Presidency of Joseph Estrada

• Inaugural Address, (June 30, 1998)
• First State of the Nation Address, (July 27, 1998)
• Second State of the Nation Address, (July 26, 1999)
• Third State of the Nation Address, (July 24, 2000)

• Second RP-US Visiting Forces Agreement
• Philippine Clean Air Act of 1999 (Republic Act No. 8749) – designed to protect and preserve the environment and ensure the sustainable development of its natural resources
• Incentives for Regional Headquarters of Foreign Multinationals (Republic Act No. 8756) – The measure grants a host of incentives to multinational firms establishing their regional hubs in the country. It also provides a tax- and duty-free operating environment for them, and multiple entry visas to expatriates and their families, as well as a flat income tax rate of 15%.
• Retail Trade Liberalization Act (Republic Act No. 8762) – The bill dismantles 40 years of state protectionism over the country's retail trade industry and opens the sector to big foreign players.
• New General Banking Act (Republic Act No. 8791) – The measure opens up the local banking industry to foreign players after almost 50 years of having it exclusively reserved and protected for Filipino nationals.
• Electronic Commerce Act of 2000 (Republic Act No. 8792) – Outlaws computer hacking and provides opportunities for new businesses emerging from the Internet-driven New Economy
• New Securities Act (Republic Act No. 8799) – This law liberalizes the securities market by shifting policy from merit regulation to full disclosure. With its strengthened provisions against fraud, the measure is expected to pave the way for the full development of the Philippine equities and securities market.

Cabinet level

Others

• Flagship Programs
  • Robert Aventajado (1998–2001)
• Director General, Philippine National Police
  • Gen. Roberto Lastimoso (1998–1999)
  • Gen. Edmundo L. Larozza, Officer-in-Charge (1999)
  • Gen. Panfilo Lacson (1999–2001)

Estrada (7th from right) during the APEC summit in 2000.

Even with its strong economic team, the Estrada administration failed to capitalize on the gains of the previous administration. Estrada's administration was severely criticized for cronyism, incompetence, and corruption, causing it to lose the confidence of foreign investors. Foreign investors' confidence was further damaged when, in his second year, Estrada was accused of exerting influence in an investigation of a friend's involvement in stock market manipulation. Social unrest brought about by numerous bombing threats, actual bombings, kidnappings, and other criminal activities contributed to the economy's troubles. Economic performance was also hurt by climatic disturbance that caused extremes of dry and wet weather.[6]

Toward the end of Estrada's administration, the fiscal deficit had doubled to more than ₱100 billion from a low of ₱49 billion in 1998.[7] Despite such setbacks, the rate of GNP in 1999 increased to 3.6 percent from 0.1 percent in 1998, and the GDP posted a 3.2 percent growth rate, up from a low of −0.5 percent in 1998. Debt reached ₱2.1 trillion in 1999. Domestic debt amounted to ₱986.7 billion while foreign debt stood at US$52.2 billion.[8]

During his term, Estrada ordered to the National Telecommunications Commission to adopt a Filipino language-based radio format known as masa. Named for his icon Masa (or Masses), all radio stations adopted the masa format since 1998, as DJ's wanted to replace English language-based stations immediately to air OPM songs and requests. After his term in 2001, several FM stations continued to adopt the masa format nationwide.

To investigate the alleged anomalies of the Ramos administration, Estrada created the "Saguisag Commission" headed by former Senator Rene Saguisag.[9] Ramos, however, refused to appear before the commission, for he argued that the jurisdiction lies in the court.[9]

In the so-called Centennial Expo scam, Mr. Ramos claimed the Senate committee that conducted the probe "never closed the case" because it did not issue any final report. Instead, he rued, Estrada created an administrative fact-finding commission headed by former Senator Rene Saguisag. But six former government officials during his administration who were implicated in the Centennial Expo scam were subsequently "exonerated" by the Ombudsman in October 1998. Former Vice President Salvador Laurel, who chaired the Centennial Expo and was among the principal accused in this case, however, died before he could be exonerated, Mr. Ramos rued.[9]

