the impeachment trial

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THE IMPEACHMENT TRIAL

DAY 1

7 December 2000

The impeachment trial of Joseph Ejercito Estrada began. Read the opening statements of theprosecution and defense panels. For the prosecution, opening statements were made by Reps. Feliciano

Belmonte Jr., Sergio Apostol, Joker Arroyo, Raul Gonzales and Wigberto Tanada. For the defense,

opening statements were made by lawyers Andres Narvasa and Estelito Mendoza. Narvasa's statement

is marked by showing a parallelism between Erap and Julius Caesar. Mendoza responded to each of the

four Articles.

The prosecution began presenting its witnesses namely, former Police Director General Roberto

Lastimoso and alleged jueteng auditor Yolanda Ricaforte.

The prosecution established that President Estrada met with Lastimoso and Ilocos Sur Governor Luis

Chavit Singson in Malacanang. In that meeting, the President told Lastimoso to coordinate with Singson

regarding jueteng operations. This essentially was the direct testimony of Lastimoso

The defense was able to begin cross examination of Lastimoso. On cross examination, defense lawyer

Seigfred Fortun showed a photo copy of a memorandum issued by Lastimoso when he was still the top

gun of the Philippine National Police, directing all police officials to stamp out jueteng in Luzon.

DAY 2

8 December 2000

On December 8, the second day of trial, former Police Director General Roberto Lastimoso again took

the witness stand on re-direct examination by Rep. Libarios. Libarios established that the memorandum

presented on cross examination was issued by Lastimoso prior to his Malacanang meeting with the

President and Governor Singson.

On the same day, Presidential Assistant Anton Prieto was called to the witness stand. The prosecutionsought to establish that Prieto was involved in jueteng activities in behalf of the President. Here, there

was a long discussion on whether Prieto should be considered an adverse witness or a hostile witness.

Another witness for the prosecution, Emma Lim was called to testify. Lim is an employee of Governor

Singson. She testified that she collected jueteng money from Presidential son and San Juan Mayor

Jinggoy Estrada, one Bong Pineda, and alleged big time jueteng operator in Pampanga, and Anton

Prieto.

Meanwhile, before the court adjourned the Presiding Officer Chief Justice Hilario Davide Jr., scheduled a

lunch meeting with prosecutors and defense lawyers in order to discuss ways to avoid any unwarranted

delays in the proceedings.

DAY 3

11 December 2000

Prosecution witness Emma Lim continued with her testimony on direct examination. She testified that

she personally delivered P5-million to Malacanang. She told the court that she handed over the cash to

a certain "Malou," said to be the President's Secretary.

Also presented in the impeachment court were duplicate copies of deposit slips which indicated certain

check deposits. According to Lim, these deposits were derived from checks issued by Anton Prieto. Lim

said these were part of the jueteng remittances for the President.

On cross examination, Lim admitted that all her activities relating to jueteng collections were upon the

orders of her employer, Governor Luis Chavit Singson.

Back to the witness stand was retired Police Deputy Director General Roberto Lastimoso, on re-cross

examination. The defense presented memorandum and letters bearing the signatures of Lastimoso. In



these documents, Lastimoso wrote about the PNP's campaign against illegal gambling, particularly

jueteng in Luzon.

The third witness of the day was Francisco Yap, Jr., President of the Philippine Clearing House Corp. The

prosecution presented six checks amounting to P200-million. Yap testified that all of Equitable Bank

checks pass through the clearing operations of the Philippine Clearing House. He said their office has

microfilm copies of such checks.

DAY 4

12 December 2000

Francisco Yap, Jr., President of Philippine Clearing House Corp., continued with his testimony on direct,

and later, cross examination. Yap testified that it stuck him as unusual for a bank to encash millions of

pesos worth of checks ( a total of six checks) in a single day.

