Pangilinan raises ‘spying’ concern with Dito Tel partner China Telecom

Senator Francis Pangilinan on Wednesday raised security concerns about the memorandum of agreement between the Armed Forces of the Philippines and Dito Telecommunity Corporation, especially because Dito Tel’s partner China Telcommunications Corporation state-owned.

During the Senate plenary deliberations on the P191-billion proposed budget of the Department of National Defense for 2020, Pangilinan noted that Huawei, a Chinese company, has been banned by the Five Eyes member states.

Five Eyes is an intelligence alliance comprising Australia, Canada, New Zealand, the United Kingdom, and the United States.

Dito Tel, formerly Mislatel Consortium, consists of Davao businessman Dennis Uy’s Udenna Corporation (35%), Udenna’s subsidiary Chelsea Logistics Holdings Inc. (25%), and Chinese state-owned China Telecommunications Corporation (40%).

China has the Counter-Espionage Law of 2014 and the National Intelligence Law of 2017, which lays down instances in which citizens and organizations can be mobilized in support of espionage activities as well as information and intelligence gathering, Pangilinan said.

The senator noted the pertinent provisions of the laws as follows:

• Article 7 of the CNIL requires “any organization or citizen to support, assist, and cooperate with state intelligence work.”

• Article 14 of the CNIL authorizes the State Intelligence Work Organization to “require relevant organs, organizations, and citizens to provide necessary support, assistance, and cooperation.”

• Article 22 of CEL, states that “when state security organs investigate to learn of espionage conduct or gather relevant evidence, relevant organizations and individuals shall truthfully provide and must not refuse.”

“While Huawei is not involved directly in this memorandum of agreement, China Telecom is somehow involved because it is the China Telecom that is in partnership with Dito. China Telecom, unlike Huawei is a state-owned company. We are concerned about precisely the involvement of China Telecom,” Pangilinan emphasized.

“There is really a need to ensure that we have the highest safeguard in place with respect to this memorandum of agreement. I’m not placing any objection to the agreement, I would like the DND and AFP to consider these serious concerns,” he added.

Under the memorandum of agreement, third telco Dito Tel is allowed to build towers inside 130 military camps all around the country.

Defense Secretary Delfin Lorenzana earlier said the Dito Tel towers will be placed where the towers of Smart Communications and Globe are located.

Pangilinan said the Risk Analysis conducted by the AFP and provided to him by the DND together with a copy of the memorandum of agreement states that the AFP Fixed Communication System (AFP-FCS), which links together military camps and bases nationwide, is “susceptible to electronic eavesdropping and interception.” 

He said the analysis further noted that the “[e]quipment to intercept signals [is] readily and cheaply available.” 

To mitigate risks, the analysis prescribes that the AFP adopt physical access security and network security measures.

“In other words you can really intercept. In other words, we recognize that risk but we are also putting in place safeguards,” he said.

The Senate does not want to delay the third telco but “we would like to enter this with our eyes wide open.”

The senator also asked if the DND and the AFP have personnel that can read, write, and understand Chinese and computer languages so that they can effectively monitor IT activities that may compromise national interest.

Senator Panfilo Lacson, finance committee vice chairperson who defended the DND budget, said the AFP made the assurance that they have taken the needed precautions.

The memorandum of agreement states that either party can unilaterally terminate the agreement if there will be any violation.

“They have taken the necessary precautionary measures in the aspect of security kaya may clause na either party could terminate. That I think is the ideal language of the MOA. This is a better MOA. Once they see some infractions they can unilaterally terminate the agreement

“They continuously improve on that regulation, that particular document. I would assume that because they have to adjust to the demands of the times,” Lacson added.

During the committee hearing, Minority Leader Franklin Drilon also questioned the memo. —VDS, GMA News