In the Smokey Mountain case, he said, he appeared in 2000 before the public hearing of the House committee on good government chaired by then Rep. Ed Lara whose panel cleared the project as valid and legal. Subsequently, he said, the Supreme Court ruled 13–0, with 2 abstentions, in favor of the project. The SC also upheld the legality and constitutionality of the project and dismissed the petition filed against it by Sen. Miriam Defensor Santiago.[9]

In the questioned Masinloc power project, he said, the Joint Congressional Oversight Committee looked into the privilege speech of then Sen. Aquilino Pimentel, Jr. on Ramos' alleged influence that this power plant be sold to a consortium connected with former Malaysian Prime Minister Mahathir Muhammad.[9]

The Estrada administration widened the coverage of the Comprehensive Agrarian Reform Program (CARP) to the landless peasants in the country side,[10] distributing more than 266,000 hectares (660,000 acres) of land to 175,000 landless farmers, including land owned by the traditional rural elite. (Total of 523,000 hectares to 305,000 farmers during his 2nd year as president).[11] In September 1999, he issued Executive Order 151, also known as Farmer's Trust Fund, which allows the voluntary consolidation of small farm operation into medium and large scale integrated enterprise that can access long-term capital. Estrada launched the Magkabalikat Para sa Kaunlarang Agraryo or MAGKASAKA. The Department of Agrarian Reform forged into joint ventures with private investors into agrarian sector to make FBs competitive.[12]

In 1999, a huge fund was allocated to agricultural programs;[13] one of these is the Agrikulturang Maka Masa, through which it achieved an output growth of 6 percent, a record high at the time,[8] thereby lowering the inflation rate from 11 percent in January 1999 to just a little over 3 percent by November of the same year.[8]

In 1998, by virtue of Executive Order No. 8, Estrada created the Presidential Anti-Organized Crime Task Force (PAOCTF) to minimize, if not totally eradicate, car theft and worsening[14] kidnapping cases in the country.[14] With the help of this task force, the Philippine National Police achieved a record-high trust rating of +53 percent.[8] Estrada also created the Philippine Center on Transnational Crime (PCTC) in 1999, with the objective of formulating and implementing a concerted of action of all law enforcement, intelligence and other government agencies for the prevention and control of transnational crime.[15]

In November 2000, during the Juetenggate scandal of Estrada, high officials of the PAOCTF–Cesar Mancao, Michael Ray Aquino, Glen Dumlao, and PAOCTF chief Panfilo Lacson—were implicated in the murder of publicist Salvador Dacer and his driver Emmanuel Corbito in Cavite.[14] Dacer at that time was accused to be behind a black propaganda against Estrada[14]–a charge Dacer denied.[14]

The death penalty law in the Philippines was reinforced during the incumbency of Estrada's predecessor, Fidel Ramos. This law provided the use of the electric chair until the gas chamber (method chosen by government to replace electrocution) could be installed. However, the electric chair was destroyed some time prior due to a typhoon, leaving only a blackened scorch mark. Some sources have said it had burnt out the last time it had been used.

The first execution by lethal injection took place under Estrada's administration. On February 5, 1999, Leo Echegaray, a house painter, was executed for repeatedly raping his stepdaughter. He was the first convict to be executed since the re-imposition of death penalty in 1993.[16] His execution induced once again a heated debate between the anti and the pro-death penalty forces in the Philippines with a huge majority of people calling for the execution of Echegaray.

The Estrada administration supported death penalty as the antidote to crime.[16] The opposition maintained that the death penalty is not a deterrent and that there have been studies already debunking the deterrence theory. Legislators and politicians refused to heed the recommendation of the Supreme Court for Congress to review the death penalty riding on the popularity of the pro-death penalty sentiment.

Six years after its re imposition, more than 1,200 individuals have been sentenced to death and seven convicts have been executed through lethal injection.

From 1994 to 1995 the number of persons on death row increased from 12 to 104. From 1995 to 1996 it increased to 182. In 1997 the total death convicts was at 520 and in 1998 the inmates in death row was at 781. As of November 1999 there are a total of 956 death convicts at the National Bilibid Prisons and at the Correctional Institute for Women.

