Government mulling another lawsuit against Erap

MANILA, Philippines – In a move to recover more alleged ill-gotten wealth, the government is contemplating on filing another lawsuit against former President Joseph Estrada.

The new civil lawsuit, government prosecutors said, is not covered by the forfeiture judgment in the Sandiganbayan verdict of Sept. 12, 2007 which convicted the former leader of plunder.

“The government can still go after other assets of Erap (Estrada). The  Special Division did not bar us (from doing that). There was nothing in the verdict that prohibits the filing of a civil case,” said government lead counsel Special Prosecutor Dennis Villa-Ignacio.

“That will be a separate proceeding. The basis is already there, the Sandiganbayan verdict declaring that former President Estrada is Jose Velarde, despite his denials. Remember, Estrada and his lawyers have already accepted it (ruling), coupled with the fact that they waived the appeal,” Villa-Ignacio added.

His statement of the plan was made after the discovery last month of a P1.1-billion Jose Velarde account in Banco de Oro (formerly Equitable PCI Bank)  and the recent pronouncement of the Special Division that prosecutors should have sought damages against the convicted former president for his crimes.

The amount of the Jose Velarde account covers P500 million listed under “promissory note and chattel mortgage” P450 million shares of Waterfront Philippines with an estimated value of P427.5 million; P300 million shares of Wellex Industries worth some P84 million; and cash deposits in a common trust fund investment account containing P95.76 million maturing by July 25 this year.

Villa-Ignacio said that the stock investments and trust deposits at the BDO under IMA personal trust account number 101-78056-1 are worth much more than the forfeiture cost slapped against Estrada’s assets.

Covered only by the forfeiture order were P545.3 million alleged jueteng collections and P189.7 million commission from the purchase of Belle Corp. shares and the Boracay Mansion in New Manila, Quezon City.

Of the P735 million money judgment, only P200 million have been recovered from the bank account of the Erap Muslim Youth Foundation (EMYF), leaving a balance of P535 million that may be charged against the Velarde assets in BDO.

Villa-Ignacio said the leftover of the BDO assets, worth about P565 million, can still go to the State if the government gets a forfeiture judgment against Estrada in the new civil lawsuit.

The spare amount does not cover the award of damages that the prosecution will try to get against Estrada’s other assets.

Villa-Ignacio said the prosecution focused on securing a conviction against Estrada and had hoped that the Sandiganbayan will slap a bigger forfeiture cost against the deposed leader.