The next witness for the prosecution was broadcaster Miriam "Twink" Macaraig-Esteban of Channel

News Asia. Twink re-lived the November 10 press conference of President Estrada upon the invitation of

the Foreign Correspondents Association of the Philippines (FOCAP). The prosecution presented writtenexcerpts of the press conference, as transcribed by Twink Macaraig herself. The excerpts related to

President Estrada's answers to questions about the alleged bribe offer by Governor Chavit Singson, as

well as the President's gambling activities, among others.

After Macaraig's testimony, Prosecutor Oscar Moreno reported to the impeachment court that

Equitable-PCI Bank did not obey a subpoena earlier issued by the court to inspect certain bank records,

invoking the Republic Act 1405, known as the Bank Secrecy Law.

A discussion later ensued between the prosecution and defense, when the latter raised the fact that

there was no valid notice given to them regarding the subpoena.

Senate President Nene Pimentel, asked the Presiding Officer to direct the responsible officers of

Equitable-PCI Bank to show cause why they should not be cited for contempt for disobeying a lawful

order of the court.

DAY 5

13 December 2000

The prosecution called another witness, Menchu Itchon. She is a secretary of Governor Luis Chavit

Singson. She linked alleged jueteng auditor Yolanda Ricaforte to President Estrada. She testified that she

accompanied Ricaforte to Malacanang where the latter delivered some documents. Itchon also said that

President Estrada is behind the setting up of a casino called Fontainbleau. Jueteng money was used to

build the casino, Itchon added.

The prosecution later presented its principal witness, Governor Luis Chavit Singson. Singson, considered

an erstwhile member of President's inner circle of friends, testified that he personally delivered jueteng

collections for President Estrada. Singson's testimony heavily dealt with the controversial ledger which

scribbled in detail jueteng pay-off and collections. Chavit Singson reiterated his testimony before the

Senate Blue Ribbon Committee. But this time, it was more detailed.

Before Chavit Singson began his testimony, the defense lawyers vehemently objected to the

prosecution's move to allow a private prosecutor to conduct the direct examination of Singson. After

spirited debates, the Presiding Officer allowed the private prosecutor to participate, without prejudice

to undertaking further discussions on the matter at a more appropriate time.

DAY 6

14 December 2000

Today's hearing began with the scheduled arguments by the prosecution and defense panels on the

issue as to whether or not the court should allow inspection of certain bank records. The prosecution



claimed allowing them to inspect bank documents would help them in proving their case against the

President

Meanwhile the defense strongly opposed the inspection of such records as this is not part of the

allegations in the Articles of Impeachment. The Presiding Officer ordered both panels to submit their

written memoranda within the next eighteen hours.

Later the prosecution presented witness Menchu Itchon, a secretary of Governor Luis Chavit Singson.

She presented cell-phone bills of Fontainbleau, the corporation allegedly fronting for President Estrada.

These bills showed various calls made from the cellular phone used by alleged jueteng auditor Yolanda

Ricaforte. The calls, according to the witness, were made on the Presidential Residence, and on the

phones of Presidential son Jinggoy Estrada, the President's personal lawyer Edward Serapio, and alleged

bigtime gambling lord Bong Pineda.

On cross examination, the defense was able to show that Itchon has closed filial ties with Governor

Singson. Two of Itchon's siblings were married to two siblings of Governor Singson.

Thereafter, Governor Chavit Singson was brought back to the witness stand on direct examination. Hecontinued with his detailed explanation of the controversial ledger which showed an accounting of

jueteng collections and pay off. Singson also testified that he was dissuaded by the President's children

and top lieutenants from coming out with his expose.

DAY 7

15 December 2000

Today's hearing opened with Senator-judge Miriam Santiago exploding. In a speech, she protested the

holding of a picket in front of her residence in Quezon City. She claims this constitutes indirect

contempt, as the picket was staged against a judge.

Prosecution star witness Governor Luis Chavit Singson continued with his direct testimony. He made

additional revelations. Singson said he issued a check amounting to P2-million upon the instructions of

President Estrada. This check was given to a former beauty queen.

