PROSECUTION

DEFENSE

Charged Estrada with plunder for “directing or compelling, for his personal gain and benefit,” the Government Service Insurance System (GSIS) and the Social Security System (SSS) to buy shares of stock of Belle Corporation and “by collecting and receiving, either directly or indirectly,” P189.7 million worth of commissions or percentages from the purchase of shares of stocks.

Witnesses:

• Carlos Arellano

Then SSS president. Estrada instructed him and Federico “Ding” Pascual to take a look at the Belle shares. Arellano asked the investment committee department to review the Belle shares. After a week, he met Estrada in Malacañang Palace, where he also saw Jaime Dichaves. After the SSS Investment Committee found out that Belle is a good investment, they made SSS ready to buy stocks on Oct. 21, 1999. Arellano said SSS bought 249 million shares with an equivalent value of P783 million, or an average price of P3.14 per share.

• Federico Pascual

Then GSIS president. In a meeting in Malacañang, Estrada asked him if GSIS could buy Belle shares. In a telephone conversation while he was in London, Estrada asked him the same question. Pascual called the Manila head office and asked Reynaldo Palmiery to study the matter. When Pascual returned to the Philippines, GSIS had already purchased a total of 351 million shares of Belle valued at P1.1 billion, equivalent to one board seat in the corporation.

• Rizaldy Capulong

Then assistant vice president for the Securities Trading and Management Department of the SSS. The purchase of Belle shares on Oct. 21, 1999, was in order and a perfectly valid transaction.

• Willie Ng Ocier

Then vice chair of Belle Corp. He talked in 1999 with Jaime Dichaves, who assured him that GSIS and SSS would purchase shares of Belle Corp. and that Estrada was asking for a P200-million commission. Ocier did not ask Estrada for a confirmation of the said representation made by Dichaves.

Presented four witnesses:

• Joseph Estrada

Former President. He didn’t pressure Arellano nor Pascual. He only asked Arellano if buying the Belle shares would be beneficial to the government. Pascual told him that the corporate finance department would study it. He called Pascual but their conversation was about delayed GSIS benefits [of government employees]. Estrada said he might have called Arellano and told him also to study the purchase of the Belle shares. He saw Ocier in Tagaytay Highlands, but they did not talk about commissions.

• Justice Hermogenes Concepcion

Chair of GSIS from July 1998 to June 2004. “The purchase of Belle shares satisfies the basic requirements of investment of GSIS funds…. It does not exceed the limits laid down by GSIS internal guidelines.” Pascual did not inform him about his conversation with Estrada about the Belle shares, and no one from the board of trustees told him that Estrada pressured them to buy Belle shares.

• Atty. Merceditas Gaculitan

Secretary of the SS Commission. (She identified the documentary evidence of the defense.)

• Reynaldo Palmiery

Then chair of the GSIS investment committee. The purchase of Belle shares was made only after the review and evaluation of the Investment Committee. GSIS had been trading in Belle shares since 1993 and that GSIS got an aggregate trading gain of P145,859,195.95 from the purchase of Belle shares.

• Rizaldy Capulong

Then assistant vice president for the Securities Trading and Management Department of the SSS. The purchase was for portfolio trading (buying and selling for short term) only. SSS had been buying and selling shares even before Oct. 21, 1999.

The defense claimed that:

• The purchase of Belle shares was valid and legal and that no commission was given to Estrada.
• SSS purchase of Belle shares was valid and regular.
• GSIS purchase was in accordance with investment policy and rules.
• The prosecution presented no evidence that Estrada received any commission or percentage from the sale of Belle shares.