As of December 31, 1999, based on the statistics compiled by the Episcopal Commission on Prisoner Welfare of the Catholic Bishops Conference of the Philippines, there were a total of 936 convicts interned at the National Bilibid Prisons and another 23 detained at the Correctional Institute for Women. Of these figures, six are minors and 12 are foreigners.

Estrada called a moratorium in 2000 to honor the bimillennial anniversary of Jesus' birth. Executions were resumed a year later.[16]

Estrada immediately ordered the removal of all sovereign guarantees on contracts for public projects which would require the sovereign Filipino people to assume the financial losses of private companies doing business with the government. Records showed that until January 20, 2001, Estrada did not sign a single government contract with a sovereign guarantee.[17]

Under Estrada, there was an attempt to change the 1987 constitution, through a process termed as CONCORD, or Constitutional Correction for Development. Unlike Charter change under presidents Ramos and Arroyo, the CONCORD proposal, according to its proponents, would only amend the 'restrictive' economic provisions of the constitution that is considered as impeding the entry of more foreign investments in the Philippines.

There were objections from opposition politicians, religious sects and left wing organizations based on diverse arguments such as national patrimony and the proposed constitutional changes would be self-serving. Like his predecessor, Estrada's government was accused of pushing Charter change for their own vested interests.

An MILF soldier trains with an M60 machine gun.

During the Ramos administration a cessation of hostilities agreement was signed between the Philippine Government and the Moro Islamic Liberation Front (MILF) in July 1997. This was continued by a series of peace talks and negotiations in Estrada administration.[18] However the Moro Islamic Liberation Front (MILF), an Islamic group formed in 1977, seeks to be an independent Islamic State from the Philippines, and despite the agreements, a sequence of terrorist attacks against the military and civilians still continued.[18] Such of those attack are 277 violations committed, kidnapping a foreign priest, namely Father Luciano Benedetti, the occupying and setting on fire of the municipal hall of Talayan, Maguindanao; the takeover of the Kauswagan Municipal Hall; the bombing of the Lady of Mediatrix boat at Ozamiz City; and the takeover of the Narciso Ramos Highway. The Philippine government also learned that the MILF has links with Al-Qaeda.[19] Because of this, on March 21, 2000, Estrada declared an "all-out-war" against the MILF. During the war the Catholic Bishops' Conference of the Philippines (CBCP) asked Estrada to have a cease-fire with MILF, but Estrada opposed the idea arguing that a cease-fire would cause more terrorist attacks. For the next three months of the war, Camp Abubakar, headquarters of the MILF, fell along with other 13 major camps and 43 minor camps, and then all of which became under controlled by the government. The MILF leader Salamat Hashim fled the country and went to Malaysia. The MILF later declared a Jihad on the government. On July 10 of the same year, the President went to Mindanao and raised the Philippine flag symbolizing victory. After the war the President said, "... will speed up government efforts to bring genuine and lasting peace and development in Mindanao". In the middle of July the president ordered the military to arrest top MILF leaders.[20]

High on the list of priorities was the plight of MILF guerrillas who were tired of fighting and had no camps left to report to. On October 5, 2000, the first massive surrender of 669 MILF mujahideen led by the renegade vice mayor of Marugong, Lanao del Sur Malupandi Cosandi Sarip and seven other battalion commanders, surrendered to Estrada at the 4th ID headquarters in Camp Edilberto Evangelista in Cagayan de Oro. They were followed shortly by a second batch of 855 surrenderees led by MILF Commander Sayben Ampaso on December 29, 2000.[21]

The war with the MILF was severely criticized by foreign and media observers. Agriculture Secretary Edgardo Angara bridled at the high cost of Mindanao specifically the diversion of resources from military operations that eat away from the agriculture modernization program. Angara was quoted as saying "What General Reyes asks, he gets". Moreover, the fighting in Mindanao destroyed more than P135 million worth of crops and 12,000 hectares of rice and corn fields.[22]

On 1999, a Visiting Forces Agreement (VFA) with the United States was ratified in the Senate.[24] The first VFA was signed under President Ramos in 1998, and the second was subsequently signed under Estrada; the two agreements came to effect a year later. The primary effect of the Agreement is to require the U.S. government to: notify Philippine authorities when it becomes aware of the apprehension, arrest or detention of any Philippine personnel visiting the U.S.; and when so requested by the Philippine government, to ask the appropriate authorities to waive jurisdiction in favor of the Philippines, except cases of special interest to the U.S. departments of State or Defense.[25]^{[VIII 1]}