Singson said Estrada lent his friend William Gatchalian P62-million. But Estrada allegedly asked P70-

million as payment, thus earning P8-million. The money lent by Estrada came from jueteng collections,

Singson said. The witness also testified that the President's son Jinggoy Estrada participated in collecting

jueteng money without the knowledge of the President. Singson testified he delivered jueteng

collections for President Estrada in the presence of Guia Gomez, one of Estrada's mistresses, and their

son JV.

Presiding Justice Hilario Davide, Jr., gave an order which allowed the prosecution to inspect certain bank

documents. These documents were earlier sealed and placed in the custody of the Senate following

vehement objections by the defense against any examination of documents which are immaterial to the

allegations.

Senator John Osmena raised the question on the possibility of subjecting an order or directive of the

Presiding Officer to a vote by the entire membership of the impeachment court, as provided in the Rules

on Impeachment.

Senate President Nene Pimentel scheduled a lunch-caucus on Monday to tackle the matter.

DAY 8

18 December 2000

Another Senator "exploded" in today's impeachment trial. After leading the Senate gallery in prayer,

Senator Teresita Aquino-Oreta blasted House Prosecutor Clavel Asas Martinez for issuing statements to

media claiming that some Senators met with defense lawyers in Malacanang. Oreta's name was



mentioned as one of the senators who reportedly attended the said meeting. Oreta asked the

impeachment court to cite Representative Martinez for contempt.

Senator Juan Ponce Enrile, whose name was also mentioned as among those who met with defense

lawyers in Malacanang, joined Oreta in her move to cite Martinez for contempt.

The Presiding Officer deferred the opening of the controversial Equitable bank documents which are

presently sealed under Senate custody. The Presiding Officer gave the senators time to review the

records in the trial so they could take appropriate responses to the earlier directive to allow the

inspection of the said bank documents.

The Prosecution called on the witness stand broadcaster Jay Sonza. The witness earlier interviewed

President Joseph Estrada on November 9 and 13 in connection with the jueteng scandal. The

prosecution presented extracts of the radio interview with President Estrada.

Later, Ms. Annie Ngo, a Vice President of Equitable Bank was called to the witness stand to testify on

matters relating to the opening of certain accounts by alleged jueteng auditor Yolanda Ricaforte in the

said bank.

DAY 9

19 December 2000

In today's hearing Annie Ngo, the 1st vice President of Equitable PCI Bank was cross-examined. It was

pointed out that Ngo never met alleged jueteng auditor Yolanda Ricaforte and that she is not personally

familiar with the signature of Ricaforte. Witness admitted that she has no personal knowledge of the

opening of the accounts of Ricaforte in Equitable Bank.

The prosecution later presented another witness, Edelquinn Nandes, manager of Equitable-PCI Bank

Timog branch. Witness testified that alleged jueteng auditor Ricaforte opened an account in TimogBranch on September 1, 1999. Ricaforte signed the savings signature card in the presence of the

witness.

On cross-examination, witness admitted that the deposit of Ricaforte in the Equitable Timog Branch was

initially opened by a check issued by Governor Singson.

Principal witness Governor Luis Chavit Singson went back to the witness stand to testify on Article II

which charges President Estrada of committing graft and corruption. Singson testified that when he was

congressman, he authored a law that provides that 15% of the excise taxes on cigarettes will be given to

Virginia tobacco producing provinces, including his home province of Ilocos Sur.

After President Estrada was elected, P200-million was released by the Budget Department for this

purpose. But Singson claimed that Estrada asked P130-million for himself.

Singson testified that the money was released to Ilocos Sur, but was channeled to a branch of the Land

Bank of the Philippines in Shaw Boulevard, Mandaluyong. There, three persons allegedly withdrew the

money.

