‘Estrada loaned Gatchalian P500 M for casino project’

Ousted President Joseph Estrada loaned his friend William Gatchalian P500 million to convert the Gatchalian-owned Davao Insular Hotel into a casino, overall Deputy Ombudsman Margarito Gervacio said yesterday.

Gervacio heads the four-member panel from the Ombudsman that has been tasked to investigate the plunder charges filed against Estrada.

However, Gervacio told The STAR yesterday he is not sure if the information is true because he had only heard about it from his golfing buddies.

"I’m not saying this is true, but this is what my friends told me because they know I am involved in this investigation," he said. "It is to the effect that Gatchalian’s hotels will be transformed into casinos. That is the belief they have in Davao."

Gervacio said the P500 million was part of the loan to the Wellex Group from the "Jose Velarde account" in Equitable-PCI Bank as testified by bank executive Clarissa Ocampo during Estrada’s impeachment trial.

Gervacio said Gatchalian used part of the P500 million to buy the Davao Insular Hotel from the Ayalas in 1999 to add to his hotel chain, which includes the two Waterfront Hotels in Cebu City and Mactan, and Fort Ilocandia in Ilocos Norte.

"There is talk to that effect," he said. "This information definitely came from people I have known in the golf community."

But Gervacio said Gatchalian was not able to get a casino license for Davao Insular Hotel from the Philippine Amusement and Gaming Corp. (PAGCOR).

"The information is in fact raw but these people told me that that must be the reason why the Davao Insular Hotel was closed after the acquisition, for renovation or maybe because they are converting it into a gambling casino," he said.

Gervacio said Estrada’s friend, Eddie Gaisano, who owns the Grand Mercure Hotel, "felt threatened" by reports that a casino would be built in the nearby Davao Insular Hotel.

In an interview over radio station dzMM yesterday, Justice Secretary Hernando Perez said the Arroyo administration wants Gatchalian to testify against Estrada.

Perez said Gatchalian "may have problems" if he does not help the government pin down Estrada.

"He will have trouble except if he helps (us) and reveals everything (he knows) about President Estrada’s participation (in alleged illegal activities)," Perez said. "His testimony will be very material (in the case against Estrada)."

Perez said Gatchalian’s name came up after Federico Pascual, former president and general manager of the Government Service Insurance System (GSIS), said in a sworn affidavit that Waterfront Phils., Inc. had invested in Belle Corp., which held the jai alai franchise.

Gatchalian can execute an affidavit to corroborate the statement of Pascual that Waterfront had placed money in the corporation in which another Estrada associate, Jaime Dichaves sits as member of the board.

Pascual and Carlos Arellano, former chairman of the Social Security System (SSS), said Estrada had forced them to invest P1.8 billion in GSIS and SSS funds in Belle Corp., as attested by William Ocier, a director of the corporation. – With Mayen Jaymalin