Sandigan allows sheriff to seize Jose Velarde's BDO account

The anti-graft court has allowed its sheriff to seize the so-called Jose Velarde account believed to be owned by ex-president Joseph E. Estrada at the Banco de Oro (BDO) Universal Bank. In a three-page amended writ of execution issued Tuesday by the Sandiganbayan Special Division, Sheriff Edgardo A. Urieta was ordered to seize the over P1-billion asset. The account is on top of the P189 million deposited in the same bank under another Velarde account. This particular account has a balance of only P2,770.69, according to BDO. The order stated that Mr. Urieta can forfeit the assets contained in the personal IMA trust account 101-78056-1, which was officially declared intact, to satisfy the forfeiture proceedings of the plunder case. The forfeiture includes the P189-million Velarde account, which was part of the P545.291 million deposited in the name and account of the Erap Muslim Youth Foundation, and the Boracay mansion in New Manila, Quezon City. The now-dilapidated sprawling property had a beach-like swimming pool with sand allegedly imported from world-famous Boracay island in Malay, Aklan. The Erap Muslim Youth Foundation account came from illegal gambling commissions, while the Jose Velarde account held kickbacks from the purchase of Belle Corp. shares by the Government Service Insurance System and Social Security System. The IMA trust account consists of P500 million worth of promissory note due Aug. 2, 2000 and chattel mortgage which was certified as a true copy by the Registry of Deeds; 750 million aggregate shares of stocks in Waterfront Philippines, Inc., estimated at P652.5 million based on P0.87 per share as of Jan. 21, 2008, and a common trust fund investment worth P95.76 million, which will mature on July 25, 2008. Waterfront is owned by Estrada associate, plastics king William T. Gatchalian. BDO, which acquired Equitable PCI Bank on Oct. 4, 2007, earlier confirmed that the over P1-billion Velarde account was still intact in a 13-page report. The report stated that BDO’s trust banking division is holding the accounts and assets of Jose Velarde which has been adjudged by the court to be owned by Mr. Estrada. The confirmation was written by Gerardo I. Banzon, head of Equitable PCI Bank’s legal advisory and research department. In an interview, Mr. Urieta said that he will start his duty of forfeiture today but he still has to wait for the answer of the Bureau of Internal Revenue (BIR) regarding the constructive distraint on the account. The BDO report stated that Internal Revenue Commissioner Lilian B. Hefti has ordered that the account be put on hold by virtue of a constructive distraint issued on January 2001. In the letter by the BIR addressed to the president of Equitable PCI Bank, it was stated that the "properties of Mr. Estrada a.k.a. Jose Velarde and Kelvin Garcia married to Luisa P. Estrada [are] under investigation for the taxable years 1998 and 1999." It noted that a constructive distraint will be placed on the properties of Mr. Estrada and his wife "to prevent them from dissipating, disposing or conveying their properties without the authority of the office" to protect the government’s interest. The letter also stated that Equitable PCI Bank has requested for the status of the account and the validity of the BIR order, but Ms. Hefti has not yet replied to the request. "Until now, Ms. Hefti has not yet replied. I also sent her a letter today, and if she does not reply in five days, I would have to report her to the court," Mr. Urieta said. In an earlier resolution, the court has ruled that Mr. Estrada’s personal and real assets should not to be confiscated in line with the case. - BusinessWorld