Philippine senator won't rule out ex-mayor facing charges is a Chinese spy

MANILA (Reuters) - A Philippine senator leading an investigation into a former mayor's alleged links to Chinese criminal syndicates said on Friday she would not rule out her possible involvement in espionage.

Alice Guo, who ran for mayor of Bamban as a Filipino but is also known as Chinese national Guo Hua Ping, is facing criminal charges that include graft, stemming from accusations she abused her power to allow offshore gambling to flourish in her town. 

"I'm not yet prepared to conclude that she is not involved, or that the people associated with her are not involved in espionage," Senator Risa Hontiveros told foreign correspondents. 

A senate committee headed by Hontiveros launched an investigation into Guo in May after a casino raid in Bamban in the province of Tarlac uncovered what law enforcers described as scams run from a facility on land that she partly owned.

In earlier hearings, Hontiveros had asked Guo if she was an "asset" for China. Guo, who maintains she is a natural-born Philippine citizen, has denied she is a spy, as well as other accusations against her, calling them malicious. 

Her case has gripped the Philippines at a time of growing suspicion about China's activities following an escalation of disputes in the South China Sea where the two nations have overlapping claims.

China's embassy in Manila and Guo's lawyer did not immediately respond to requests for comment on the remarks by Hontiveros. 

A court postponed Guo's scheduled arraignment on Friday while it decides on her plea to have the case dismissed. She arrived in court wearing a mask and ballistics helmet. 

Bamban mayor since 2022, Guo was removed from office by the Ombudsman last month for grave misconduct. She also faces a money laundering complaint at the Department of Justice. 

Philippine President Ferdinand Marcos Jr has urged Guo to disclose how online gambling businesses targeting customers in China, where gambling is illegal, had branched into crime. 

Before Philippine Offshore Gaming Operators, better known as POGOs, were outlawed in the Philippines, China had urged Manila to ban online gaming to support its own crackdown on cross-border gambling.

"In the case of the rise of POGOs and of people like Guo Hua Ping, we have seen numerous and deep links to transnational crime syndicates that have victimised not only our own citizens here in the Philippines, but also citizens from across the world," Hontiveros said.

"It's bigger than the Philippines," Hontiveros said, adding the senate's probe had "only started to scratch the surface". 

(Reporting by Mikhail Flores and Karen Lema; Editing by Martin Petty)