LEADERS from several Mandaya clans occupying a more than 19,000-hectare ancestral domain in Barangays Macambol and Cabuaya, Mati City, Davao Oriental say their once-unified Indigenous community has become deeply divided over the alleged mismanagement of multimillion-peso mining royalty funds from HallMark Mining Corporations (HMC), prompting renewed calls for transparency, accountability, and government intervention.
The dispute, which has simmered for years, erupted anew on Wednesday, July 22, after hundreds of Mandaya residents and Indigenous leaders reportedly prevented officials of the National Commission on Indigenous Peoples-Davao Region (NCIP-Davao) from entering their ancestral domain during a scheduled consultation on the renewal of two Mineral Production Sharing Agreements (MPSAs) covering portions of the mining area.
The consultation was intended to discuss the renewal of the MPSAs of Asiaticus Management Corporation under MPSA No. 106-2004-XI (Amended) and Austral-Asia Mining Corporation under MPSA No. 197-2004-XI (Amended). However, community members insisted that no discussions on mining should proceed unless longstanding questions surrounding the handling of mining royalty funds are first resolved.
The community members also called for the lawful implementation of the Community Resource Development and Management Program (CRDMP) in accordance with the Ancestral Domain Sustainable Development and Protection Plan (ADSDPP).
Several Indigenous Political Structure (IPS) leaders from the Mapinogos, Magtana, Valentin, Dianong, and Lemente clans gathered before the consultation and told members of the Davao media that the Mandaya community is no longer divided because of mining itself, but because of what they described as the alleged malversation and non-transparent handling of royalty funds intended for Indigenous beneficiaries.
The ancestral domain, identified as Ancestral Domain Claim No. R11-MAT-0814-170, spans more than 19,000 hectares overlooking the Pujada Peninsula and is home to around 300 full-blooded Mandaya households representing the five original clans, although more than 800 households currently reside within the domain.
Community says customary governance was bypassed
At the center of the controversy is the community's assertion that mining royalty proceeds should be managed through the Indigenous Political Structure (IPS) — the traditional governing body composed of elders and tribal leaders — and not solely through the Indigenous Peoples Organization (IPO), which serves only as the implementing body of programs approved by the IPS.
According to the tribal elders, customary law requires that all decisions involving ancestral resources and royalty distributions pass through the Council of Elders before funds are accessed or utilized.
They alleged that this process was followed during the first royalty release in 2023 but was disregarded the following year.
The first royalty tranche reportedly amounted to ₱13 million gross, with approximately ₱10 million net after taxes.
IPS leaders said the Council of Elders approved resolutions authorizing the release before portions of the funds were distributed to households and community programs.
However, they claimed that the 2024 royalty payment amounting to ₱24 million gross, or approximately ₱19 million net, was deposited directly into the bank account of the IPO without any corresponding resolution from the IPS Council of Elders.
For the elders, this marked the beginning of the conflict that now threatens the unity of the ancestral domain.
"Dapat sa IPS muagi, dili sa IPO (It should have passed the IPS, and not directly to IPO)," several tribal leaders repeatedly told reporters, emphasizing that the IPO merely implements decisions and does not possess authority over the tribe's customary governance.
Elders question millions in expenditures
The controversy intensified after elders requested financial records concerning the second royalty release.
According to IPS members, bank documents they later obtained allegedly showed that only around ₱1.4 million remained from the approximately ₱19 million deposited into the IPO account.
The elders alleged that more than ₱17 million had already been spent without prior approval from the Council of Elders and without community-wide consultations.
SunStar Davao requested access to the financial documents cited by the complainants to independently verify the allegations. However, due to the ongoing tension within the community, the complainants asked for more time, saying they are still organizing and preparing the documents for presentation.
Meanwhile, the leadership of the Indigenous Peoples Organization (IPO) has yet to publicly release a detailed accounting or liquidation report on the questioned expenditures despite repeated calls for transparency from members of the Indigenous Political Structure (IPS).
Chieftain allegedly removed
The financial dispute eventually evolved into a leadership crisis.
According to members of the IPS, after demanding a complete accounting of the royalty funds, several recognized tribal elders — including the community's chieftain — were removed from their customary positions.
The complainants alleged that the removal orders were issued by Barangay Kagawad Errol Alquino, who also serves as president of the Indigenous Peoples Organization.
