US TAGS RP AS DRUG SMUGGLER'S PARADISE

ILLEGAL drugs trade in the Philippines has evolved into a
billion-dollar industry in the past few years, according to the 2006
International Narcotics Control Strategy Report (INCSR) released
recently by the US Department of State.

"The Philippines is a narcotics source and transshipment country.
Illegal drugs enter the country through seaports, economic zones, and
airports. With over 36,200 kilometers of coastline and 7,000 islands,
the Philippine archipelago is a drug smuggler's paradise," according
to the annual report, which is required by the US Congress.

The report said the Philippines is a transshipment point for export of
crystal methamphetamine (shabu) to Japan, Australia, Canada, Korea,
and the United States (including Guam and Saipan).

"Commercial air couriers and express mail services remain the primary
means of shipment to Guam and to the mainland US, with a typical
shipment size of one to four kilograms. There has been no notable
increase or decrease in transshipment activities in 2005," the report
said.

The report added that lack of equipment, training, and intelligence
sharing as well as corruption and inefficiency among law enforcement
and government officials prevent the government from effectively
eliminating the illegal trade.

Divided into individual country reports, the INCSR describes the
efforts of key countries to attack all aspects of the international
drug and chemical control activities.

The report tackles illegal drug and chemical control activities as
well as money laundering and financial crimes.

The report also described the Philippines as a regional financial
center which continues to experience an increase in foreign organized
criminal activity from China, Hong Kong, and Taiwan.

"Reportedly, insurgency groups operating in the Philippines fund their
activities, in part, through the trafficking of narcotics and arms, as
well as engaging in money laundering through alleged ties to organized
crime," it added.

"The proceeds of corrupt activities by government officials are also a
source of laundered funds," it added.

The report said most of the narcotics transiting through the
Philippines is traded using letters of credit.

"There is little cash and negligible amounts of US dollars used in the
transactions, except for the small amounts of narcotics that make it
all the way to the United States for street sale. Drugs circulated
within the Philippines are usually exchanged for local currency," it
stated.

The report said that while counter-narcotics law enforcement in the
Philippines is a high priority, it suffers from a lack of resources.

"Law enforcement efforts are considered to be effective within the
confines of their inadequate funding; there were no significant
changes," the report said.

"Major evidentiary and procedural obstacles exist in the Philippines
in building effective narcotics cases. Restrictions on the gathering
of evidence hinder narcotics investigations and prosecution.
Philippine laws regarding electronic surveillance and bank secrecy
regulations also constrain the ability of prosecutors to build
narcotics cases," it added.

The report said corruption among the police, judiciary, and elected
officials continues to be a significant impediment to law enforcement
efforts.

"The Philippines has criminalized public corruption in narcotics law
enforcement through its Dangerous Drug Act (DDA), which clearly
prohibits senior GRP officials from engaging in, encouraging, or
facilitating the illicit production or distribution of such drugs or
substances, or the laundering of proceeds from illegal drug actions,"
the report said.

However, it added that there were no significant arrests or
prosecutions under this law in 2005.

"There have been a few arrests of PNP and PDEA officers for dealing
drugs and selling seized chemicals, both of which are also prohibited
under the DDA," the report said.

It said the US government has no evidence that any senior Philipine
officials engage in, encourage, or facilitate the illicit production
or distribution or illegal narcotics, or participate in the laundering
of proceeds from illegal drug transactions.

Last February, police raided a cluster of drug dens inside a shanty
neighborhood in Pasig City and took more than 300 people into custody,
including about 50 women and children.

The drugs dens, described "one-stop-shop shabu restaurants," were
located just 500 meters from a police precinct and the Pasig City
Hall. At the "restaurants," drug users could rent shabu paraphernalia
and order grams of shabu.

Called "the poor man's cocaine," shabu is regarded as the top choice
of Filipino drug users followed by marijuana.

The Philippines is one of the world's three largest producers of
methamphetamine, or shabu, according to the United Nations Office on
Drugs and Crime. The UNODC report said the main production sites in
Asia were in China, Burma and the Philippines.

An earlier UNODC report based on 2000 figures showed that 2.8 percent
of Filipinos aged 15 to 24 were shabu users.