Espiritu to talk on P15-B GSIS, SSS trust funds

The prosecution in the ongoing impeachment trial of President Estrada is poised to drop another bombshell today by calling to the stand former Finance Secretary Edgardo Espiritu.

This developed as former Philippine Stock Exchange (PSE) president and chief executive officer Jose Luis Yulo Jr. testified yesterday that he was also pressured by the President to clear Best World (BW) Resources owner Dante Tan of charges of insider trading and stock price manipulation at the bourse.

The prosecution panel from the House of Representatives said Espiritu’s testimony will substantiate charges stipulated in the article of impeachment on betrayal of public trust.

Prosecutor Iloilo City Rep. Raul Gonzalez said Espiritu has some explosive things to say on issues related to the BW Resources scandal involving alleged insider trading and stock price manipulation.

"Matindi ito (This is serious). He (Espiritu) will shed light on the BW (stock price) manipulation," said private prosecutor Hernando Perez.

A highly reliable source from the political opposition told The STAR that Espiritu, who quit as finance secretary on Jan. 5 last year, will also talk about the investment of P15 billion in funds from the Social Security System (SSS) and the Government Service Insurance System (GSIS) in Equitable PCI Bank.

Mr. Estrada reportedly authorized the release of the P15 billion to Equitable PCI Bank, at the time headed by presidential friend George Go, making the merged bank the third largest commercial bank in the country.

Go resigned as Equitable PCI Bank chairman last month amid allegations that Mr. Estrada held accounts with the bank using the name "Jose Velarde."

The source said Espiritu was vehemently against the plan to infuse the P15 billion in funds from the two government-run pension agencies into a private bank, but his objections were ignored, prompting him to give up his finance portfolio.

The source claimed that Mr. Estrada received "reward money" from Equitable-PCI Bank because of his assistance. This gave rise to suspicions that some P1.2 billion allegedly deposited in the Velarde accounts came from that "reward money."

The prosecution earlier presented a canceled check amounting to P142 million in the name of Jose Velarde purportedly to buy the so-called "Boracay mansion" for presidential mistress Laarni Enriquez.

The fund was believed to have come from the P1.2-billion Velarde account.

Yulo also claims Estrada pressured him to clear Tan

Taking the stand on the 19th day of the impeachment trial, Yulo said the President has repeatedly told him Tan was a very good friend, who was a victim instead of a culprit in the BW scam.

"He wanted me to clear Dante Tan," Yulo told the court.

He quoted the President as saying Tan has been helping him since he was still Vice President.

Yulo, 53, said he felt that Mr. Estrada wanted him to confirm that Tan was cleared in an investigation report made by the PSE’s compliance and surveillance group (CSG) then headed by lawyer Ruben Almadro who preceded him on the witness stand.

The witness recalled that the CSG inquiry was triggered by "wild fluctuations" of the BW shares at the bourse.

The BW scam triggered the near collapse of the PSE.

Yulo said the problem prompted several meetings in October between him and then Securities and Exchange Commission (SEC) Chairman Perfecto Yasay Jr., Espiritu and Bangko Sentral ng Pilipinas Gov. Rafael Buenaventura, among other officials.

Yulo said during his meeting with Yasay on Nov. 3, the former SEC chief informed him that the President was asking for a copy of the CSG investigation report which was still incomplete at that time.

"He (Mr. Estrada) needs it very badly," Yulo quoted Yasay as saying, adding he was instructed to bring the report to the Palace on Nov. 4.

However, Almadro requested for at least five more days to complete the report.

In another meeting with Yasay and Almadro at the Ciudad Fernandina in Greenhills, San Juan on Nov. 26, Yulo said Yasay was very tense as he confided that he got several calls from Malacañang asking him to clear Tan in the BW scam.

Yulo confided that he also received several calls from the Palace.

In that meeting, Yasay lamented that they had no choice but to clear Tan as Mr. Estrada had wanted.

Almadro insisted, however, that they have found strong evidence against Tan, adding "we have a choice."

Yulo said he seconded Almadro’s observation that they have a choice. "We can tell the truth," he said.

Yulo said Yasay also informed him that Tan suddenly showed up at the door and joined the meeting.

"I felt we were set up," Yulo said. He recalled that Almadro fidgeted on his chair with the sudden appearance of Tan.

