Dichaves indicted for plunder before Sandiganbayan

The Ombudsman indicted a businessman-friend of former President Joseph Estrada for plunder yesterday, making them co-defendants in a landmark trial.

Prosecutors asked the Sandiganbayan to include Jaime Dichaves among defendants, describing the businessman as the bagman of the ousted leader.

"He (Dichaves) abetted, conspired with and prevailed upon Estrada to exert pressure on two state pension funds to buy shares of stock in listed firm Belle Corp. while Estrada was president," Ombudsman Aniano Desierto said.

He said prosecutors have obtained evidence that Dichaves personally delivered to Estrada a check for the latter’s P189.7-million commission from the transaction.

The profit was allegedly sourced from the investment of the two state pension funds — the Social Security System and the Government Service Insurance System — in Belle Corp., the franchise holder and operator of jai alai.

The check was then delivered to a bank account under the name Jose Velarde, which prosecutors said was an alias Estrada used to conceal ill-gotten wealth.

During Estrada’s trial at the Senate, Dichaves came forward to claim the ownership of the Velarde account but the chamber rejected his offer of evidence.

Meanwhile, plunder charges against former SSS chairman Carlos Arellano, former GSIS president Federico Pascual and Belle director Willie Ocier were "dropped" since the three will be used as witnesses against Estrada.

They were granted immunity from prosecution by the Ombudsman because their testimonies are believed to be vital in proving that illegal transactions took place.

"They were dragged into the situation by reason of their positions and not for their pecuniary gain, advantage or benefit from the transaction," the Ombudsman said. "There is no showing that Arellano and Pascual knew all along that Estrada stood to gain out of the Belle transaction."

Also cleared were members of the GSIS board, namely former Presidential Management Staff chief Leonora de Jesus, Department of Justice chief state counsel Elmer Bautista, former Environment Secretary Fulgencio Factoran, retired Justice Hermogenes Concepcion, Aida Nocete, Leovigildo Arellano, Reynaldo Palmiery and Floriño Ibañez.

SSS board members exonerated were former Employers Confederation of the Philippines head Miguel Varela, Dody Agcaoili, Amado Almazan, Aurora Arnaez, Rafael Estrada, Raoul Inocentes, Marianita Mendoza and Cerilio Seno.

"There is no evidence that GSIS and SSS officials have any participation in the purchase of Belle shares by the pension funds. As admitted by Pascual and Arellano, the instruction to buy additional shares given to them by Estrada was known only to them and was never relayed to any other individual, official or employee of the GSIS," the Ombudsman said.

Five private individuals — Abby Dichaves, Enriqueta Disuanco, Fernando Gaite Jr., Amalio Mallari and Aurora Mathay — were also cleared.

However, several suspected Estrada cronies and one of the former president’s sons were subjected to further investigation. They are San Juan Mayor Jose Victor "JV" Ejercito, Charlie Ang, Fernando Chua, Lucio Co, Antonio Evangelista, William Gatchalian, George Go, Mark Jimenez, Ramon Lee, Michael Pangilinan, Susie Ting, and Yang Cheng Mu. Included was the name Kelvin Garcia, which prosecutors believe was Estrada himself.

The names of the businessmen appeared in the second envelope of Equitable PCIBank in connection with the P3.3-billion account allegedly owned by Estrada under the fictitious name Jose Velarde.

The businessman denied any participation but probers said their explanations were unsatisfactory.

"Further fact-finding investigation is deemed necessary," they said.

In a related development, the prosecution panel asked the Sandiganbayan to set for Sept. 25 the arraignment of Estrada on the illegal use of an alias.

In a three-page manifestation, special prosecutor Robert Kallos told the anti-graft court’s third division that the result of the investigation conducted by the Office of the Ombudsman found "probable cause" to charge the ousted leader with violations of the anti-alias law.

On July 25, the Sandiganbayan remanded the case back to the Ombudsman for re-investigation.

Kallos said the re-investigation of the criminal case was concluded on Sept. 13.