Sen. Francisco Pangilinan, committee chairman, established clearly that Cayetano had not violated a law or any rule or regulation of the Senate or engaged in improper conduct that may reflect upon the chamber.
In a statement, Cayetano said he felt vindicated by the decision. He said that the charge was nothing but a political hatchet job repeated over and over again for the past two years with the intention of "smearing my integrity, reputation and honor."
He said the committee should have given more emphasis on the private nature of his transaction with BW majority owner Dante Tan, which he carried out as an ordinary investor and not as a senator.
The case stemmed from an unsworn complaint by Crispin Remulla, spokesman for deposed President Joseph Estrada, accusing the senator, a self-confessed player in the stock market, of wrongdoing when he traded in the BW shares being actively traded on the stock market floor.
Despite the protests from Cayetano’s side that the complaint was not made under oath and not supported by affidavits and should be treated as mere scrap of paper, the committee took pains to look into the matter.
The Senate committee saw the complaint of Remulla as directly attributable to Tan and that the information alleged in his letter could only be confirmed by Tan himself.
His "allegation is based on what he heard, had been told or related to him, or what appears to be. These are hearsays and thus, have no probative value," Pangilinan said.
Tan was called to testify before the committee, but was nowhere to be found. Remulla was given the chance to prove his allegations through his witness, Raul De Castro, vice president of the A.T. de Castro Securities, the official stockbroker of Tan.
De Castro summarized the transaction of the senator into the transfer of shares from the account of Tan to the account of Cayetano and his sale of the shares, for which the seller was charged and paid taxes.
However, during the course of De Castro’s testimony last Oct. 4, he exonerated Cayetano, stating that there was nothing unusual in the transaction between Tan and the senator. He also told the committee that Tan himself had guaranteed the investment was above board.
In subsequent questionings by Sen. Noli de Castro, Sen. Joker Arroyo and Pangilinan whether the transaction was regular, normal or unusual, witness De Castro repeatedly said that there was nothing unusual regarding the counter stock transactions.
Moreover, the committee found out that Remulla had not established by substantial evidence that Cayetano had not paid for the shares, which he acquired from Tan.
The committee also found out that the senator did not transgress any of the ethical standards morally required of public officers. The records showed that he did not participate in the interrogation of witnesses in the Dec. 1 hearing. He made disclosures on the reason why he could not participate.