Estrada 'major share-holder in BWRC'

Philippine President Joseph Estrada is a major share-holder in the controversial Best World Resources Corporation (BWRC) whose known majority ownerDante Tan was accused of insider trading.

The shares of his company increased 5,000 per cent from 1998 to 1999, a former finance secretary told the senate impeachment trial of the president. "One time, BWRC majority owner owner Dante Tan came to my office and asked for assistance, saying he had been ousted as manager of his firm. I told him, I could not help you, you and your partner must talk about it, after which he told me that his partner was the president," said Edgardo Espiritu.

"He (Dante) said the situation at the BWRC had changed because he was asked by his partner to allow Mark Jimenez to gain ownership and control of the company," said Espiritu. "It seemed that Mark Jimenez became more prominent, and that the president wanted the management of the BWRC to go to the former," said Espiritu, adding that he asked Tan, "Why did Mark Jimenez overcome you when you are the owner of the company?"

When the BWGEC's share prices rose 5,000 per cent from less than $ .04 (P 2.00) in March 1998 to $ 2.16 (P 108.00) in October 1999, Espiritu said he and the president had a talk. "He was quite excited. He told me, 'I'd earned a lot with the BW Resources (shares increase).' I guess in his excitement, he told me that in Tagalog (Filipino)," said Espiritu.

"At first I did not believe what I heard. Then I thought, so it was true that the president is part of the BWRC, that Dante Tan was telling the truth," said Espiritu. Espiritu said he had a meeting Estrada for the former to ask for instructions because at that time, there was a $ 36 million (P 1.8 billion) float at the stock exchange, a situation in which brokers could not pay or deliver and innocent buyers were affected.

The problem at the main index prompted a meeting among the country's economic secretaries such as Espiritu, Trade Secretary Jose Pardom Central Bank Governor Rafael Buenaventura. There was another meeting with Philippine Stock Exchange president Jose Luis Yulo,former PSE Chairman Ping Kalaw, and broker Vivian Yuchengco regarding the float.

In another meeting with Dante Tan, Espiritu said the former claimed he had nothing to do with the shares run-up, adding three other people, namely Mark Jimenez, Nelson Sy, and Manny Oscher, were responsible for it.

Former chief of the Securities and Exchange Commission Perfecto Yasay said at the senate impeachment trial of the president yesterday that Estrada suspended him as the SEC chief so that the sale of the shares of the Philippine Long Distance Telephone Company (PLDT) can go through.

"The reason why I was placed under preventive suspension in April 1999 was so that the sale of the PLDT would proceed without any hitch. The former legal adviser Harriet Demetriu told me that," said Yasay.