Yulo said when he finally brought a copy of Almadro’s report to Mr. Estrada at Malacañang on Feb. 14, he told the President that based on the inquiry, the anomalies committed by Tan were blatant violations of the PSE rules.

Mr. Estrada commented that if Tan was indeed, guilty, they could do nothing about it, but added that the BW owner was a close friend.

Yulo also admitted that it was highly irregular to give the President a copy of PSE investigation report on wrongdoings at the capital market.

"AS" is for "Atong, Singson — Maceda

Ambassador Ernesto Maceda, presidential spokesman for the impeachment trial, indicated that the initials "AS" indicated in the jueteng ledger submitted as evidence by the prosecution to the impeachment tribunal may stand for "Atong Ang/Singson" and not "Asiong Salonga" as alleged by Ilocos Sur Gov. Luis "Chavit" Singson.

Maceda issued the statement following news reports quoting Singson as saying Ang, another close friend of Mr. Estrada, may testify for the prosecution.

"As a lawyer, I will not use Atong Ang because he is not a credible witness because he is in the category of Chavit," Maceda said.

The ledger purportedly listed down the alleged recipients of jueteng protection money collected for Mr. Estrada by Singson.

Maceda said the ledger did not contain the name of the First Lady Dr. Luisa "Loi" Ejercito as among the recipients of the jueteng payolas, contradictory to Singson’s testimony that he also gave her big amounts out of his collections.

Singson’s accusations precipitated the impeachment trial against the President for alleged bribery, graft and corruption, betrayal of public trust and culpable violation of the Constitution.

Meanwhile, Philippine National Police (PNP) chief Director General Panfilo Lacson said yesterday he is willing to be a defense witness at the impeachment trial, but admitted he has not received any subpoena from the tribunal.

"I have not received formal notice from the defense panel yet. If I will be summoned or subpoenaed, then I will appear. It is simple. I will just say the truth about what I know," Lacson said.

Lacson’s testimony, if ever, would be used by the defense to demolish allegations by Singson, Mr. Estrada’s chief accuser, who claimed he delivered more than P400 million in jueteng payoffs and P130 million in kickbacks from tobacco excise tax remittance for his province.

It was held likely that Lacson will testify that the President ordered him to stop jueteng operations in the country, a move that will contradict Singson’s accusations that Mr. Estrada was receiving protection money from gambling lords.

Meanwhile, anti-Estrada protest actions continued to force him to step down voluntarily even as his impeachment trial was still underway.

At least nine anti-Estrada groups are set to convene today at the Century Imperial Suites on Tomas Morato and Timog Avenue in Quezon City to announce their next move.

These groups are the Estrada Resign Movement, Bagong Alyansang Makabayan, Council on Philippine Affairs, People’s Consultative Assembly, Couples for Christ, Bigkis Pinoy, United National Opposition, Kangkong Brigade and Kongreso ng Mamamayang Pilipino II.

They will also declare their stance on a proposal by Senate President Aquilino Pimentel Jr. to ban mass actions, especially those being held near the premises of the Senate where the impeachment trial is being held.

The militant Kilusang Mayo Uno (KMU) reiterated its clamor for the Senate to call to the stand presidential friends and mistresses before they could go into hiding.

KMU chairman Crispin Beltran said the testimonies of the President’s close allies and mistresses will prove his guilt on charges of graft and corruption.

Beltran said looking into the backgrounds of presidential mistresses Guia Gomez and Laarni Enriquez will show that they have enriched themselves with Mr. Estrada’s assumption of the presidency.

"The presidential mistresses should be made to take the stand and explain to the Senate court and the public how they obtained fat bank accounts.

On the other hand, the Concerned Lawyers for Moral and Effective Leadership (CLAMOR) is poised to file today a disbarment case against defense lawyer former Solicitor General Estelito Mendoza for alleged involvement in an attempt to subvert a piece of evidence in the impeachment trial.

The disbarment petition stemmed from the testimony of Equitable PCI Bank senior vice president Clarissa Ocampo that his former boss, George Go, and presidential friend Jaime Dichaves signed inside Mendoza’s office some documents meant to transfer the controversial Jose Velarde account held by Mr. Estrada to Dichaves.

CLAMOR noted that "the fact that the bank documents of Jaime Dichaves were antedated to Feb. 4, 2000 laid the basis for suspicion that Mendoza may have a hand in misleading the impeachment court. — With Christina Mendez