Eighteen business associates of former president Joseph Estrada contributed an estimated $20 million (P 1 billion) to the campaign fund of opposition senatorial candidates, but half the money was set aside for the failed siege on Malacanang Presidential Palace on May 1, an intelligence report said.

"Many of them are shady characters suspected of involvement in drug dealing, smuggling and jai alai (a form of gambling) operations," said National police intelligence chief Senior Superintendent Reynaldo Berroya, adding that the Philippine National Police have started investigating the identified the 18 Chinese-Filipino businessmen.

"If they (investigators) find out that there was illegal contributions or commitments for outright arming (of the pro-Estrada rallyists), that is rebellion," said presidential spokesman Rigoberto Tiglao, adding the government wants to know more details about the May 1 siege, and its 'level of organisation' (which) required huge funding.

One identified businessman was Lee Peng Wee, Estrada's friend in Zamboanga, southern Philippines. He was assigned by Estrada to negotiate the release of nine Malaysians who were part of the more than 20 victims of the Abu Sayyaf Group in Jolo in Malaysia's Sipadan Island Resort last April.

A non-government organisation from Malaysia paid for the ransom which was demanded by the group for the release of the Malaysian nationals, sources said. Later, reports alleged that Estrada and national negotiator Robert Aventajado pocketed 40 per cent of an estimated $20 million ransom payment given for all the hostages which became 40 in all.

Three major businessmen came from Manila, Visayas, central Philippines, and Mindanao, southern Philippines, sources said, adding a "special report" consisting of a complete list of the names of the traders was made for the presidential palace. One of them was Lee Peng Wee, in charge of the fund-raising in Mindanao. Henry Lim, of Steniel Paper Co, and Sebastian Chua, of Star Paper Corporation, were responsible for the fund raising in Metro Manila. David Lim, a trader in Cebu, was in charge of the fund raising in central Philippines. His brothers, Peter and Willim Lim were alleged as rice and corn smugglers, the report said.

The Manila-funders consisted of two importers of luxury vehicles, four owners of high-end entertainment bars, two hotel owners, a franchise holder for jai alai, a ball game, and a cargo company owner.

A certain Yu, an alleged oil smuggler and owner of Seaoil (which sells low cost petrol), reportedly gave $500,000 (P 25 million) for the opposition. Estrada has been accused of allowing his Chinese tycoons to have business contacts with the help of the government, when he was in power for two years.

At the same time, Estrada's business associate Mark Jimenez allegedly gave $3 million (P 150 million) for the campaign fund, the report said. He is wanted for charges in the U.S. Many of the identified funders were financiers of former Philippine National Police Chief Panfilo Lacson, a known Estrada loyalist who is seeking a senatorial seat in the May 14 polls.

Estrada himself allegedly gave an estimated $200,000 (P 10 million) for 11 senatorial candidates, but did not give money for Muslim candidate Santanina Rasul and Jamby Madrigal, scion of an old tycoon.

Sources said Estrada refused to give more money at the most crucial moment, when the non Catholic Church of Christ (INK) and the lay El Shaddai Movement pulled out from the crowd which was supposed to march to the presidential palace.

At the same time, the opposition was divided between the hardliners and the moderates, resulting in a split, which almost hampered the alleged plan.