JOSEPH ESTRADA AS PRESIDENT OF THE PHILIPPINES (1998-2001)

JOSEPH ESTRADA AS PRESIDENT

Joseph Estrada when he was a senator

Joseph "Erap" Estrada was elected president of the Philippines in May 1998 and served for 31 months until he was ousted after the People Power II protests in January 2001. In 1998 Estrada campaigned as a friend of the poor and often sang live songs during his rallies. He won by the largest margin in Philippine election history. He took 40 percent of the vote on a ballot with 11 other candidates. His nearest rival was U.S.-educated Senator Raul Roco with 14 percent of the vote. His populist touches appealed to the poor and disenfranchised. The other candidates were mostly members of the powerful, moneyed elite.

Estrada was the first president to deliver his inaugural address in Tagalog rather than English and the first to dispense with the traditional inaugural ball to cut costs. Estrada’s cabinet appointees included respected businessmen and scholars as well as a former Miss International beauty queen as the top tourism official and a former leftist guerilla as the head of agriculture department.

Estrada accomplished very little and what he did accomplish was overshadowed by his corruption scandals and impeachment proceedings. When he took office, Estrada’s ruling coalition controlled 80 percent of the Lower House and held a majority in the Senate. During rallies he sometimes sang with a 72-piece orchestra. A short ballad that he composed and sang was featured on a CD by the popular Philippine artist Erani Cuenco. In May 1999, Estrada failed to stop an execution of a man who raped his own daughter.

Estrada had many enemies in the ruling elite. One of Estrada's harshest critics was Cardinal Sin who believed Estrada’s loose morals set a bad example. Fights between Estrada and Robert Gordon, a developer at Subic Bay, made headlines. Filipino police stormed Gordon's office and smashed window to try and oust him.

Estrada was a big supporter of jailed Malaysian former deputy Prime Minister Anwar Ibrahim. He also condemned the Dutch government for harboring Philippines Communist leaders. On terrorism Estrada took a tough guy approach—like some of the characters in his films—towards Muslim insurgents. Before a major offensive in September 2000, he said, “Enough is enough...We will not allow kidnappers and lawless elements to mock our laws and control our lives.” Critics claimed his hard line exacerbated rather than helped the problem and poisoned progress that had been made through negotiations.

There was a sense of optimism when Joseph Estrada was elected. Investors shared this sense of hope and initially poured money into the Philippines but it didn’t take long for this optimism to evaporate. Foreign investors were turned off by cronyism, scandals and favoritism towards Philippines companies.

Economy Under Estrada

President Estrada with US President Bill Clinton in 2000

Estrada moved to tighten securities regulations, liberalize the trade of grains and privatize the electricity industry. His effort to change laws limiting foreign ownership of businesses to 40 percent was halted by his impeachment trial.

In the end Estrada proved to be a friend of big business. He revived the culture of corruption and was plagued by charges of cronyism. This was on top of inconsistent monetary policy, slow economic growth, and uncertainty brought about by terrorists and insurgencies. He said he was a friend of the poor yet he failed to launch one meaningful anti-poverty program. Most of his efforts consisted of parading around with movie stars that were reminiscent of what Imelda Marcos did. There also wasn’t much of an effort to pave roads, set up irrigations projects or build school or collect taxes to pay for them.

As Estrada became embroiled in scandal, the peso, the stock markets and confidence in the Philippines as a place to invest dropped as did his approval ratings dropped. Foreign companies like Philips Electronics and Johnson & Johnson pulled out of the Philippines. After his ouster in 2001 he left behind a huge budget deficit and debt payments that were double what the country sent on health, education and agriculture combined. The sick man of Asia was sicker than ever.

Estrada Charged with Corruption

Estrada served as Ramos’s vice president and enjoyed widespread popularity. Within a year after being elected Estrada’s popularity declined sharply amid allegations of cronyism and corruption and failure to remedy the problems of poverty and live up to promises of riches for all. On top of this, the economy tanked and war broke out with the Moro Islamic Liberation Front in central Mindanao. Once again, street rallies supported by Cardinal Sin and Corazon Aquino took place. Then, in 2000 Senate investigators accused Estrada of having accepted bribes from illegal gambling businesses. The House of Representatives impeached him but allies in the Senate managed to prevent his removal from office. In 2001, millions of Filipinos took to the streets and said 'enough'. Following the withdrawal of support by the armed forces, Estrada was forced out of office on January 20, 2001 and Vice-president, Gloria Macapagal-Arroyo (popularly called 'GMA') was sworn in as president.

Late in 2000, allegations emerged that Estrada had accepted millions of dollars in payoffs from illegal gambling operations. Estrada gave luxury cars to favorite senior bureaucrats and cut deals during all night majong games with his “midnight cabinet” cronies, which included some of Marcos’s cronies, gangsters and people involved in gambling and smuggling and other illicit trades. He kept four houses and helped friends who were notorious tax dodgers.

President Estrada and the First Lady share a light moment

Estrada was accused of profiting from trading stock for BW Resources, operator of an online bingo game, which shot up 5,000 percent and dropped just a quickly and triggered the Philippines’ largest stock scandal ever and almost caused the closure or the Philippines stock market.
Estrada was also accused of: 1) failing to pursue a $1 billion tax evasion case against tycoon Lucio Tan, a major campaign supporter; 2) taking a cut of ransom money paid to release Abu Sayyaf hostages; 3) laundering drug money through U.S., Canadian and Hong Kong banks with a former national police chief; and 4) taking a $20 million kickback form sale of a telephone company. He had many supporters in key places. The movie industry withdrew advertising from a newspaper that was critical of Estrada. But even so as the charges against him mounted his approval rating dropped from 65 percent in June 1999 to 21 percent in May 2000.

