For Part 1:
FOR generations, the Mansaka have occupied the mountains, river valleys and upland communities of southeastern Mindanao, long before modern mining operations began extracting gold and other mineral resources from areas they consider part of their ancestral territory.
Today, more than 108,000 hectares of Mansaka ancestral domain spanning Pantukan, Mabini, Maco, Mawab, Nabunturan and Maragusan are at the center of a dispute that extends beyond mining operations themselves.
At the heart of the dispute is what happens to the mining money within the ancestral domain—from how much mining companies has paid in royalties, to which Indigenous Peoples organizations are authorized to receive and administer the funds, the role of the National Commission on Indigenous Peoples (NCIP), and how the money is ultimately used for projects and programs i s Peoples (IP) leaders and community members who spoke with VoxPop Davao during a private roundtable discussion on August 29 said they are not calling for the closure of Apex Mining Co. Inc.'s operations.
Instead, they are seeking transparency over what they claim is more than ₱700 million in cumulative mining royalties associated with mining activities within their ancestral domain.
The leaders questioned how much Apex has paid, which Indigenous Peoples organizations are authorized to receive and administer the funds, how the money has been disbursed, and whether projects and programs financed by the royalties have reached their intended beneficiaries.
They also want clarification on the respective roles and authority of the Indigenous Political Structure (IPS), Indigenous Peoples Organizations (IPOs) involved in administering community benefits, and the NCIP in relation to the recognition, registration and oversight of these structures.
The dispute therefore places under scrutiny the entire royalty trail—from the mining company's payments, to the Indigenous organizations that receive and administer the funds, and the government records that establish the authority and regulatory framework governing those arrangements.
The leaders said they want the mining company, the Indigenous organizations administering community benefits and the NCIP to provide records showing how royalty payments were computed, released, received, administered and spent.
Apex public records
The more than ₱700 million cited by the Mansaka leaders is a community claim raised during their discussion with VoxPop Davao on August 29 along Juna Subdivision, Davao City.
During the private roundtable, the leaders presented legal and financial documents to the journalists, including the writer of this report, in support of their concerns over the administration of mining royalties.
The documents provided by the community are being treated as source material for the report. Their contents, however, still require verification against records from the mining company, the Indigenous Peoples organizations involved and the National Commission on Indigenous Peoples (NCIP).
Separately, publicly available records reviewed by VoxPop Davao show that Apex Mining Co. Inc.'s audited parent-company financial statements reported royalties to Indigenous Peoples recognized under its cost of production amounting to ₱29.98 million in 2021, ₱44.90 million in 2022 and ₱48.33 million in 2023, or a combined ₱123.21 million for the three years.
Apex subsequently reported ₱63.09 million in 2024 and ₱103.23 million in 2025 under royalties to Indigenous Peoples.
Taken together, the royalty expenses reported by Apex for 2021 through 2025 amount to approximately ₱289.53 million.
These figures, however, do not establish that the Mansaka community received only ₱289.53 million over the entire period covered by its royalty arrangements with Apex. Likewise, the publicly available statements reviewed by VoxPop Davao do not independently establish the community leaders' claim that cumulative royalty payments exceeded ₱700 million.
The difference between the figures requires reconciliation, particularly as to the periods covered, the applicable royalty agreements and the categories of payments included in the community's computation and Apex's financial reporting.
Establishing the cumulative amount would require a year-by-year examination of the applicable royalty agreements, Apex's royalty computations and payment records, and the corresponding receipts, bank records and accounting documents of the Indigenous organizations that received and administered the funds.
For now, the more than ₱700-million figure remains a claim raised by the Mansaka leaders and supported by documents they presented to VoxPop Davao, while ₱289.53 million represents the total royalty expense to Indigenous Peoples publicly reported by Apex for 2021 through 2025 in the financial statements reviewed for this report.
What Apex's records establish
Apex's disclosures provide a documented history of its royalty arrangement with the Indigenous Cultural Community (ICC) of Maco.
In its audited financial statements, Apex said it entered into an agreement with the ICC of Maco and the NCIP on June 16, 2004 pursuant to Republic Act No. 8371, or the Indigenous Peoples' Rights Act (IPRA), and its implementing rules.
