The Communist death squad Alex Boncayao Brigade issued two statements last week claiming responsibility for the murder.
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National police spokesman Superintendent Enrique Galang said Batongbacal headed the north partisan platoon of the Alex Boncayao Brigade.
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The arrests brought to 18 the number of suspected Alex Boncayao Brigade members arrested by the government since December.
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Later, radio station DZRH said a caller claimed responsibility in the name of the Communist rebel Alex Boncayao Brigade.
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The Alex Boncayao Brigade is a special group formed by the communists to assassinate corrupt police officers and businessmen in the capital.
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The Alex Boncayao Brigade, a communist hit squad, claimed responsibility for both shootings, saying Ty and Yu oppressed their workers.
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In its statement, the Alex Boncayao Brigade denounced what it called the traditional politics of " gold and guns ."
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Police said Romeo Dacles, allegedly a commander of the Alex Boncayao Brigade, was captured last Saturday in Cavite province, south of Manila.
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Police said Joel Castillo is suspected of having been involved in the deaths of at least eight people believed killed by the Alex Boncayao Brigade.
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One of the breakaway groups was the Alex Boncayao Brigade, blamed for the assassination of more than 100 officers and local officials in the capital in the 1980s.