The Agreement contains various procedural safeguards which amongst other things establish the right to due process and proscribe double jeopardy[25]^{[VIII 2–6]}. The agreement also, among other provisions, exempts RP personnel from visa formalities and guarantees expedited entry and exit processing[25]^[IV]; requires the U.S. to accept RP driving licenses[25]^[V]; allows RP personnel to carry arms at U.S. military installations while on duty[25]^[VI]; provides personal tax exemptions and import/export duty exclusions for RP personnel[25]^{[X, XI]}; requires the U.S. to provide health care to RP personnel[25]^[XIV]; and exempts RP vehicles, vessels, and aircraft from landing or ports fees, navigation or overflight charges, road tolls or any other charges for the use of U.S. military installations[25]^[XV].

Estrada hosted the third Informal ASEAN summit at the Philippine International Convention Center (PICC) from November 24–28, 1999. He met with the leaders of the nine ASEAN member-countries and three dialogue partners of the regional grouping, namely China, Japan and the Republic of Korea.[26] The leaders of the 10-member ASEAN and their three dialogue partners vowed to further broaden East Asia cooperation in the 21st century to improve the quality of life of peoples in the region; they also agreed to strengthen cooperation in addressing common concerns in the area of transnational issues in the region.[26]

After winning the 1998 presidential elections on May of that year, newly elected president Estrada issued Administrative Order No. 1, which ordered the removal of Richard Gordon as chairman of the Subic Bay Metropolitan Authority (SBMA).[27] Estrada appointed Felicito Payumo, Gordon's critic and congressman of Bataan as new chairman. Gordon refused to step down, stating that his re-appointment from the Ramos administration gave him civil service protection.[28] The removal process was not easy; hundreds of volunteers and paid people barricated the gates of SBMA and Gordon locked himself inside the SBMA Administrative Office Building 229. After this, Gordon was dubbed a dictator because he rebelled against an executive order. The issue sparked the interest local and foreign press known as the Showdown at Subic.[29]

Gordon filed for a temporary restraining order before the local court. The local court of Olongapo granted Gordon's request but Payumo's party filed an appeal before the Court of Appeals (CA). The CA reversed the local court's ruling and it was affirmed by the Supreme Court.[28] With the Supreme Court decision, Gordon called Payumo and turned over the reins of SBMA at the Subic Bay Yacht Club two months later on September 3, 1998. Together with the Subic volunteers, they cleaned up the facility.

In 1998, Estrada allegedly appointed a cousin, Cecilia de Castro, as presidential assistant. The President denied knowing her in the wake of the textbook scam in 1998. The President later intervened in the investigation of the said scam.[30]

Estrada criticized the Philippine Daily Inquirer, the nation's most popular broadsheet newspaper, for "bias, malice and fabrication" against him.[31] In 1999, several government organizations, pro-Estrada businesses, and movie producers simultaneously pulled their advertisements in the Inquirer.[31][32] The presidential palace was widely implicated in the advertising boycott, prompting sharp criticism from international press freedom watchdogs.[32][33]

Estrada launched a libel suit against the country's oldest newspaper the Manila Times over a story that alleged corruption in the awarding of a public works project. After a personal apology from an owner was published, the libel suit was dropped.[32][34] Within three months the Manila Times was sold to a "housing magnate with no previous newspaper experience".[32]

BW Resources, a small gaming company listed on the Philippine Stock Exchange (PSE) and linked to people close to Estrada, experienced "a meteoric rise"[35] in its stock price due to suspected stock price manipulation.[35] The ensuing investigation led only to further confusion when the head of the compliance and surveillance group of the PSE and his entire staff resigned[36][37] saying "I believe I can no longer effectively do my job."[36] The events created a negative impression. "The BW controversy undermined foreign investor confidence in the stock market"[37] and "also contributed to a major loss of confidence in the Philippines among foreign and local investors on concerns that cronyism may have played a part."[36]

The Philippine Center for Investigative Journalism has reported that there are 66 corporate records wherein Estrada, his wife, mistresses and children are listed as incorporators or board members. Thirty-one of these companies were set up during Estrada's vice-presidential tenure and one when he assumed the presidency. Based on the 1998 and 1999 financial statements, 14 of the 66 companies have assets of over ₱600 million.