They further claimed that the monthly honoraria of several elders were discontinued after they questioned the handling of the royalty funds.
The IPS maintains that under both customary law and the Indigenous Peoples' Rights Act (Ipra), an IPO has no authority to remove tribal elders or a chieftain because their legitimacy is derived from lineage, customary law, and recognition by the Indigenous community — not from an administrative organization.
As of press time, Alquino has yet to publicly respond to the allegations.
Elder breaks down during interview
One of the most emotional moments during Wednesday's media interview came from Simplicio Mendoza Jr., 66, an elder of the Magtana clan who said he has been serving the ancestral domain since the 1990s.
While recounting the events that led to the conflict, Mendoza became emotional, saying the community had been deprived of rights that should have been protected by the government.
"Ang NCIP office, naa sa ilahang mandato nga to protect pero unsay nahitabo karon, kami na noon ang gikuhaan og katungod. Amoa ni. Dili ni ilaha. Naa mi sariling pagdumala sa tribo (The NCIP office has the mandate to protect, but what is happening now is that we are the ones being deprived of our rights. This is ours. It does not belong to them. We have our own tribal governance)."
Mendoza said the tribe had long relied on its customary governance system in managing community affairs before disagreements over royalty management fractured relationships among leaders.
He added that the issue is no longer simply about money but about protecting the tribe's right to govern itself under its own customs and traditions.
Meanwhile, Vidal Mapinogos Jr., 56, an IP leader and a member of the Lemente clan, also echoed the same sentiment. He said the community has long been seeking greater transparency and accountability in the handling of mining royalty funds.
"Kaming mga lehitimo sa IPS, ipakita namo sa ilaha kung asa ni nga kwarta (We, the legitimate IPs, will show them where this money went)."
Consultation disrupted
The royalty dispute also overshadowed Wednesday's scheduled NCIP consultation on the renewal of mining agreements.
Residents reportedly refused to allow the NCIP delegation to proceed with the consultation, insisting that government officials should first resolve questions involving the royalty funds before facilitating any discussions related to mining operations.
Some members of the community likewise accused certain tribal officials of participating in the alleged mismanagement of the funds.
These allegations remain unverified, and those named have yet to issue public responses.
NCIP: We serve everyone
Following the confrontation, NCIP officials conducted a separate press conference together with another group of tribal representatives.
The discussions focused on leadership issues and community development concerns but did not directly tackle the allegations surrounding the questioned royalty funds.
IPO and Macambol Councilor Erol Alquino urged both factions to end the conflict and work toward unity.
"Unsay gusto na direksyon inyohang gusto? Tama na. Diria ta sa tarong (What direction do you want to take this? Enough. Let’s do what is right), Alquino said.
She also clarified that their group is not opposed to mining but urged mining companies to ensure that the people they engage with truly represent the interests of the Indigenous community.
"Dili mi anti-mina pero sutaa inyohang mga tao na ginapadala aning mina (What direction do you want to take this? Enough. Let’s do what is right), Alquino added.
Meanwhile, NCIP Davao Oriental Provincial Officer Julius L. Mabini, LL.B. said the agency does not favor either side and will submit an incident report regarding Wednesday's confrontation.
"Dili man mi kalaban. Ang NCIP walay gipaboran. Ang tanan among pag-serbisyohan (“We are not enemies. The NCIP does not favor anyone. We serve everyone)," he said.
₱32-million royalty remains on hold
IPS leaders said they have also sought the suspension of the 2025 mining royalty release amounting to ₱32 million, pending the resolution of the controversy.
According to community members, sustained protests, formal complaints, and petitions eventually resulted in the royalty fund being placed on hold while the dispute remains unresolved.
The leaders said they hope the freeze will prevent further disbursements until accountability mechanisms are completed and the community reaches consensus under its customary governance process.
As of press time, leaders from the five Mandaya clans are scheduled to convene in another tribal assembly to discuss the future of the ancestral domain and the unresolved royalty dispute that has divided one of Davao Oriental's largest Indigenous communities.
NCIP Region-Davao has yet to issue a separate statement specifically addressing the allegations raised by the IPS regarding the questioned royalty funds, while Alquino has not publicly responded to the accusations. No court has made a final determination on the allegations, and the matter remains under dispute. PR
