THE CASE OF PRESIDENT ESTRADA

FACTS:

Ombudsman Prosecutor and OIC-Director, EPIB, Office of the Ombudsman, hereby accuses former
Joseph Ejercito Estrada, together with Jose "Jinggoy" Estrada, Charlie ‘Atong" Ang, Edward Serapio,
Yolanda T. Ricaforte, Alma Alfaro, Eleuterio Tan a.k.a. Eleuterio Ramos Tan or Mr. Uy, Jane Doe a.k.a.
Delia Rajas, and John & Jane Does, of the crime of Plunder, defined and penalized under R.A. No. 7080,
as amended by Sec. 12 of R.A. No. 7659, committed as follows:

That during the period from June, 1998 to January, 2001, in the Philippines, and within the
jurisdiction of this Honorable Court, accused Joseph Ejercito Estrada, by himself and in
conspiracy with his co-accused, business associates and persons heretofore named, by taking
advantage of his official position, authority, connection or influence as President of the Republic
of the Philippines, did then and there willfully, unlawfully and criminally amass, accumulate and
acquire ill-gotten wealth, and unjustly enrich himself in the aggregate amount of
P4,097,804,173.17, more or less, through a combination and series of overt and criminal acts,
described as follows:

(a)              by receiving, collecting, directly or indirectly, on many instances, so-called "jueteng

money" from gambling operators in connivance with co-accused Jose ‘Jinggoy’ Estrada, Yolanda
T. Ricaforte and Edward Serapio, as witnessed by Gov. Luis ‘Chavit’ Singson, among other
witnesses, in the aggregate amount of FIVE HUNDRED FORTY-FIVE MILLION PESOS
(P545,000,000.00), more or less, in consideration of their protection from arrest or interference by
law enforcers in their illegal "jueteng" activities; and

(b)              by misappropriating, converting and miusing for his gain and benefit public fund in the
amount of ONE HUNDRRED THIRTY MILLION PESOS (P130,000,000.00), more or less,
representing a portion of the One Hundred Seventy Million Pesos (P170,000,000.00) tobacco
excise tax share allocated for the Province of Ilocos Sur under R.A. No. 7171, in conspiracy with
co-accused Charlie ‘Atong’ Ang, Alma Alfaro, Eleuterio Tan a.k.a Eleuterio Ramos Tan or Mr. Uy,
and Jane Doe a.k.a. Delia Rajas, as witnessed by Gov. Luis ‘Chavit’ Singson, among other
witnesses; and

(c)              by directing, ordering and compelling the Government Service Insurance System
(GSIS) and the Social Security System (SSS) to purchase and buy a combined total of
681,733,000 shares of stock of the Belle Corporatiion in the aggregate gross value of One Billion
Eight Hundred Forty-Seven Million Five Hundred Seventy Eight Thousand Fifty Seven Pesos and
Fifty Centavos (P1,847,578,057.50), for the purpose of collecting for his personal gain and
benefit, as in fact he did collect and receive the sum of ONE HUNDRED EIGHTY NINE MILLION
SEVEN HUNDRED THOUSAND PESOS (P 189,700,000.00), as commission from said stock
purchase; and

(d)              by unjustly enriching himself in the amount of THREE BILLION TWO HUNDRED
THIRTY THREE MILLION ONE HUNDRED FOUR THOUSAND ONE HUNDRED SEVENTY
THREE PESOS AND SEVENTEEN CENTAVOS (P 3,233,104,173.17) comprising his
unexplained wealth acquired, accumulated and amassed by him under his account name "Jose
Velarde" with Equitable PCI Bank;

to the damage and prejudice of the Filipino people and the Republic of the Philippines.
ISSUES

Throughout the six years over which the court proceedings in this case unfolded, this Court confronted
numerous novel and complicated legal issues (including the constitutionality of the plunder law, propriety
of house arrest, among others), heard lengthy testimonies from several dozens of witnesses from both
sides and perused voluminous documentary evidence and pleadings from the parties. Considering the
personalities involved and the nature of the crime charged, the present case aroused particularly intense
interest from the public. Speculations on the probable outcome of the case received unparalleled attention
from the media and other sectors of society. Indeed, the factual and legal complexities of the case are
further compounded by attempts to sensationalize the proceedings for various ends.