On October 15, 1998, First Lady Loi Ejercito, registered with the Securities and Exchange Commission her private foundation—the Partnership for the Poor Foundation, Inc.—which provides relief and livelihood to the poor. A few months after its incorporation, the foundation received ₱100 million from the Philippine Charity Sweepstakes Office (PCSO) as donation. The donation far exceeded the PCSO's combined donation of ₱65 million to regular beneficiaries like orphanages and hospitals. The complainants consider this a conflict-of-interest. The donation of government funds to the private foundation of the First Lady was also found to have been delivered to their legal residence in San Juan, Metro Manila.[30]

Estrada was reported by his Chief of Staff Aprodicio Laquian to have allegedly spent long hours drinking with shady characters as well as "midnight drinking sessions" with some of his cabinet members during meetings.[38] Members of the so-called midnight cabinet included Ilocos Sur Governor Chavit Singson, Caloocan Representatitve Luis 'Baby' Asistio, and BW Resources Corp. head Dante Tan.[39]

During the juetenggate scandal, Estrada's critics claimed that Estrada's mistresses received financial benefits from the President.[40]

Valenzuela Representative Magtanggol Gunigundo II exposed the assignment of Estrada of some seized luxury vehicles and SUVs to his Cabinet secretaries and favored political allies through an obscure office "Presidential Retrieval Task Force."[41] Estrada initially resisted his critics' calls to return the "hot cars" to the Bureau of Customs, and challenged them to file a case against him.[42] But, by November, he withdrew his earlier decision and instructed the Customs to dispose the vehicles through an auction.[43]

Chavit Singson in October 2000 alleged he gave Estrada ₱400 million as payoff from illegal gambling profits. On October 16, 2000, he accused Estrada, as the "lord of all jueteng lords" for receiving 5 million pesos protection money from jueteng every month during his term of presidency.

Salvador "Bubby" Dacer, publicist in the Philippines, and his driver, Emmanuel Corbito, were abducted in Makati, the business district of Manila. They were later killed, and their vehicle dumped. In 2001, a number of arrests were made.

The ultimate reasons for Dacer's murder remain a subject of debate. Fidel Ramos has publicly accused his successor, Estrada, of giving the original order—Estrada was mired in a corruption scandal at the time, and according to some reports, Estrada believed Dacer was helping Ramos destabilize his rule.

On January 17, 2001, the impeachment trial of Estrada moved to the investigation of an envelope containing evidence that would allegedly prove acts of political corruption by Estrada; senators allied with Estrada moved to block the evidence. The conflict between the senator-judges, and the prosecution became deeper, but then Senate Majority Floor Leader Francisco Tatad requested to the Impeachment court to make a vote for opening the second envelope. The vote resulted in 10 senators in favor of examining the evidence, and 11 senators in favor of suppressing it. After the vote, Senator Aquilino Pimentel, Jr. resigned as Senate President and walked out of the impeachment proceedings together with the 9 opposition Senators and 11 prosecutors in the Estrada impeachment trial. The 11 administration senators who voted YES to block the opening of the second envelope remained in Senate Session Hall together with the members of the defense. They were chanted with "JOE'S COHORTS" where their surnames were arranged.

Estrada in 2000

The Estrada presidency was soon hounded by charges of plunder and corruption. Estrada was reported by his Chief of Staff Aprodicio Laquian to have allegedly spent long hours drinking with shady characters as well as "midnight drinking sessions" with some of his cabinet members during meetings.[38] In October 2000, an acknowledged gambling racketeer, Luis "Chavit" Singson, governor of the province of Ilocos Sur, alleged that he had personally given Estrada the sum of 400 million pesos ($8,255,933) as payoff from illegal gambling profits, as well as 180 million pesos ($3,715,170) from the government price subsidy for the tobacco farmers' marketing cooperative.