Singson testified that he accompanied Charlie Atong Ang, a close friend of President Estrada to the

latter's home in Greenhills where the P130-million was handed over to President Estrada, his wife Loi

Ejercito and their son Mayor Jinggoy Estrada. Singson said that Atong Ang gave the money to the

President, his wife and son, but only after pocketing P25-milion for himself.

DAY 10

20 December 2000

It was a suspense-packed hearing today when the controversial Equitable-PCI Bank documents relating

to the account of one Jose Velarde were inspected in open court. The opening of the sealed envelope



containing bank records came following the withdrawal by the defense of its intention to file a Motion

for Reconsideration to the order of the Presiding Officer directing the opening of said sealed envelopes.

The sealed brown enveloped contained two specimen cards of Jose Velarde, the person who issued a

P142-million check to Jose Sel Yulo, a close friend of President Estrada. The money was used to buy the

so-called "Boracay" mansion.

Also contained inside the sealed envelope were twelve pages bank statements of the account of Jose

Velarde. The prosecution manifested that the signatures in the specimen cards were "radically different"

from the signature of the controversial P142-million check.

Later, the prosecution presented the former President of Clark Development Corporation Rufo Colayco.

He narrated the circumstances surrounding the construction of a casino called Fontainbleau which has

been alleged to have been funded through jueteng money.

The witness however admitted that he has no knowledge as to the truth regarding the allegations that

jueteng money was used to construct the casino in Clark.

DAY 11

21 December 2000

The prosecution today presented five branch managers of Equitable-PCI Bank. These managers testified

that alleged jueteng auditor Yolanda Ricaforte opened a total of 31 bank accounts in six branches of

Equitable-PCI Bank.

The money deposited in these banks have been suspected to be sourced from jueteng collections for

President Joseph Estrada. The total money involved in these bank transactions amounted to no less than

P200-million.

The managers who testified were Rosario Bautista of the Diliman-Matalino branch, Shakira Yu of the

Pedro-Gil-Robinsons branch, Vergel Pabilon of TM Kalaw branch, Edgardo Alcaraz of Timog-Scout Tobias

branch and Emma Gonzales of Isadora Hills branch.

The prosecution sought to present how jueteng money was laundered in these banks through

Ricaforte's accounts with Equitable PCI Bank.

It was noted that when Ricaforte withdrew money from the banks, she asked that cashier's checks be

issued "payable to cash."

DAY 12

22 December 2000

The prosecution today presented a "surpise" witness, who unleashed a "bombsell" before an

impeachment court that was already looking forward to a weeklong Christmas break.

The witness was Clarissa Ocampo, Senior Vice President of Equitable-PCI Bank. Ocampo testified that

the mysterious bank client "Jose Velarde" and President Joseph Estrada are one and the same person.

She said that she was one foot away from Mr. Estrada when the latter signed the name "Jose Velarde"

on bank documents which were needed to open accounts with the bank. She said this happened in

Malacanang.

Ocampo's testimony before the impeachment court was met with stern objections by the defense

panel. The defense claimed that it was most unfair for the prosecution to stage "surprise" attacks during

the hearing.



Earlier, the Presiding Officer had left it to the Senator-judges to decide whether or not to allow the

witness to testify. Once again, the Senator-judges rose to the ocassion and unanimously decided to

allow Ocampo to testify.

The court will meet again on January 2, 2001, where the defense is scheduled to cross-examine Ocampo.

DAY 13

2 January 2001

Trial resumed today with the Presiding Officer reiterating his ruling that at this stage of the proceedings,

the prosecution shoulders the burden of presenting evidence that the P500-million account of Jose

Velarde at the Equitable-PCI Bank was ill-gotten.

Later, prosecution witness Clarissa Ocampo came back to the witness stand to continue her direct

examination. Ocampo, Senior Vice President of Equitable-PCI Bank had testified that President Joseph

Estrada signed the name "Jose Velarde" in a trust account with the bank.