The agreement covered scholarships, health and welfare programs, payment for surface rights and royalties to the ICCs.
Apex's financial statements state that payment for surface rights was set at one percent of the company's gross production derived from the Maco mine, while royalty payment was based on one percent of gross income, defined by the company as sales less cost of sales.
The company's 2023 financial statements likewise state that the royalty payable to IPs was equivalent to one percent of gross income.
The arrangement is separate from the company's surface-right payments.
Apex reported that surface rights to Indigenous Peoples amounted to ₱70.26 million in 2021, ₱93.81 million in 2022 and ₱104.87 million in 2023.
For 2024 and 2025, the company reported surface-right payments of ₱134.44 million and ₱178.01 million, respectively.
Apex also separately reports community development expenses.
Its 2025 corporate social responsibility report said it spent ₱107.7 million for the three major components of its Social Development and Management Program, or SDMP, during the year. The company identified the Mansaka as the Indigenous Peoples associated with its host operations in Maco.
The Philippine Mining Act's implementing rules separately provide for royalties to Indigenous Cultural Communities and for development of host and neighboring communities. The rules state that, where prior informed consent has been secured, the parties shall agree on a royalty that may not be less than one percent of gross output, with the royalty forming part of a trust fund for the socioeconomic well-being of the ICC.
The Supreme Court has likewise distinguished royalty payments from other forms of financial assistance under mining agreements, noting that royalty payments are intended for the socioeconomic well-being of the concerned Indigenous Cultural Community.
The ₱700-million figure claims of Mansaka leaders
Community leaders interviewed by VoxPop Davao have referred to cumulative royalty payments reaching hundreds of millions of pesos, with some claiming that the total has exceeded ₱700 million.
According to the leaders, royalty payments disclosed by Apex Mining from 2021 to 2023 alone amounted to more than ₱200 million, which they said forms part of the cumulative amount exceeding ₱700 million. However, when asked to provide the figures and records covering 2024 and 2025, the leaders were unable to provide corresponding documents during the discussion.
The claim, however, does not match the royalty figures reported in Apex Mining Co. Inc.'s publicly available financial statements reviewed by VoxPop Davao.
Apex reported royalty expenses to Indigenous Peoples of ₱29.98 million in 2021, ₱44.90 million in 2022, and ₱48.33 million in 2023, or a combined ₱123.21 million for the three years—not more than ₱200 million.
The company subsequently reported ₱63.09 million in 2024 and ₱103.23 million in 2025, bringing the five-year total of royalty expenses reported in the company's financial statements to approximately ₱289.53 million.
What is an IPS under IPRA?
At the center of the dispute is a term that is often used interchangeably with an organization but has a different meaning under Philippine law.
The Indigenous Political Structure, or IPS, is expressly defined in Section 3(i) of IPRA.
Republic Act No. 8371 defines it as the organizational and cultural leadership systems, institutions, relationships, patterns and processes for decision-making and participation identified by ICCs/IPs.
The law gives examples such as councils of elders, councils of timuays, bodong holders and other bodies of similar nature.
The IPS, therefore, refers to the Indigenous community's own political and governance structure.
It is not simply the name of a corporation, association or non-government organization.
IPRA also expressly recognizes the right of ICCs/IPs to maintain and develop their own indigenous political structures.
Section 16 of IPRA provides that Indigenous Peoples have the right to participate fully, if they so choose, at all levels of decision-making in matters affecting their rights, lives and destinies through procedures determined by them.
The law also recognizes their right to determine their priorities for development affecting their lives, institutions, spiritual well-being and ancestral lands.
What is an IPO?
The Indigenous Peoples Organization, or IPO, is different. IPRA itself does not provide a separate statutory definition using the acronym “IPO” in the same way that it defines IPS.
Instead, Section 3(n) of IPRA defines a people's organization as a private, nonprofit voluntary organization of members of an ICC/IP that is accepted as representative of those ICCs/IPs.
NCIP Administrative Order No. 2, Series of 2012, then establishes the specific framework for the confirmation of Indigenous Political Structures and registration of Indigenous Peoples' Organizations.