Singson's allegation caused an outcry across the nation, culminating in Estrada's impeachment by the House of Representatives on November 13, 2000, which did not succeed. The articles of impeachment were then transmitted to the Senate and an impeachment court was formed, with Chief Justice Hilario Davide, Jr. as presiding officer.

Major television networks pre-empted their afternoon schedules to bring full coverage of the Impeachment Trial.

During the trial, the prosecution presented witnesses and evidence to the impeachment court regarding Estrada's involvement in an illegal numbers game, also known as jueteng, and his maintenance of secret bank accounts. Estrada's legal team denied such allegations including his ownership of an account under the name "Jose Velarde". In February 2001, at the initiative of Senate President Aquilino Pimentel, Jr., the second envelope was opened before the local and foreign media, and it contained a document stating that Jaime Dichavez and not Estrada owned the "Jose Velarde Account".[44][45]

Ilocos Sur Governor Luis "Chavit" Singson was one of the witnesses who testified against Estrada. Estrada and the Singson were said to be "partners" in-charge of the operations of illegal gambling in the country. Singson feared that he would be charged and stripped of power (there have been talks about the governor making a deal with the opposition... he was to help incriminate Estrada and he would be compensated for his service), but he was offered immunity by anti-Estrada lawmakers. He was then asked to accuse Estrada of having committed several illegal acts. Vice-President of then Equitable-PCI Bank Clarissa Ocampo testified that she saw Estrada sign the false name "Jose Velarde" on the banking document and this was also witnessed by Apodicio Laquian.[46]

According to a 2004 Transparency International report, Estrada was ranked the world's tenth most corrupt head of government, and being the second Philippine Head of State after Marcos in terms of corruption.[47][48]

On the evening of January 16, 2001, the impeachment court, whose majority were political allies of Estrada,[49] voted not to open an envelope that was said to contain incriminating evidence against the president. The final vote was 11–10, in favor of keeping the envelope closed. The prosecution panel (of congressmen and lawyers) walked out of the Impeachment Court in protest of this vote. Others noted that the walkout merited a contempt of court which Chief Justice Hilario Davide Jr., intentionally or unintentionally, did not enforce.[50] The afternoon schedule of television networks covering the Impeachment were pre-empted by the prolongation of the day's court session due to the issue of this envelope. The evening telenovelas of networks were pushed back for up to two hours. That night, anti-Estrada protesters gathered in front of the EDSA Shrine at Epifanio de los Santos Avenue, not too far away from the site of the 1986 People Power Revolution that overthrew Ferdinand Marcos. A political turmoil ensued and the clamor for Estrada's resignation became stronger than ever. In the following days, the number of protesters grew to the hundreds of thousands.

On January 19, 2001, the Armed Forces of the Philippines, seeing the political upheaval throughout the country, decided to withdraw its support from the president and transfer its allegiance to the vice president, Gloria Macapagal Arroyo. The following day, the Supreme Court declared that the seat of presidency was vacant.

Arroyo is sworn in as the 14th President of the Philippines by Chief Justice Hilario Davide Jr. on January 20, 2001.

At noon, the Supreme Court declared that Estrada "constructively resigned" his post and Chief Justice Davide swore in the constitutional successor, Gloria Macapagal Arroyo, as President of the Philippines.[51] Prior to Estrada's departure from Malacañang, he issued a press release which included:

...I now leave Malacañang Palace, the seat of the presidency of this country, for the sake of peace and in order to begin the healing process of our nation. I leave the Palace of our people with gratitude for the opportunities given to me for service to our people...[52]

On January 18, 2008, Joseph Estrada's Pwersa ng Masang Pilipino (PMP) placed a full-page advertisement in Metro Manila newspapers, blaming EDSA 2 of having "inflicted a dent on Philippine democracy". Its featured clippings questioned the constitutionality of the revolution. The published featured clippings were taken from Time, New York Times, The Straits Times, Los Angeles Times, Washington Post, Asia Times Online, The Economist, and the International Herald Tribune. Former Supreme Court justice and Estrada appointee as chairwoman of the Philippine Charity Sweepstakes Office Cecilia Muñoz-Palma opined that EDSA 2 violated the 1987 Constitution.[53]