FINDINGS OF FACT

To reiterate, the crime of plunder is committed through a combination or series of overt or criminal acts [or
"predicate acts"] described in Section 1 (d) of R.A. No. 7080 as amended. The prosecution presented
overwhelming evidence that there were numerous deposits of astoundingly large sums of money into the
Jose Velarde account. However, the prosecution failed to prove the predicate act/s as defined under
Section 1(d) of R.A. No. 7080 through which the said deposits could have been acquired or amassed,
except for the amount of P189,700,000.00, representing illegal commissions from the sales of Belle
shares and the money collected from illegal gambling. It is not per se the accumulation of wealth which is
proscribed by the Anti-Plunder Law. The acquisition of wealth of not less than P50,000,000.00 must be
linked to the commission of overt or criminal acts falling within the ambit of the said law. All that the
prosecution has succeeded in showing is that the Jose Velarde account is the repository or receptacle of
vast wealth belonging to FPres. Estrada.

DECISION

Republic Act (RA) No. 7080 as amended was approved on July 12, 1991, creating and introducing into
our criminal legal system the crime of "plunder". This law penalizes public officers who would amass
immense wealth through a series or combination of overt or criminal acts described in the statute in
violation of the public trust. RA No. 7080 or the Anti-Plunder Law was a consolidation of Senate Bill no.
733 and House Bill No. 22752. The Explanatory Note of Senate Bill No. 733, quoted in the case
of Estrada v. Sandiganbayan (G.R. No. 148965, February 26, 2002, 377 SCRA 538, 555), explains the
reason behind the law as follows:

Plunder, a term chosen from other equally apt terminologies like kleptocracy and economic
treason, punishes the use of high office for personal enrichment, committed thru a series of acts
done not in the public eye but in stealth and secrecy over a period of time, that may involve so
many persons, here and abroad, and which touch so many states and territorial units. The acts
and/or omissions sought to be penalized do not involve simple cases of malversation of public
funds, bribery, extortion, theft and graft but constitute plunder of an entire nation resulting in
material damage to the national economy. The above-described crime does not yet exist in
Philippine statute books. Thus, the need to come up with a legislation as a safeguard against the
possible recurrence of the depravities of the previous regime and as a deterrent to those with
similar inclination to succumb to the corrupting influence of power.

RULING OF THE COURT

ON THE CHARGE OF PLUNDER
WHEREFORE, in view of all the foregoing, judgment is hereby rendered in Criminal Case No. 26558
finding the accused, Former President Joseph Ejercito Estrada, GUILTY beyond reasonable doubt of the
crime of PLUNDER defined in and penalized by Republic Act No. 7080, as amended. On the other hand,
for failure of the prosecution to prove and establish their guilt beyond reasonable doubt, the Court finds
the accused Jose "Jinggoy" Estrada and Atty. Edward S. Serapio NOT GUILTY of the crime of plunder,
and accordingly, the Court hereby orders their ACQUITTAL.

The penalty imposable for the crime of plunder under Republic Act No. 7080, as amended by Republic
Act No. 7659, is Reclusion Perpetua to Death. There being no aggravating or mitigating circumstances,
however, the lesser penalty shall be applied in accordance with Article 63 of the Revised Penal Code.
Accordingly, accused Former President Joseph Ejercito Estrada is hereby sentenced to suffer the penalty
of Reclusion Perpetua and the accessory penalties of civil interdiction during the period of sentence and
perpetual absolute disqualification.

The period within which accused Former President Joseph Ejercito Estrada has been under detention
shall be credited to him in full as long as he agrees voluntarily in writing to abide by the same disciplinary
rules imposed upon convicted prisoners.

Moreover, in accordance with Section 2 of Republic Act No. 7080, as amended by Republic Act No. 7659,
the Court hereby declares the forfeiture in favor of the government of the following:

(1) The total amount of Five Hundred Forty Two Million Seven Hundred Ninety One Thousand
Pesos (P545,291,000.00), with interest and income earned, inclusive of the amount of Two
Hundred Million Pesos (P200,000,000.00), deposited in the name and account of the Erap
Muslim Youth Foundation.

(2) The amount of One Hundred Eighty Nine Million Pesos (P189,000,000.00), inclusive of
interests and income earned, deposited in the Jose Velarde account.

(3) The real property consisting of a house and lot dubbed as "Boracay Mansion" located at #100
11th Street, New Manila, Quezon City.

The cash bonds posted by accused Jose "Jinggoy" Estrada and Atty. Edward S. Serapio are hereby
ordered cancelled and released to the said accused or their duly authorized representatives upon
presentation of the original receipt evidencing payment thereof and subject to the usual accounting and
auditing procedures. Likewise, the hold-departure orders issued against the said accused are hereby
recalled and declared functus oficio.