Under the guidelines, the IPS establishes IPOs.
The IPO is given legal capacity to assist ICCs/IPs in protecting their collective rights and strengthening their political, economic and social systems or institutions.
IPS and IPO
An IPS is the indigenous governance structure. An IPO is an organization established under that indigenous governance structure and registered under the applicable NCIP rules.
The two are therefore connected but not identical.
NCIP Administrative Order No. 2 specifically states that the IPS shall create and establish IPOs and that the IPO must be registered.
The guidelines also require verification and validation of applications for confirmation of IPS and registration of IPOs.
The rules also address financial management
Administrative Order No. 2 provides that IPOs may assist the community in sourcing, managing, disbursing or using funds, appropriations or donations from legal entities for development of the ancestral domain or land.
The same provision refers to ensuring individual and collective accountability and responsibility for such funds. The rules also identify circumstances involving unauthorized negotiations, misrepresentation, violation of customary processes, loss of community trust, misuse of rights granted by the IPS or internal rules, and fraud that violates the collective interest of the community.
‘Dapat naa gyud kay accounting’
It is based on that institutional background that one former Mansaka community leader described the demand for financial records as a basic matter of governance.
“As a leader sa barangay, dapat nakabalo gyud ka pila ang mosulod nga kwarta, pila ang mogawas. So dapat naa gyud kay accounting. I-kuan gyud ninyo ba bago ninyo i-gawas ang kwarta. Hibaloan ta ug asa paingon, unya kanang naa gyud klaro nga liquidation (As a barangay leader, you should know exactly how much money comes in and how much goes out. You should have proper accounting. Before releasing any funds, you should know where the money is going, and there should be clear liquidation of all expenses),” the former Mansaka community leader, who requested anonymity to protect his life and his family’s, said.
The leader said even those occupying leadership positions had not necessarily been equipped to handle financial reporting.
“Kami gyud sa tinuod lang, nagpuno-puno ra gyud ko didto. Wala gyud ko anang karanasan. Kanang liquidation bitaw sa kwarta, ako mismo nga leader, wala gyud ko kabalo ana. Wala gyud mi hanaw ana (To be honest, I was just filling in there. I really didn’t have any experience. When it came to liquidating the funds, as a leader myself, I really didn’t know how to do it. We really had no knowledge of that),” he said.
The leader added that this experience influenced his desire for changes in the way community funds were managed.
“Maoy isa nga rason nga gusto gyud unta nako ba nga ma-usab na nga sistema. Sayang ang panahon ba nga naa ako diha, as a leader ta, naa man gud tay advocacy, gusto nato maayo pagka-dumala ang atong kwarta sa atong tribu (That is one of the reasons why I really wanted the system to be changed. It would be a waste of the time I spent there as a leader. We have an advocacy, and we want the funds of our tribe to be properly managed),”
‘Bayu-bayu na millions’
Another concern raised during the August 29 discussion was the perceived disconnect between the size of the royalty money and the economic condition of some members of the ancestral domain.
“Ang kwarta sa atong tribu, bayu-bayu na millions gyud na. Unya luoy kaayo ang atong community, makahilak ta (The funds of our tribe amount to millions. And yet, our community is in such a sorry state—it makes you want to cry).”
The leader described visits to communities within the ancestral domain and questioned whether ordinary members were receiving the intended benefits.
“Niana ko nga asa man ang atong kwarta nga dapat ang giingon nga laylayan, ang pinakailalom, makatilaw gyud ta (I said, where is our money, when those who are supposed to be at the grassroots, the poorest among us, should be the ones who get to benefit from it)?”
The IPS-IPO dispute
A former officer of a Mansaka organization described what he considered a structural problem involving the relationship between the IPS and IPO.
“Generally speaking, ang IPO mao na ang tuong kamot sa IPS (the IPO is the right hand of the IPS).”
He described the IPS as the traditional governance structure of the Mansaka.
“Ang IPS, mao na siya ang (that is the) Indigenous Political Structure. Mao na ang among katigulangan sa karaan namong gobyerno nga nag-govern hangtod karon (That is how our ancestors governed our traditional government, and that system of governance continues to this day).”
