Sandigan to sheriff: Seize P189 million of Velarde account

MANILA, Philippines – The Sandiganbayan ordered yesterday the seizure of some P189 million stashed in the supposed Jose Velarde bank account of former President Joseph Estrada.

The anti-graft court, in its amended writ of execution, ordered Sheriff Edgardo Urieta to seize a total of P189,700,000 from the Jose Velarde account deposited in Banco de Oro (BDO).

The Sandiganbayan issued the order to carry out the judgment of seizure of assets on the plunder conviction of Estrada on Sept. 12, 2007.

Barely six weeks after the anti-graft court found Estrada guilty of plunder and sentenced him to life in prison, President Arroyo pardoned the 70-year-old former movie star in what was described as part of a policy of releasing convicts aged 70 or above and for “national reconciliation.”

The presidential pardon, however, did not absolve the former leader of the obligation to return the money which formed part of the plunder case against him.

In the three-page writ of execution, the Sandiganbayan directed Urieta to seize the bank deposits “for the satisfaction of the judgment which is not covered by the executive clemency granted to Estrada.”

Despite the court’s order last September, it was only last month when government lawyers led by Special Prosecutor Dennis Villa-Ignacio had discovered the more than P1.1-billion assets allegedly deposited in the Jose Velarde account at BDO.

In the same decision, the Sandiganbayan ruled the Jose Velarde account is owned by Estrada and used as depository of his ill-gotten wealth.

The Jose Velarde assets at BDO (formerly Equitable PCI Bank) cover P500 million listed under “promissory notes and chattel mortgage.” 

It also includes P750 million in aggregate shares of Waterfront Philippines and Wellex Industries with an estimated value of P652.5 million, as well as cash deposits in a common trust fund investment account containing P95.759 million maturing on July 25 this year.

Villa-Ignacio said the stock investments and trust deposits at the BDO accounts are worth much more than the forfeiture cost slapped against Estrada’s assets.

Only P200 million have so far been recovered from the bank account of the Erap Muslim Youth Foundation.

Villa-Ignacio said the leftover of the BDO assets can still be forfeited in favor of the state if the government gets a judgment against Estrada in a new civil suit.

He explained the spare amount does not cover the award of damages that the prosecution is trying to secure against Estrada’s other known assets.

Villa-Ignacio said they are contemplating filing a new lawsuit to seize the alleged ill-gotten wealth which were not included in the Sept. 12 forfeiture judgment.

He said the prosecution panel had focused on securing a conviction against Estrada with the expectation that the anti-graft court would slap a bigger forfeiture cost against the deposed leader.

“But 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,” Villa-Ignacio pointed out.

He added the Bureau of Internal Revenue has a separate claim on the Jose Velarde account. The Sandiganbayan, however, did not elaborate on the amount due to the BIR.

In Estrada’s plunder conviction, the Sandiganbayan had ordered the forfeiture of a total amount of P545,291,000 deposited in the name and account of the Erap Muslim Youth Foundation; the amount of P189,000,000 deposited in the Jose Velarde account and the real property consisting of a house and lot known as the “Boracay Mansion” located in New Manila, Quezon City.