The Armed Forces of the Philippines (AFP) has bared the modus operandi used by the New People’s Army (NPA) in extortion activities and warned the public against falling for the schemes.

Brig. Gen. Francisco Cruz Jr., AFP-Civil Relations Service (CRS) commander, said documents seized from arrested NPA members, reveal that NPA executes several kinds of fund raising activities: Regular extortion or Rebolusyonaryong Buwis sa Kaaway na Uri (RBKU) and its Permit to Campaign (PTC) and Permit to Win (PTW) fees during the election season.

Cruz said the RBKU is the NPA’s principal means of funds for logistics procurement, and Communist Party of the Philippines (CPPA) executive committee has issued guidelines for the group’s fund-raising.

He said the NPA’s modus operandi in exacting RBKI begins with the identification, through its local unit, of the potential target. The rebels then investigate the potential victim’s income for accurate computation of taxes and then pre-determine the minimum and maximum amount to be paid by the target.

During negotiations, armed NPAs are usually in attendance to pressure the target to yield.

The rebels’ main targets are agro-industrial firms, mining companies, bus operators, construction companies undertaking government projects, and small businesses such as sari-sari stores, said Cruz.

“Standard rates are six to seven percent of the gross income for logging operators and P1 million to P2 million for bus companies. For big ranch proprietors, the NPA’s annual collection is based on every cow head; for agricultural landowners, the NPA’s collection depends on the hectares owned such as 20-25 percent of net income for 151 hectares or more. Payments have to be in P100 or P1,000 bills; while small bills, cheques, and real properties are not accepted. The target may substitute monetary payment with a computer or high-powered firearm, mobile phones, medicines and equipment, among others,” Cruz said.

“For long-term targets, renegotiations are conducted again after a year; and an annual increase is imposed,” he said.

The CRS commander said that collected fees are immediately remitted to the NPA’s higher organization with 80 percent forwarded to the NPA’s national finance committee (NFC) while the remaining 20 percent is retained by the lower organizations.

In 2009, the highest collecting rate came from business establishments with P42.2 million, followed by logging concessionaires with P28.7 million.

“As its policy, the NPA metes out punishment to those who refuse to pay and to those who renege on their payments. In 2009, the NPA attacked at least 61 business establishments with an estimated P103 million n damages for non-payment of extortion fees.,” said Cruz.

“The NPA is not selective of its victims for as long as it can exploit their vulnerabilities. By extorting from the simple farmers and workers, obstructing aid and progress, the NPA is further impoverishing poor households and villages,” he said.