The Philippine peso dipped into uncharted waters when it reached an intraday weakness of Ps52.950 ($1.01) – another historic low for the embattled currency.
The peso finally closed at 52.780 to the US dollar with a volume of $158 million.
This disheartening performance of the peso follows in the wake of the debilitating testimonies of two high profile finance executives who abandoned the Erap presidency precisely for the corrupt acts testified upon by them in the ongoing first-ever impeachment trial of an Asian impeachment.
“I made money on BW”
The first to testify was Edgardo Espiritu, a self-confessed close friend of President Estrada who started out as one of the President’s campaign leaders and eventually became the Finance Secretary of the country.
Testifying in the impeachment court last week, Espiritu revealed attempts by Erap’s Executive Secretary and other high officials to stop him from testifying. Even the President himself phoned him while he was in the airport lounge to enquire as to whether he was testifying.
Espiritu revealed explosive events that directly damaged the President. Among other things, he testified that President Estrada had declared that he had made much money on the meteoric rise of BW’s stock, a gaming company that shot from about Ps3 to about Ps130 in a span of seven months. This is disallowed under the Philippines constitution.
“Clear Dante Tan”
The other senior finance official who gave damaging evidence against President Estrada was former Securities and Exchange Commission Perfecto Yasay, Jr. He recalled that Estrada specifically instructed him to “clear Dante Tan” over the phone.
The instruction was not a hint or circumlocution. It was a direct statement to clear Dante Tan. Tan is the majority owner of BW. Espiritu testified that Tan claimed to him that President Estrada is a part owner of BW.
If admitted as the truth, the President committed obstruction of justice.
Espiritu testified last Thursday and Friday, while Yasay’s testimony ended Monday.
Economy suffers
The economy continues to slide given the absence of foreign investments, the slowdown of industry production, and the uncertainty of the political situation.