The defense did not cross examine Ocampo. But she was subjected to intense questioning by Senator- judges. In the course of the interrogation, she revealed that there was an attempt to assign the trust

account of Jose Velarde to a certain Jaime Dichaves, said to be a close friend of President Estrada.

Ocampo revealed that some documents were signed in the office of defense counsel Estelito Mendoza.

Mendoza, on the other hand, manifested before the court that he was not present, and had no

knowledge about the signing of the bank papers. Ocampo said the assignment did not materialize

because the principal did not give any signed authority to go ahead with the assignment.

Later, lawyer Manuel Curato, First Vice President of Equitable-PCI Bank for Legal Affairs took the witness

stand and corroborated the testimony of Clarissa Ocampo. He said he too, was present when President

Estrada signed the name "Jose Velarde" in Malacanang.

DAY 14

3 January 2001

Key prosecution witness Ilocos Sur Governor Luis Chavit Singson came under intense cross examination

by defense counsel Estelito Mendoza.

Lasting more than five hours, Singson was grilled on his expose that President Joseph Ejercito Estrada

was receiving millions of pesos from collections derived from jueteng, an illegal numbers game.

Mendoza's questions were focused on the supposed ledger which showed a detailed accounting to

whom jueteng money was given.

Singson is also a main witness for the prosecution on Article II of the Articles of Impeachment which

charges the President of committing graft and corruption. He had testified that President Estrada

received kickbacks from the proceeds of excise tobacco taxes for Ilocos. Under cross examination, the

defense pointed out that Singson signed official documents leading to the disbursement of the tobacco

funds released by Malaca¤ang.

After Singson acknowledged affixing his signatures on disbursement papers, the defense plucked a copy

of an oath of office whereby elected officials, like the Governor Singson had sworn to uphold the laws.

Later, the prosecution presented another witness, 27 year old lawyer Jasmin Banal, a former law

associate of the De Borja Law Firm. Banal said the President's personal lawyer Edward Serapio was oneof the founders of the firm. Banal began testified that she was made to sign the incorporation papers of

a company which the prosecution claims to be a dummy company for the President. Prosecutor Roan

Libarios conducted the direct examination.

DAY 15



4 January 2001

The prosecution resumed the direct examination of lawyer Jasmine Banal. Banal testified that she signed

as one of the incorporators of two companies, namely Pio Holding Corp., and Alexei Holding Corp. She

also signed blank Deeds of Assignment that would transfer her rights in these two firms.

On cross examination, defense counsel Estelito Mendoza elicited from the witness that law associates

signing as incorporators in behalf of clients is a normal practice.

What stole the show in this episode was when the impeachment court barred three spectators from

attending the impeachment proceedings for displaying a kind of behavior which is not in accordance

with the conduct and decorum allowed by the Senate rules.

Upon the insistence of Senator Miriam Santiago, the court, after a caucus, decided to bar the three

spectators who were identified as private complainants of the impeachment case. They were Dante

Jimenez, Bettina Aboitiz and Rosanna Tuazon-Fores.

The second witness called by the prosecution was lawyer Emily Padua, management head of

Entertainment and Bingo Department of the Philippine Gaming Corporation (Pagcor).

The witness was made to testify on the agreement entered into between Pagcor and Prominent

Management Corporation. Prominent was hired as consultant in bingo game matters. Pagcor had been

eyeing the operations of a game called Bingo II Ball which was designed to directly compete with illegal

jueteng.

In the course of the testimony of Padua, Senator-judge John Osmeña pointed out that a microphone

connected to one of the television cameras was placed near his seat. He raised the possibility that the

television stations might be able to eavesdrop private conversations of senators. The cameraman of the

t.v. station concerned was placed on the witness stand to answer queries of the senator-judges. But

Senate President Aquilino Pimentel said that it would be better to call to a meeting the executives of thet.v. station the following day.

