‘MJ’ says Estrada played key role in BW stock scam

Businessman Mark Jimenez has told state prosecutors that deposed President Joseph Estrada played a leading role in the country’s worst stock market scandal, Justice Secretary Hernando Perez said yesterday.

Jimenez also confirmed that he deposited checks in the account of "Jose Velarde," one of the aliases Estrada allegedly used to launder billions of pesos in protection money and kickbacks, Perez added.

But the justice chief said that the Jose Velarde accounts were only the tip of the iceberg.

"Talagang matindi," Perez said. "Magmumukhang tanga ang impeachment trial witnesses sa tindi ng testimony nito (Really devastating. The impeachment trial witnesses will look foolish compared to this testimony)."

Already, the lawyers pro-secuting criminal charges against the disgraced president have discovered that Estrada began making deposits under aliases just two months after taking office.

Prosecutors claim that Estrada has 15 accounts, under at least six aliases, in 15 banks involving hundreds of millions of dollars in unexplained wealth.

Perez said Jimenez would corroborate many of the prosecutors’ findings.

"Virtually all of the transactions where Estrada profited are known to Mark Jimenez," Perez said in several radio interviews.

For instance, Perez said Jimenez corroborated previous testimony that Estrada was a shareholder in controversial gaming firm Best World Resources Corp.

Jimenez also confirmed that Estrada was "involved in the manipulation of the stock market" at the time, Perez added.

He even furnished prosecutors with "documents and checks" regarding Estrada’s partial ownership of shares in the gaming firm.

Jimenez, Estrada’s presidential adviser on Latin American affairs, has been giving depositions to DOJ lawyers since Friday that reveal the extent of Estrada’s alleged illegal involvement in several business deals, Perez added.

"(Former) President Estrada will collapse over what we have," Perez told The Associated Press, adding that Jimenez’s testimony would spark new criminal charges and support those that have already been lodged with the Ombudsman.

The Ombudsman is currently investigating Estrada for alleged plunder, misuse of funds, anti-graft law violations, perjury, bribery and possession of unexplained wealth.

Perez said Jimenez’s testimony also implicated some members of Estrada’s families but the DOJ chief did not identify the Estrada kin or details of their alleged wrongdoing.

"The need now is for him to testify," Perez said. "After this, probably we can send him to the US, or we can have a deposition so that we can perpetuate his testimony and later have him extradited."

US marshals here to arrest MJ

Perez admitted that Jimenez agreed to testify after the DOJ threatened to file plunder charges against him and immediately extradite him to the US where he is wanted by the federal government.

In fact, Perez said, US marshals are already in the country to arrest Jimenez but the government has asked the US to hold off the extradition until the case against Estrada is completed.

But Perez said the government would not terminally block the extradition.

"The DOJ will not stand in the way of extradition. It is just a matter of timing. That’s why we should let him testify first or take his deposition," Perez said.

Perez made the assurance while the American government invoked the country’s obligation under the extradition treaty between the Philippines and the US.

US Embassy spokesman Thomas Skipper said the US "expects good cooperation" on enforcing the treaty and emphasized that the US request for Jimenez’s extradition remains active.

"It remains active. We expect the government agency handling the case to act on it expeditiously. We want Mr. Jimenez to be extradited to the US and face the charges against him," Skipper told The STAR.

Skipper said the US Embassy is in regular contact with the DOJ so the case would move forward.

"Our request remains no matter how long it will take," Skipper said.

Meanwhile, acting Foreign Secretary Lauro Baja Jr. said the Philippines would abide by its standing commitment to the extradition treaty it signed with the US and other countries.

But Baja appealed to the US to understand the judicial processes that would have to take place in the country before Jimenez can be extradited.

"We hope the United States would understand if that happens, (but) we will honor the treaty," Baja said.

At the same time, the Foreign Office endorsed the request of the US Embassy to issue a hold-departure order against Jimenez to prevent him from fleeing the country.

The US asked for the HDO last Oct. 23 but since the DFA merely forwarded it to the DOJ for action, the DOJ only worked for the inclusion of Jimenez in the watch list which expires Jan. 29.

Baja said the DFA had to ask for an HDO because there is no law that could prevent Jimenez from securing a valid passport.

Jimenez had been doing business in the US but fled the country after he was indicted in Florida in 1999 for alleged tax evasion, mail fraud and illegal campaign contributions to the US Democratic Party.

MJ under government protection

As the government prepared its case against Estrada, Jimenez will be kept under a witness protection program.

"We might finish the affidavit tomorrow or Thursday. We have enough evidence to prove the guilt of Estrada and his family. But we divided the statement into segments because some are not related to this or that," Perez said.

The DOJ will also have to sift through the documents which may be submitted to Ombudsman Aniano Desierto, who is himself preparing evidence against Estrada, he added.

Meanwhile, Perez dismissed reports that Estrada lawyer Edward Serapio is being eyed as a witness against Estrada.

Perez said that possibility is doubtful since Serapio’s testimony would violate lawyer-client confidentiality rules.

But Perez maintained that two other Estrada cronies may turn witness against Estrada.

Earlier reports have tagged former BW majority owner Dante Tan and businessman Jaime Dichaves as the potential witnesses.

But militant groups have raised howls of protest over the government’s plan of using Estrada cronies as witnesses because doing so might make them immune to prosecution.

"Justice must be attained by the people without compromise," said Robert de Castro, secretary general of the ecumenical Church-based group, Promotion of Church People’s Response (PCPR).

The women’s group Gabriela echoed the same concern, saying Estrada cronies are "out only to save their own skins."

"Let us not forget that they helped Mr. Estrada pocket hundreds of millions of the people’s money," said Gabriela secretary general Liza Maza.

Militant labor group Kilusang Mayo Uno also urged the government to go after Estrada cronies like Charlie "Atong" Ang, William Gatchalian and Dante Tan, among others. — With reports from Sandy Araneta, Romel Bagares, Aurea Calica, Jose Rodel Clapano, Jess Diaz