crime being
committed
Negotiations are to be designed for maneuver
operations that would lead to eventual rescue
operations
There should be a special protocol between
principal stakeholders in so far as hostage/kfr
cases are concerned. National security should
always be of primary importance.
The necessary legal steps should be made so
that groups engaged in terrorist acts as
defined by the Human Security Act of 2007
shall be proscribed and categorized as
“terrorists” and that the financing of these
groups would be classified as a criminal act