MANILA, Philippines - The communist New People's Army is set to rake in billions of pesos from extortion this year, boosted by protection money forked out by politicians contesting the May elections, a military official said Monday.

Col. Daniel Lucero, Philippine Army civil military operations chief, said the military has been receiving reports of NPA extortion schemes since the 2001 elections. He said the military estimates that the NPA raked in close to P3 billion in extortion fees from candidates during the 2007 mid-term elections.

"This year, the [NPA] expects to earn from P3 billion up to P5 billion. This is very disturbing. We are asking for help from experts. There used to be different types of permits including permit to campaign. Now there's a PPP (permit to post posters). You cannot stick a poster in these areas without that permit," he said in an interview on ABS-CBN's "Umagang Kay Ganda."

Lucero said NPA surrenderees confessed that 80% of the money collected during the 2007 elections were pocketed by their superiors while the rest went into the organization. He said some NPA guerrilas voluntarily surrendered after seeing their leaders keeping the money for themselves.

Military spokesman Maj. Eugenio Julio Cosias earlier said the 4,500- strong rebel group has retained the ability to raise funds by threat or use of force.

"The going rate is from P5,000 to P20 million (about 109-435,000 dollars) from municipal councilor to president. The rates may vary in different regions and depending on the candidate's affinity to the (rebels)," he said in a statement.

Cosias said the NPA also extorted P42.2 million from business establishments across the country last year, with another P28.7 million separately collected from logging firms.

"The main targets are agro-industrial firms, mining companies, bus operators, construction companies undertaking government projects, and even small businesses such as (neighborhood grocery) store owners," he said.

He said the NPA levies standard rates of 6%-7% of the gross income for logging operators, P1 million-P2 million for bus companies while for big ranch proprietors, its collection is based on the number of cattle.

For big landowners, the NPA takes 20%-25% of net income for 151 hectares or more.

He said the rebel collectors demand payments in 100- or 1,000-peso bills only although payments may be converted into goods such as computers, guns, mobile phones and medicines.

The NPA punishes those who refuse to pay or who renege on their payments, Cosias said, adding that rebel attacks on at least 61 businesses last year caused damage worth P103 million.

Lucero, meanwhile, said the military is studying the possibility of filing criminal charges against candidates who give money to the rebel group. He said candidates who have been approached by the NPA to give money should contact the military hotline at 0917-500-2769.

NPA defends 'permit-to-campaign' scheme

The Commission on Human Rights (CHR) earlier scored the NPA's "permit-to-campaign scheme" as a violation of the rights of the candidates.

"The 'Permit to Campaign Scheme' which, in plain language, is a form of extortion being perpetrated by the New People's Army and other non-state actors, is repugnant in all possible ways to valued human rights principles and standards, not only of candidates and political parties, but of the individual voters as well," it said in an advisory.

"This practice arrogates to the requiring group the powers rightfully belonging to the people and lawfully designated authorities. It disregards the rule of law, and scoffs at the principles of free, fair and genuine elections," it added.

The Communist Party of the Philippines, meanwhile, defended its guidelines and policies, which it said is required in areas controlled by the rebels.

In a statement posted on its website, the CPP-NPA said genuine democratic elections are conducted in the revolutionary areas "where the masses are able to freely select their officials who serve them under a truly democratic system."

"The principal objective in issuing these guidelines is to ensure that election-related campaign activities do not violate the people's rights and interests, and are conducted in an orderly and peaceful manner. Many political parties and candidates who have sincerely abided by these guidelines have in fact become allies of the revolutionary movement and have been helpful in practical cooperative undertakings beneficial to the masses," the group said.

It added: "Political parties and their candidates voluntarily meet with representatives of the revolutionary authorities in order to discuss these guidelines and forge commitments to respect and uphold the policies and measures contained therein. These meetings are freely, even if secretly, conducted at the national, regional, provincial and local levels."

The CPP said the guidelines forbid the entry of armed thugs, including military and police escorts as well as private armies accompanying candidates. They also prohibit the exercise of dirty election tactics including the use of bribe money to buy votes. With a report from Agence France-Presse