Justice Secretary Jesus Crispin Remulla declared Shiela Guo unreliable to be a state witness against dismissed Bamban Mayor Alice Guo.
Remulla cited inconsistencies in Guo's statements and expressed doubts about her credibility, stating the necessity of her testimony must be proven.
The National Bureau of Investigation had previously identified Shiela Guo as Zhang Mier, a Chinese citizen suspected of fraudulently obtaining a Philippine passport.
During a Senate hearing, Guo admitted to being born in China and coming to the Philippines in 2001.
Despite her admissions, she denied knowledge of raided POGO operations and the whereabouts of Alice Guo.
The Department of Justice-National Prosecution Service has recommended filing charges against Shiela Guo for Disobedience to Summons and allegedly using a false Philippine passport.
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