DAY 16

5 January 2001

The prosecution today presented the following witnesses:

Elizabeth Balagot, manager of Land bank of the Philippines, Vigan branch;

Lorena Flores, manager of Land Bank of the Philippines, Malacanang branch;

Ma. Caridad Rodenas, manager of the Land bank of the Philippines, Shaw Boulevard branch;

Gwen Samontina, Assistant Vice President and Head of the Records and the Information Management

Center at the Social Security System;

Eleanor Madrid, head of the licensing section of the Land Transportation Office.

The branch managers of the Land bank were presented in order to establish the trail of bank documents

that would show how the P130-million proceeds of the excise tobacco taxes for Ilocos Sur ended upbeing withdrawn by private persons from the Shaw Boulevard branch of Land Bank.

Gwen Samontina testified that a certain Delia Rajas, said to be one of three persons who withdrew part

of the P130-million, is an employee of Power Management and Consultancy, Inc, a corporation owned

and managed by Charlie "Atong" Ang.



Eleanor Madrid of the LTO testified that they have records of Jose Victor Tan Uy, who is also known as

Eleuterio Tan. Tan is also reported to be one of three persons who withdrew part of the P130-million

from the bank.

In the course of the days proceedings, a Metrobank check amounting to eight million pesos was floated.

The check drawn by Iloco Sur Governor Luis Chavit Singson was alleged to have been deposited in the

account of First Lady Loi Ejercito.

DAY 17

8 January 2001

In today's hearing, Delia Rajas showed up before the impeachment court. The name Delia Rajas has

been a controversial name since the investigations of the Senate Blue Ribbon Committee. The name

Delia Rajas was the one used by a person who withdrew part of the P130-million from Land Bank Shaw

Boulevard branch. This amount was allegedly diverted from Ilocos Sur.

However the Delia Rajas that appeared in court today is a cook of the mother of close Presidential friend

Charlie "Atong" Ang. Claiming to be the real Delia Rajas, she said she has absolutely nothing to do withthe withdrawal of millions of diverted funds from Land Bank.

The manager of the Land Bank Shaw branch, Ma. Caridad Rodenas, seemed to validate this as she said

the Delia Rajas that popped out in court today was not the one she met in August 1998, who withdrew

millions of pesos in cash from the bank.

But defense lawyer Sigfried Fortun is in hot water for trying to mislead the court, according to some

senators. Senators cried foul against Fortun's "dirty tricks." Some senators claim Fortun led them to

believe that the Delia Rajas, the one who withdrew the money was present in court.

When the land bank branch manager Rodenas was made to roam the gallery to find the Rajas, naturallyshe could not find her because the Delia Rajas present in court was the houshelp, whom Rodenas had

never met. How then could she have identified the Rajas who withdrew from Land Bank, senators asked.

Another witness presented today was lawyer Ferdinand Sales, from the Securities and Exchange

Commission. He testified on the articles of incorporation of Prominent Consultant Group Inc., the

corporation that was awarded by the Pagcor the Bingo II Ball project.

DAY 18

9 January 2001

The prosecution presented Ruben Almadro, former head of the compliance and surveillance group of

the Philippine Stock Exchange. Almadro headed the group that investigated the alleged stock

manipulation by BW Resources Corp. BW is controlled by Dante Tan, a close friend of the President.

In his testimony, Almadro said he personally relayed to the President the stock manipulation by BW

Resources. Instead, the President told them that his friend Dante Tan told him that the latter had

already "fixed" the chairman of the Securities and Exchange Commission Perfecto Yasay, so that the SEC

would clear BW of any wrongdoing.

Another witness presented was Victor Lim, Vice President of Citibank Corp. The witness was asked to

testify in connection with an eight million peso check drawn by Ilocos Sur Governor Luis Singson which

allegedly ended up in the account of First Lady Loi Ejercito at Citibank.

Lim testified that the bank had tried to ask the first lady for the source of the P8-million check that was

deposited in her account on October 4, 1999.

