Inspection of secret bank records okayed

Chief Justice Hilario Davide allowed yesterday the opening of the sealed envelope with bank records used to purchase a 7,000 square metre lot for the mansion of the mistress of President Joseph Estrada.

"The sealed envelopes may be opened in the presence of prosecution counsels and defence for makings as exhibit," said Davide in reference to the bank records which were submitted earlier by bank officials at the senate impeachment trial.

However, Davide deferred actual opening of the envelope with Equitable bank deposit records of a certain Jose Velarde, or Joe Valhalla, who issued a $2.8 million (P142 million) cheque to St. Peter's Holdings in 1999. It will be blocked anew by Estrada's defence lawyers, the reason why its implementation should be made next week.

The objections raised earlier by the defence lawyers to block the opening of the sealed envelopes were "premature," said Davide, but added the defence should be given the opportunity to object at the proper time "as a matter of due process."

The prosecution was happy with the new ruling because it has been looking for the missing link between Estrada and the owners of start-up companies that had purchased 17 mansions in two years, eventually alleged to be homes for his mistresses.

The controversial cheque was paid to Jose Luis Yulo, a presidential friend and majority owner of St. Peter's Holdings which bought the lot at 100 11th Street New Manila, where the posh Boracay mansion of Laarni Enriquez is located. Refurbished at $10 million (P500 million), it has a swimming pool with white sand and wave making machine.

At the opening of the impeachment trial, prosecutor Joker Arroyo earlier showed a photocopy of the controversial cheque, with a signature similar to Estrada's. The prosecution said it was a major piece of evidence.

"The defence does not want to open the sealed envelope because bank records could show who issued the said cheque," said Tanada. Criticising Davide, defence lawyer Andres Narvasa said the ruling was based "not on issue of materiality (to the case) but based on what he said was prematurity of the objections."

At the same time, Davide said dissenting senators could ask for a formal vote on the ruling, an issue raised by pro-administration Senator John Osmena. Defence lawyer Estelito Mendoza asked for one week for the implementation of Davide's ruling, to allow the defence to go to the Supreme Court if its motion for reconsideration is denied.

Defence lawyers earlier said the transaction between Valhalla and Yulo is immaterial because the impeachment complaint did not cover Estrada's ownership of mansions for his mistresses.