Citing the documents, copies of which were furnished The STAR, the DOJ said it was during Estrada’s 31-month presidency that the contract awarded to Industrias Metalurgicas Pescarmona Sociedad Anonima (Impsa) became a "done deal."
The DOJ produced the documents ahead of Estrada’s scheduled appearance at a Senate inquiry on the Impsa contract tomorrow.
Sen. Joker Arroyo said Estrada — who has been known to make clumsy statements in the past — may be coached by his Senate allies during his rare appearance to link the administration to the alleged bribery.
"It will all be a circus. They will teach him on what to say just to embarrass the Macapagal-Arroyo administration," Arroyo said. Pro-administration senators said Estrada’s statements would be self-serving since he could also be a principal in the Impsa contract since it was signed during his presidency.
Estrada had maintained he did not approve the contract, which, according to him, was concluded during the administration of his predecessor Fidel Ramos.
He also claimed he did not sign anything with regard to the contract during his shortened presidency.
The build-rehabilitate-operate-transfer contract, concluded between state-run National Power Corp. (Napocor) and Impsa, called for the Argentine firm to rehabilitate a hydroelectric plant in Laguna.
It also called for the creation of a CBK Power Corp. which would be tasked to run the plant.
Five months after he assumed office, on Nov. 6, 1998, Estrada signed the 73-page Impsa contract as a witness. It was concluded between then Napocor president Federico Puno and Impsa representative Francisco Valenti.
The deal’s final approval, however, depended on the finalization of a government undertaking to address Napocor’s obligations under the agreement, the DOJ said.
"More specifically, it would define government’s obligations to assume Impsa’s investments if the agreement is prematurely terminated. The undertaking would likewise cover Impsa’s investments in the event of (Napocor’s) bankruptcy, privatization or dissolution," the DOJ said in a statement.
To address that, Estrada issued a two-page memo on June 17, 1999, authorizing then finance secretary Edgardo Espiritu and, in his absence, three finance undersecretaries to "sign, execute, and deliver" on behalf of the government "any deed or document of whatsoever kind and nature which would be necessary or proper to implement such government undertaking...."
On Feb. 10, 2000, Estrada extended the same authorization to then Napocor president Puno and, in his absence, to Napocor senior vice president and chief operating officer Asisclo Gonzaga to "make, execute, endorse and deliver any deed supplement, or other documents of whatsoever kind and nature such as the Accession Undertaking which may be necessary for the purpose of executing and implementing" the Impsa contract.
Puno’s notice about his authorization was transmitted to him by then Executive Secretary Ronaldo Zamora six days later.
On Sept. 25, 2000, Puno requested the issuance of a government acknowledgment and consent agreement — a guarantee that the government would assume Napocor’s obligations under its contract with Impsa in case debt-saddled Napocor went bankrupt or was privatized or dissolved, the same documents showed.
Almost a month later, on Oct. 20, Estrada authorized then Finance Secretary Jose Pardo and, in his absence, three finance undersecretaries to "conclude, sign and deliver, for and on behalf of the Republic of the Philippines, the acknowledgment and consent of the Republic to the security and other arrangements agreed to by CBH Power Company Limited to secure the payment of its obligations to lenders providing financing for the project."
The government acknowledgment and consent agreement was issued by the Department of Finance on Dec. 18, 2000.
Estrada has been suffering from gout and eye problems and had asked the Sandiganbayan to travel to the Mother Ignacia Healing Center in Caloocan City to bathe in its spring water. He is detained Veterans Memorial Medical Center in Quezon City.
But Estrada said he will defer his "spiritual healing" to instead testify in a Senate committee inquiry on the Impsa contract upon the invitation of pro-Estrada lawmaker Sen. John Osmeña, who chairs the committee on government corporations and public enterprises.
Estrada will testify on claims made by Estrada ally Sen. Panfilo Lacson that Justice Secretary Hernando Perez received $2 million in bribe money to endorse the Impsa contract.
Lacson said the money was part of a $14 million payoff dangled before Estrada to sign the contract. He claimed Estrada turned down the offer and did not approve the contract.
Estrada was toppled in a military-backed massive protest last year on charges he plundered up to P4 billion during his 31 months in office.
Prosecutors allege Estrada took bribes from illegal gambling rackets, embezzled state funds and profits from insider trading, among others, and used the proceeds to buy mansions for himself and for his string of mistresses.
He is accused of amassing more than P4 billion ($75 million) during his abbreviated rule and stashing the proceeds in a secret bank account with Equitable PCI Bank under the alias Jose Velarde. They say the account contained P3.2 billion at one point.
Estrada denies the charges and claims that the trial was rigged. He maintains he was illegally ousted from the presidency and is, therefore, immune from suit. — With Sammy Santos