Document names Erap as the real ‘Jose Velarde’

MANILA, Philippines - Lawyers for The Wellex Group Inc. (TWGI) owned by businessman William Gatchalian submitted a document to the Sandiganbayan naming deposed President Joseph Estrada as the real owner of the Jose Velarde account. Gatchalian's firm produced the document on Monday before the Sandiganbayan's Special Division in support of its claim that it has paid in full its P500 million loan drawn from the Velarde account – not to the Equitable-PCI Bank (now Banco de Oro-Unibank) which held the deposits - but directly to the account owner who was simply referred to as "the principal." The two-page document dated March 30, 2001 directly identified Estrada as "the principal." The document was written on a letterhead of the law office of Poblador Bautista and Reyes, counsel for EPCI Bank and was addressed to "Mr. Joseph Ejercito Estrada" of "No. 1 Polk Street, North Greenhills, San Juan, Metro Manila" and was signed by lawyers Dino Vivencio Tamayo and Antonio Hernandez. The first paragraph of the letter informed Estrada that: "On behalf and upon authority of our client, Equitable PCIBank, we hereby terminate Investment Management Account No. 101-78056-1 which you entered into in the name of 'Jose Velarde' as Principal, with the Bank last February 4, 2000. The termination shall become effective on 17 May 2001." No bearing in Erap plunder case Special Prosecutor Dennis Villa-Ignacio, who led the legal panel that secured the guilty verdict against Estrada for plunder on September 12, 2007, said that had the Wellex document surfaced during the plunder trial, prosecutors could have won the entire Velarde deposits for the government. In convicting Estrada, the graft court forfeited only the P189 million commission from Belle Corporation shares purchased by SSS and GSIS; and the P545,291,000 that it held to be the total amount amassed from jueteng collections. This sum includes the P200 million that went into the account of the Erap Muslim Youth Foundation which is now in court custody. This despite the prosecution's claim that the aggregate amount of Estrada's ill-gotten wealth was over P4,09 billion - of which P3.2 billion was kept in the Jose Velarde account at one time. In limiting the forfeiture cost, the court declared: "The prosecution likewise failed to offer evidence on the alleged illegal sources of the numerous deposits in the Jose Velarde account which belongs to former President Estrada, except for the commission received from the sale of Belle shares to GSIS and SSS and the money collected from illegal gambling. The Anti-Plunder Law requires the prosecution to prove the series or combination of overt or criminal acts through which ill-gotten wealth deposited in the Jose Velarde account was amassed, accumulated or acquired. The prosecution failed to discharge this burden of proof." Villa-Ignacio admitted the Wellex document no longer has any bearing on the plunder case which has become final and executory. "Sayang, ngayon lang lumabas yan (It's such a waste that it surfaced only now). At this point, it will only serve to bolster public perception that Erap (Estrada) really amassed huge sums during his presidency," Villa-Ignacio said. BIR had a copy Strangely enough, the last page of the letter showed the government had a copy of the letter because a duplicate was sent to the Bureau of Internal Revenue through then Deputy Commissioner and OIC Lilian B. Hefti. Three other copies were sent to Gatchalian; Marvin Faustino, Equitable PCIBank First Vice President; and Atty. Fernando T. Chua of Suite 807-809, 8th Floor, Tower I, Ayala Triangle, Ayala Avenue, Makati City. BIR was furnished a copy after it slapped a constructive distraint – a freeze order – on Estrada's assets on January 30, 2001 which warned against "releasing or disposing of the fund, instruments or other assets comprising the Investment Portfolio." The tax bureau's directive was meant to ensure that the government can collect taxes on any undeclared asset incuding those under the name of Estrada's wife, former Senator Loi Estrada. In its 41-page motion for reconsideration, Wellex said the Sandiganbayan erred in forfeiting its loan collateral in favor of the government. The collateral includes 450 million shares of Waterfront Philippines Inc. and 300 million shares of Wellex Industries. Wellex argued that the Velarde account never acquired ownership of the said collateral since they are "mere securities for the loan obligation." - GMANews.TV