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October 9, 2000 

MANILA (AP) - Accusations by a Philippine governor that President Joseph Estrada regularly received money from illegal gambling operations are groundless and could seriously hurt the Philippines, a government spokesman said Sunday.

Press Undersecretary Mike Toledo said the government would wait for Governor Luis Singson of northern Ilocos Sur province to produce evidence of the allegations as promised on Monday before issuing a reply.

The accusations were the most serious yet against Estrada, who assumed the presidency in 1998, and have set off discussions about possible impeachment.

Toledo said Estrada's administration was concerned because the allegations "hit into the integrity of the administration and the presidency" and "could undermine the integrity of the republic."

The accusations could distract the government at a time when it is hurdling mounting economic problems and surging oil prices, Toledo told a news briefing.

Singson has said he would release documents on Monday supporting his allegations against Estrada. He said he is seeking immunity from prosecution from the government in exchange for his testimony in case he would be investigated.

Although allegations of cronyism and corruption have long dogged Estrada's administration, this is the first time that a high public official has claimed that Estrada has personally lined his pockets.

Estrada called the accusations a "black propaganda and smear campaign."

Senate minority leader Teofisto Guingona said in a speech last week that Singson claimed he had personally delivered around 10 million pesos (dlrs 215,000) a month to Estrada from a popular illegal numbers game known as "jueteng."

Philippine newspapers have linked Singson to illegal jueteng games in his province and have said the influential governor is at odds with one of Estrada's friends, Charlie Ang, who is promoting legalized jueteng called "Bingo 2-Ball."

The government, through its gambling agency, the Philippine Amusement and Gaming Corp., launched the "Bingo 2-Ball" last month in an effort to eradicate jueteng, raise government revenues and stop payoffs by jueteng operators to military, police and government officials.

Ang is a consultant of the Philippine Amusement and Gaming Corp., or Pagcor, and also heads a company which has a contract with the government to collect proceeds of "Bingo 2-Ball."

Estrada ordered Pagcor officials on Sunday terminate its contract with Ang's company and indefinitely suspend "Bingo 2-Ball" operations nationwide to allow a government review of its profitability and effectivity against jueteng.

Toledo said Estrada was not trying to placate Singson.

"No, this is not in any way meant to placate or appease anyone," he said.

Financial markets were unruffled by the potentially explosive allegations made against Estrada last week.

Analysts said Estrada's already poor image among investors meant the bribery claims weren't a big surprise to a market long used to allegations of corruption and cronyism swirling around the government.