DAY 19

10 January 2001



When the impeachment hearing began, Senator-judge Renato Cayetano took the podium and delivered

a privilege speech. He denounced the black propaganda against him, accusing the President of being the

one behind the campaign to discredit him. He threw his own accusation against President Estrada saying

the President intervened in the Vizconde murder case and had sought Cayetano's help in acquitting the

accused in the case.

Lawyer Ruben Almadro, former head of the Compliance and Surveillance Group of the Philippine Stock

Exchange was called back to the witness stand for cross examination.

On cross examination, defense counsel pointed out that in making its report, the CSG investigators did

not call Dante Tan of BW Resources to explain his side.

Next to take the witness stand was Jose Luis Yulo, former President and Chief Executive Officer of the

Philippine Stock Exchange. He occupied the position from May 1997 to April 2000.

Yulo testified that at the height of the BW scandal, when he was head of PSE, he was called by President

Joseph Estrada who, in those occasions, told him that Dante Tan, who controlled BW Resources Corp.,

was a good friend. The President told him that Dante tan was merely a victim of the stock manipulationsat the stock market.

During the hearing the Senate President, after a caucus with the senator-judges, issued an "advisory to

all counsels, both of the prosecution and of the defense, as well as to all witnesses, either already

testifying or will be testifying in this impeachment trial to refrain from discussing the merits of the

impeachment case before any public forum in accordance with the mid-trial conference agreement that

was reached by counsels of both parties on January 8 of the year 2001 at the Office of the Senate

President."

DAY 20

11 January 2001

Today, Senator-judge Juan Ponce Enrile moved to strike from the records of the impeachment court the

privilege speech of Senator-judge Renato Cayetano. Cayetano opposed the motion. Senator-judge

Vicente Sotto III then moved to have the matter taken up in the Senate as a legislative body.

Prosecution witness former Philippine Stock Exchange (PSE) president and CEO Jose Luis Yulo then

answered clarificatory questions from the senator-judges.

The prosecution called as its next witness Yulo's executive assistant at the PSE, Mary Anne Corpuz.

However, her testimony was dispensed with after the prosecution and defense entered into a

stipulation.

Prosecution then called its next witness, journalist Emeterio Perez of the Daily Tribune. This witness

testified he was present when former SEC Chair Perfecto Yasay talked with the President on the phone.

Former Finance Secretary Edgardo Espiritu was called as the next witness. Espiritu testified that the

President had told him that he reaped huge profits with Best World (BW) Resources when its share price

was rising. Espiritu said that Dante Tan, who controlled BW Resources Corp., had said the President was

his partner.

Former Securities and Exchange Commission chair Perfecto Yasay Jr. then took the witness stand. In his

testimony, Yasay revealed that the President wanted him removed because he was a hindrance to the

Philippine Long Distance Telephone Co.-Metro Pacific deal. Yasay said the President introduced DanteTan to him in Malacanang as a very good friend.

DAY 21

12 January 2001



During the continuation of his direct testimony, witness Edgardo Espiritu, former Finance Secretary,

explained that it was through the behest of President Estrada that persuaded the Philippine National

Bank (PNB) to approve the P600-million loan of BW Resources despite the fact that it failed to comply

with the requirements set forth by law in the granting of loans.

When asked why he testified, Espiritu replied it was "for God and country."

Later, Perfecto Yasay, former Chair of the Securities and Exchange Commission was called back to the

witness stand to continue his direct testimony. Yasay testified that on September 13, 1999, he received

Memorandum No. 73 from President Estrada requiring the Prosecution and Enforcement Department

(PED) of the SEC to desist or halt the on-going investigation on the BW Resources in relation to the stock

market scandal.

Witness further explained that he was called at least five (5) times by President Estrada, the last of

which was on November 18, 1999 insisting that Mr. Dante Tan be cleared from any wrongdoing in the

price manipulation because he (Tan) was more of a victim than perpetrator of the BW Resources scam.

the impeachment trial

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