Puwersa seeks probe of Cayetano on BW shares

The Puwersa ng Masa (PnM) urged the Senate Blue Ribbon committee yesterday not to single out opposition senators as it sought a probe into allegations that Sen. Renato Cayetano earned more than P52 million trading in the controversial Best World (BW) shares of stock last year.

PnM spokesman Jesus Crispin Remulla said the move to probe Cayetano’s transactions is necessary to erase suspicion that the Senate is trying to cover up bribery allegations against First Gentleman Jose Miguel Arroyo.

He also took note of the apparent eagerness of some administration lawmakers to investigate Senators Panfilo Lacson and Luisa Ejercito over alleged ownership of millions in bank accounts abroad.

Remulla said Cayetano "clearly profited from BW transactions two years ago and last year" but was not investigated by his colleagues.

"Cayetano got BW shares of stocks without paying for them," Remulla told reporters at a forum at the Sulo Hotel in Quezon City yesterday.

BW was involved in the biggest trading scandal to rock the local stock market. Officials of the gaming firm have been accused of causing artificial stock sales in an effort to boost the price of shares by more than 5,000 percent from March to October 1999.

Remulla said he has facts and evidence all traceable to Cayetano.

"This is not pure innuendo. I have them in my possession," he said.

Remulla said he sent a two-page letter addressed to Blue Ribbon chairman Sen. Joker Arroyo urging a probe of Cayetano. Attached to the letter were photocopies of checks allegedly given by BW owner Dante Tan.

The PnM spokesman said Cayetano spoke with Tan on the acquisition of BW shares in 1999.

"At that time, BW shares were heavily traded at the Philippine Stock Exchange and its value was consistently rising. Cayetano allegedly requested Tan to transfer to him ownership of BW shares," Remulla said.

"On May 13, 1999 Tan instructed his broker at De Castro Securities to transfer two million shares of BW from his account to that of Cayetano which was numbered CYC 1213," he added.

Remulla said that after the initial transfer, the value of BW shares still continued to rise. Subsequently, De Castro Securities issued three checks to Cayetano which represented profit from the sale of BW shares.

"It appears the profit was from the two million shares that Mr. Tan initially transferred to Senator Cayetano’s account, which ballooned to P50,459,820.30," Remulla said.

He claimed Cayetano never included the profit in his statement of assets and liabilities filed for the year 2000. The case was referred last year to the Senate ethics committee headed by Sen. Juan Flavier, who cleared Cayetano.

Flavier said Cayetano should be commended for announcing during the BW investigation by the committee on banks headed by then Sen. Raul Roco that he had invested in BW.

Cayetano inhibited himself from participating in the BW probe after making the formal announcement. He also acknowledged earning about P40 million from his BW investments.

"It is clear from the foregoing that Senator Cayetano profited from his BW transactions. It is not clear, however, if the transactions were aboveboard. Senator Cayetano must respond to queries regarding his BW transactions. The facts show the money was paid to him without a clear showing that he was entitled to it," Remulla said.