FORMER PRESIDENT ESTRADA HEATEDLY DENIES CHARGES

C O N F I D E N T I A L SECTION 01 OF 02 MANILA 001342 SIPDIS SIPDIS DEPT FOR EAP, EAP/MTS, EAP/MLS, INR/EAP, INR/B, EB PLS PASS AID:CDOWNEY PLS PASS NSC FOR HMORROW E.O. 12958: DECL: 03/23/2016 TAGS: PGOV KCOR ECON PINR PINS RP SUBJECT: FORMER PRESIDENT ESTRADA HEATEDLY DENIES CHARGES IN CORRUPTION TRIAL REF: A. MANILA 0830 ¶B. MANILA 0141 Classified By: Acting Pol/C Joseph L. Novak for reasons 1.4(b) and (d). ¶1. (C) Summary: Former president Joseph Estrada testified for the first time in his almost five-year old trial on serious corruption charges on March 22. As expected, Estrada vehemently denied all charges. The government has sent conflicting signals as to whether it wants to continue to try to reach out to Estrada in sporadic talks that have so far proven fruitless. Estrada is clearly using the trial to play to his base among poorer Filipinos and embarrass the GRP's case, which has been severely hampered by delays brought about by endless defense motions. End Summary. -------------- Estrada Takes the Stand -------------- ¶2. (U) On March 22, former president Joseph "Erap" Estrada testified for the first time as the defense's 79th and final witness in a corruption case that has dragged on for almost five years, thus far. Estrada was charged with plunder and other crimes in April 2001, after being forced out of Malacanang during the "EDSA 2 People Power" movement in favor of then-vice president and current President Arroyo in January 2001. (Note: Plunder is a non-bailable offense that carries a maximum penalty of death. End Note.) During the day-long proceedings at the "Sandiganbayan" (Anti-Graft Court) in Quezon City in metro Manila, Estrada vehemently denied allegations that he and members of his family accepted millions of dollars in kickbacks from tobacco excise taxes. He also challenged the credibility of the prosecution's star witness, former Ilocos Sur Governor Luis "Chavit" Singson. Estrada, who remains under house arrest in a Manila suburb, asserted that the charges against him were "trumped up" for political reasons and that he was "framed." He also insisted that he had been illegally toppled by "mob rule" in 2001. ¶3. (U) Several hundred Estrada supporters, some carrying signs reading "Free Erap," attempted to march to the courthouse from a nearby church. About 1,000 police who had been deployed for the event prevented the group from reaching the Sandiganbayan and by mid-day the demonstrators had largely dispersed. No arrests or injuries were reported. ¶4. (U) The case has been dogged by long delays, usually due to countless defense procedural motions. With Estrada taking the stand as the final witness, however, it appears that the end may be in sight. Estrada is scheduled to resume his testimony on March 29 and to continue testifying once a week for as long as required. In upcoming testimony Estrada is expected to address charges that he received massive payoffs from "jueteng" (illegal gambling operations). The prosecution -- which wrapped up its case in April 2003 -- will conclude by cross-examining Estrada, after which there will be closing arguments. The case will then be submitted to the three-judge panel for a final ruling. -------------- Conflicting GRP Signals -------------- ¶5. (SBU) Presidential Chief of Staff Mike Defensor, who had been the GRP's main link to the Estrada camp, announced on March 21 that Malacanang had suspended "reconciliation" efforts with Estrada because of alleged involvement by Estrada relatives and supporters in destabilization efforts against the government in February. (Note: In response to alleged plotting, President Arroyo imposed a State of National Emergency from February 24 - March 3 -- see ref B. End Note.) The next day Defensor announced that he was turning over the task of reconciliation to newly-appointed Department of Interior and Local Government (DILG) Secretary Ronaldo "Ronnie" Puno. Defensor stated that he had grown weary of the lack of "good faith" in the talks, adding that Puno was well-equipped to take over. ¶6. (C) Estrada, for his part, does not appear to be eager to resume talks with the Arroyo Administration any time soon. Spokesman Didagen Dilangalen said in a March 21 interview that Estrada would only talk about reconciliation with the MANILA 00001342 002 OF 002 government after the end of the ongoing trial. In a March 16 meeting with Acting Pol/C, Malacanang Chief Political Adviser Gabby Claudio commented that he placed "little faith" in the reconciliation effort. He added, however, that President Arroyo was "committed to continue trying to work with Estrada because that is what many Filipinos want." -------------- Comment -------------- ¶7. (C) Estrada is clearly using the trial to play to his base among poorer Filipinos. He succeeded in doing that in his first appearance on the docket, though it is doubtful that the broader Filipino public was very impressed. Estrada, due to his own shady dealings and poor work habits as president, long ago lost any luster he once had. That said, the GRP is not in an easy spot; the prosecution's case has been severely hampered by delays brought about by endless defense motions and many Filipinos have clearly grown weary or bored with the whole matter. Aware of this, the government will continue to keep the door of "reconciliation" slightly ajar as an option so as to avoid appearing vindictive, a serious cultural taboo in the Philippines. Visit Embassy Manila's Classified SIPRNET website: http://www.state.sgov.gov/p/eap/manila/index. cfm You can also access this site through the State Department's Classified SIPRNET website: http://www.state.sgov.gov/ Kenney