Defense witnesses testify on Erap assets

An official of the Social Security System testified at the Sandiganbayan yesterday that three businesses that former President Joseph Estrada did not declare in his 1998 statement of assets and liabilities and net worth (SALN) have been suspended from SSS coverage since 1989.

Taking the witness stand, Lorna Dumlao, SSS membership section team head, identified before a special division of the anti-graft court the three firms as All Hot Soup Inc., ADE Food Inc. and FELT Food Services Inc.

"Based on records, there has been no showing that these have been reactivated," said Dumlao when asked by former senator Rene Saguisag, one of Estrada’s lawyers, if she was aware that these businesses have been reactivated.

Dumlao told the court that All Hot Soup Inc. was suspended from SSS coverage on Nov. 7, 1989; ADE Food Inc. on June 6, 1988; and FELT Food Services Inc. in December 1986.

The SSS coverage for the employees of the three firms was stopped after the SSS’s collections department had reported that the businesses could no longer be located at their stated business addresses, she added.

Dumlao said the site in Greenhills, San Juan given by All Hot Soup as its business address was reported to the SSS by Susan Buenaventura, Ortigas Corp. secretary, as already demolished at the time of inquiry.

The SSS learned that ADE Food Inc., which stated its business address inside the Greenhills Shopping Center, could not be located as of the inquiry made on April 15, 1988, she added.

Dumlao also presented to the court documents placing the three businesses under suspension from SSS coverage.

During direct and cross-examinations, Estrada said he did not commit perjury when he did not include the three businesses in his 1998 SALN as these were no longer in operation at the time of filing.

However, government prosecutors said Estrada could not show any documentary proof to show that these businesses were no longer operational.

Special Prosecutor Dennis Villa-Ignacio told the court that the prosecution is reserving its turn to cross-examine Dumlao for the hearing tomorrow.

They still have to scrutinize the documents that she had presented, he added.

In an interview with reporters after the hearing, Villa-Ignacio said "temporary suspension" is not the same as dissolution of the businesses.

"Dissolution is different from suspension," he said. "Businesses are given 50 years by the SEC (Securities and Exchange Commission) to operate and they could be reactivated."

Meanwhile, the three-member Sandiganbayan special division yesterday rejected the request of Estrada to be allowed to personally appear at the Pasig City prosecutors office on Friday and file his libel suit against former beauty queen Joelle Pelaez.

The court approved Villa-Ignacio’s recommendation that a prosecutor be brought to Estrada’s Tanay detention place to serve as administering officer.

The sworn complaint will then be handed to Estrada’s lawyers for filing.

"We have approved the prosecution’s recommendation to just allow a prosecutor to go Tanay," said Sandiganbayan Presiding Justice Teresita Leonardo de Castro, special division chairwoman.

Despite the resolution, retired Manila fiscal Jose Flaminiano, one of Estrada’s lawyers, made a final appeal to the court, arguing that sending a prosecutor to Tanay would be inappropriate as it could give an impression that Estrada is being given special treatment.

However, de Castro told Flaminiano that the prosecutor to be sent to Tanay would be from the Office of the Solicitor General.

Meanwhile, the special division still has to resolve another defense request to allow Estrada to undergo an executive check-up at the San Juan Medical Center. — Mike Frialde