SENATOR BLASTS EX-PRESIDENT ESTRADA FOR ILLEGAL

C O N F I D E N T I A L SECTION 01 OF 02 MANILA 001967 SIPDIS E.O. 12958: DECL: 09/15/2019 TAGS: PGOV PINR KDEM KCRM KJUS RP SUBJECT: SENATOR BLASTS EX-PRESIDENT ESTRADA FOR ILLEGAL ACTS REF: A. 07 MANILA 3520 (ARROYO PARDONS ESTRADA) ¶B. 07 MANILA 3086 (ESTRADA CONVICTED) Classified By: DCM Leslie A. Bassett, reason: 1.4 (b and d). SUMMARY -------------- ¶1. (C) In a widely anticipated speech on the Senate floor on September 14, Senator Panfilo Lacson publicly alleged that former President Joseph Estrada profited from various illegal acts during Estrada's presidency. Lacson also hinted that Estrada might bear culpability in a contracted double murder. Witnesses in the murder case had implicated both Estrada and Lacson, and Lacson likely intended to deflect attention away from himself. Lacson's speech also appears intended to undercut Estrada's legally questionable candidacy for the 2010 presidential election. Predictably, Estrada denied Lacson's allegations. End Summary. BLASTING ESTRADA -------------- ¶2. (SBU) On September 14, Senator Panfilo "Ping" Lacson, in a widely anticipated speech on the Senate floor, denounced illegal acts allegedly committed by Joseph "Erap" Estrada during Estrada's 1998-2001 presidency. Lacson, who served as Chief of the National Police under Estrada, alleged that the then-President had pressured him to tolerate illegal gambling operations and asked one of the gambling kingpins -- then-Governor of Ilocos Sur province Luis "Chavit" Singson -- to provide Estrada with a 5 million Peso monthly payoff (approximately 110,000 USD at 2000 exchange rates) that Singson normally provided to the Police Chief. (Coincidentally, Singson, who now serves as Deputy National Security Advisor, made headlines this month after he publicly admitted to assaulting his common-law wife and her paramour.) ¶3. (SBU) Lacson also alleged that Estrada had ordered him not to interfere with certain smuggled shipments of chicken parts and rice, and that Estrada had directed police harassment in order to compel a Filipino businessman to engage in a stock transaction favorable to an Estrada ally. The businessman confirmed the allegation to media on September 15. Most important, Lacson referenced the ongoing investigation into the 2000 murder of Estrada associate Salvador Dacer and his driver, Emmanuel Corbito. Two former police officers testifying in the case recently claimed in court proceedings that Lacson and Estrada were complicit in the killings. In his speech, Lacson referenced a public statement in which Estrada implicated Lacson in the murders; Lacson denied his own involvement while noting Estrada often issued instructions directly to Lacson's subordinates. Lacson promised further revelations on September 21 before concluding his speech, "God save the Philippines from Joseph Estrada." ¶4. (SBU) Following the speech, Estrada publicly denied Lacson's allegations, claiming they were part of an effort to derail Estrada's presidential candidacy. Because the constitution provides that members of the Congress are not legally liable for their statements in the legislature, Estrada cannot file libel charges against Lacson. To counterattack, however, Estrada's son, Senator Jinggoy Estrada, planned to deliver a speech critical of Lacson on September 15. POLITICAL CONTEXT -------------- ¶5. (SBU) Allegations that former President Estrada engaged in corrupt activities and profited from illegal gambling are not new. In 2007, the Philippine anti-graft court convicted Estrada of plunder, based on charges that he received payoffs from illegal gambling operations, diverted excise taxes to his personal accounts, and profited from stock manipulation (ref B). Six weeks after his conviction, however, President Macapagal-Arroyo pardoned Estrada (ref A). ¶6. (C) The Dacer-Corbito murder investigation has garnered substantial press attention, especially after unknown assailants fatally shot Jimmy Lopez, another witness in the case, on the night of September 1. (Unknown assailants in Manila also shot former police officer Wenceslao Sombero on September 12; Sombero survived and claimed the attack also related to the Dacer-Corbito case.) It appears likely that MANILA 00001967 002 OF 002 the tension between Lacson and Estrada has escalated because the two have been implicated in the case. Estrada and Lacson worked together for many years on special efforts against organized crime. Many Filipinos in the political class believe that their roles provided them with a capability not only to exact vigilante justice against criminal syndicates but also to intimidate or eliminate their personal foes. COMMENT -------------- ¶7. (C) It is unclear whether Lacson's denunciation will affect Estrada's political standing. Despite his prior conviction, Estrada, who entered politics after an acting career, remains highly popular with many economically disadvantaged voters. Credible polling organizations have consistently found him to place in the top tier of likely presidential candidates. Estrada has said publicly that he is nearly certain to run in 2010, although the constitution appears to bar him from seeking reelection, stating that, "The President shall not be eligible for any reelection." Estrada's advocates claim that "The President" refers only to an incumbent, and that Estrada should be allowed to run again because his term was cut short by the second People Power uprising that removed him from office. ¶8. (C) While some contacts have claimed that Joseph Estrada seeks political vindication through a demonstration of his enduring popularity, many believe he hopes to use his stature not in a futile quest to regain the presidency but rather to extract concessions from another candidate seeking his endorsement. Conventional wisdom holds that the former President hopes another strong candidate will invite Jinggoy Estrada to become his running mate. Meanwhile, those candidates who are unlikely to team up with the Estradas have an incentive to do what they can to further sully the former President's image. KENNEY