He then alleged that decisions normally handled through the organization's administrative mechanisms were being overridden by the IPS.
“Ang nahibaloan sa IPO, gina-overcome na sa IPS. Ang gusto nila, ‘Kami may hawod, kami may masunod (What the IPO knows is being overcome by the IPS. What they want is to say, ‘We are in charge; we are the ones who should be followed)!’”
The source said he had raised concerns about technical and financial decisions.
“Moingon gani ko sa ila, ‘Oy, kay kamo lagi hawod, pero talking of technicalities, dili man mo technical. Respetoa ang atong kultura, pero talking of disbursement of funds, etc., dili man mo knowledgeable ana. Dapat naa gyud pakig-collaborate nga sakto (I even told them, ‘You may be in charge, but when it comes to technical matters, you are not technical experts. Respect our culture, but when it comes to the disbursement of funds and other financial matters, you are not knowledgeable about those things. There should really be collaboration),” the source said.
He gave an alleged example involving a ₱5-million release.
“Kay sila may hawod, moingon dayon na si Kapitan, kanang IPS, ‘kami may hawod! Kinahanglan ipagawas ang 5 Million. Amo na nga decision!’ Nahimong ito-ito lang ang IPO. Naay board, walay silbi. Kay sila may hawod (Because they are in charge, the captain would just say, the IPS would say, ‘We are in charge! The ₱5 million must be released. That is our decision!’ The IPO ended up becoming merely a rubber stamp. There was a board, but it was rendered useless because they were the ones in charge).”
Two IPOs, one IPS
The same former officer said the Maco situation has been complicated by the existence of two organizations.
“Duha man gud ang IPO namo sa Maco. Ang SIMI (Sumpaw ng Inansabong Mansaka, Inc.) ug MADMI (Mandaya- Mansaka Ancestral Domain Management, Inc.). Ang IPO SIMI ug ang IPO MADMI, separate ang ilahang management. Pero ang under ana, isa ra ka IPS (Duha man gud ang IPO namo sa Maco. Ang SIMI (Sumpaw ng Inansabong Mansaka, Inc.) ug MADMI (Mandaya- Mansaka Ancestral Domain Management, Inc.). Ang IPO SIMI ug ang IPO MADMI, separate ang ilahang management. Pero ang under ana, isa ra ka IPS).”
The source further alleged that personal relationships among some leaders affected the distribution of authority.
“Ang nahitabo karon, naay favoritism. Tunga kay ang IPS naa may interest didto sa SIMI kay magbayaw ra man na sila. Ang Chairman sa SIMI ug ang Presidente sa IPS, magbayaw ra na sila (“What is happening now is that there is favoritism. On the one hand, the IPS has an interest in SIMI because they are related by marriage. The chairman of SIMI and the president of the IPS are related by marriage).”
The MADMI board
The former officer also questioned the role of the MADMI board in approving expenditures.
“Ang nahitabo pod sa MADMI, wala naisip ang Board. Kontrolado na sa IPS. Sila na ang masunod (What also happened with MADMI is that the Board was no longer taken into consideration. It is now controlled by the IPS. They are the ones calling the shots).”
The source said that projects should normally be covered by board resolutions.
“Dapat unta naay Board Resolution bago mahitabo ang isa ka program. Pero wala (There should have been a Board Resolution before the program took place. But there wasn’t one)!”
The alleged ₱19.5-million resort purchase
The most specific financial allegation raised during the August 29 discussion involved an alleged acquisition of a resort worth ₱19.5 million.
The former officer repeatedly qualified the allegation before describing the transaction.
“Bag-o lang… Nagpagawas sila og—allegation lang ni ha—but ang confirmed gyud, ₱19.5 million worth nga gi-purchase nila sa resort (Just recently… They issued—this is only an allegation— but what has been confirmed is that they purchased ₱19.5 million worth resort).”
The source questioned why the transaction allegedly did not undergo what he considered appropriate bidding or consultation.
“Dapat i-bidding pa man na unta kay dako na nga amount. Pero wala, ni-anunsyo ra sila, gi-istoryahan nga ‘Mao na ni ang kantidad.’ Wala na! Walay klaro nga konsultasyon.”
The question of projects
Other participants raised concerns over projects and expenditures that they said were not sufficiently explained to ordinary beneficiaries.
One participant said: “Dili nila gina- compute ang actual nga gidangatan.”
The participant also alleged that some leaders benefited more than ordinary members.
“Kanang mga leaders. Hayahay kaayo.”
Royalty is not the same as SDMP
Apex's own reports show why the financial categories must remain separate.
In 2025, the company reported ₱107.7 million in SDMP expenditures, including programs for host and neighboring communities. It separately reported ₱103.23 million in royalties to IPs and ₱178.01 million in surface rights to IPs in its audited financial statements.
The royalty arises from the agreement and applicable mining rules governing benefits to the Indigenous Cultural Community. Surface rights are payments associated with the use or rights over the surface. SDMP expenditures are community-development expenditures governed by the mining regulatory framework. Combining all three into a single “royalty” figure would obscure rather than clarify the financial trail.
Apex publicly documented support for Mansaka
The royalty dispute is occurring alongside Apex's continuing disclosure of its community programs.
Its 2025 corporate social responsibility report identifies the Mansaka as the Indigenous Peoples associated with its operations and lists host barangays in Maco, including Masara, Teresa, Mainit, Tagbaros, New Barili, New Leyte and Elizalde.
The report said Apex's 2025 SDMP spending included health, education, livelihood, public infrastructure and socio-cultural programs.
It reported assistance to thousands of students, community health programs, livelihood training, infrastructure support and other activities in host and neighboring communities.
Government’s revenue-disclosure framework
The issue of transparency in mining revenues is not entirely new to government institutions.
Records of the Philippine Extractive Industries Transparency Initiative show that Maco was among the pilot municipalities included in revenue-payment disclosure work.
The Philippine EITI's records show that NCIP-Comval was preparing reports involving FPIC and memorandum-of- agreement disclosures, while Apex Mining was among the entities preparing revenue-payment disclosures. The records also identify IP communities in Maco among the entities involved in royalty-revenue disclosure.
NCIP's role
Under IPRA, the NCIP is the primary government agency responsible for formulating and implementing policies, plans and programs to recognize, protect and promote the rights of ICCs/IPs.
Its role includes matters involving ancestral domains, self-governance, customary institutions and Indigenous Peoples organizations.
Administrative Order No. 2, Series of 2012, provides the formal process for confirming IPS structures and registering IPOs.
The guidelines require verification and validation and provide for documentation of leadership structures, decision-making processes and other information relevant to the authenticity of the indigenous governance structure.
The same guidelines recognize the need to interface indigenous systems of governance with the mainstream legal system.
They also state that IPOs are established by the IPS and must be registered.
The Macambol parallel
The Mansaka dispute has emerged alongside a separate royalty controversy in the Mandaya ancestral domain covering Macambol and Cabuaya in Mati City, Davao Oriental.
VoxPop Davao's Part I of this investigation documented how Mandaya leaders publicly demanded transparency over mining royalties and community funds and questioned which organization had authority to receive and administer mining-related benefits.
The dispute became public on July 22, when Indigenous community members blocked NCIP-Davao officials from entering the area for a consultation involving the renewal of mining agreements.
The Macambol controversy involved questions over royalty payments, SDMP funds, Indigenous leadership and the authority of the organization administering benefits.
The Mansaka leaders interviewed for this Part II raised a similar underlying question. They are not asking only how much a mining company pays. They are asking what happens after the payment enters the Indigenous community's financial system.
Writer’s Note: All sources cited in this special report requested anonymity due to concerns over possible repercussions and for their security. This report is part of a continuing series examining allegations raised by Indigenous Peoples leaders and community members regarding the administration, transparency and accountability of mining royalty funds, including concerns involving Indigenous Peoples organizations and the National Commission on Indigenous Peoples (NCIP).
This is a continuing investigation, and additional reports may be published as further documents or verifiable information become available. VoxPop Davao remains open to responses, clarifications and relevant records from all parties involved, including the NCIP, mining companies, Indigenous Peoples organizations and community leaders, to ensure that all sides are given an opportunity to respond and that the reports remain fair, accurate and balanced.