Estrada wanted to replace a popular illegal numbers game with a new legal game called two ball bingo. He gave the contract to a gambling crony, Charlie Ang, a move that would later force Estrada from office. One of Ang’s rival Gov. Luis Singsong, who ran an illegal numbers game threatened by two ball bingo, got his revenge by offering details of how Estrada received payoffs from gambling bosses.

Estrada Trial for Impeachment

In November 2000, Joseph Estrada was impeached by the House of Representatives on charges of graft. However, the Senate—where several of his allies held influence—triggered a political crisis in January 2001 when it refused to examine the president’s bank records. In the impeachment for trial Estrada was charged with embezzling state funds and taking kickbacks from illegal gambling bosses. The trial was launched after 70 members of Congress signed an impeachment complaint (no formal vote necessary) and began with prosecutors accusing Estrada of running “a criminal syndicate from the highest office in the land.” The trial was televised was conducted in the Senate building, which was ringed by more than 1,000 police officers and marines in riot gear. The judges for the trial received death threats. Three witnesses who testified against Estrada fled abroad after they received death threats. All of the Philippines was thrown into turmoil. Battles broke out between supporters and opponents of Estrada. The stock market and the peso dropped to record lows.

Provinces in which Estrada won in 1992, 1998 and 2010 national elections

The impeachment trial was triggered by allegations made in October 2000 by one of Estrada’s former drinking buddies, Provincial Governor Luis “Chavit” Singson, that he pocketed $12 million in kickbacks and embezzled government funds ($9 million in illegal gambling profits and $3 million skimmed from cigarette-tax revenues intended to help farmers). Singson said he made the revelation because Estrada was cutting him out of the gambling business. He testified at the trial, “I was the one who actually handed the money to President Estrada....This is the protection money.” he said he made the payments for more than two years, beginning almost immediately after Estrada became President. “I have known him for long time. He is greedy when it comes to money.” Estrada confirmed that he was offered a $4 million bribe from the man who accused him of accepting illegal gambling payoffs but said the money was “intact.”

Emma Lin, Singson’s private secretary, testified that she carried a back bag filled with 5 million pesos (about $100,000) to Malacanag Palace and handed it over to Estrada’s secretary. The prosecution displayed a check that they say Estrada signed as “Jose Velarde” to buy a $1.7 mansion for one of his mistresses. The mansion had a beauty parlor, a massage room and a white sand beach around a swimming pool with a wave-making machine.

As the trial progressed prosecutors focused on the huge amounts of money he amassed while in office. They claimed that Estrada kept at least $63.5 million in seven different bank accounts. Witnesses testified that he kept bank accounts under false names and profited from insider trading. He was also accusing of intervening in a murder case on behalf of a friend.

People Power II

Although he continued to enjoy strong backing from much of the poor Filipino majority, many political, business, and church leaders called for his resignation. In mid January 2001, senators acting as judges at the trial for impeachment decided by a vote of 11-10 not to open key bank documents that prosecutors said would prove Estrada’s corruption. This moved seemed to ensure that Estrada would ultimately be let off the hook. Ordinary Filipinos were outraged. They thought they trial was fixed and the Senators made their decision based on politics and favoritism to Estrada not on the merits of the case. People took the streets in protests that lasted for three days and was organized in part through text messaging led by the traditionally Manila moneyed elite.

More than 200,000 attended a rally at the historic Edsa Shrine in suburban Mandaluyong and more than a million people took to the streets across Manila. It was a festive affair with rock bands, speeches by Roman Catholic leaders, confetti, a mass rendition of the “Impossible Dream” and dancing through the night. The series of events that led to Estrada’s ouster was referred to as Edsa II, or People Power II, a nod to the first People Power Revolutions that ousted Marcos in 1986. EDSA is the Philippines’s main thoroughfare.

During the protests Estrada remained holed up in the presidential palace, with a few armed guard protecting him. His demands for a pardon, permission to remove large amounts of cash from the palace and five days to leave were all denied. The most serious violence during the protest occurred when Estrada’s supporters attacked the protesters with rocks and bottles.

Estrada Ousted as President and Imprisoned

As public demonstrations intensified and key cabinet members resigned, the Supreme Court of the Philippines removed Estrada from office and Arroyo was then sworn in as his successor. In April 2001, Estrada was formally indicted on corruption charges, and the following month his supporters attempted to storm the presidential palace in protest. [Source: Columbia Encyclopedia, 6th ed., Columbia University Press]

On January 20, most of Estrada’s Cabinet, the entire armed forces leadership and the whole national police withdrew their support of Estrada The pivotal moment came when Defense Secretary Orlando Mercado and the military chief Gen. Angelo Reyes told Estrada and that military and police were withdrawing their support. The Supreme Court issued an order stripping Estrada of his power. It reasoned that Estrada had lost his ability to govern after most of his Cabinet and senior military and police commanders withdrew their support.

After a last ditch attempt to call snap presidential elections, in which he said he would not participate, Estrada left the presidential palace but did not formally resign. Flanked by his wife and children, he boarded a barge and returned to his private mansion in suburban San Juan. Before he left Estrada said, “I have strong and serious doubts about the legality and constitutionality of [Arroyo] becoming president” but “I don not wish to prevent the restoration of unity and order in our civil society...I now leave for the sake of peace.”

After Estrada was ousted the government began an investigation of Estrada’s alleged economic plunder, a crime that carries the death penalty. He was barred from leaving the country and his bank accounts were frozen. In February 2001, the sealed records of the of the bank accounts at issue during the impeachment trial were opened. They included records of a number of multimillion dollar transactions, including four $9.6 million withdrawals under the name of Jose Velarde. In March, the Supreme Court rejected Estrada’s claim that he never resigned and was immune to criminal prosecution. A few weeks later his appeal was rejected.

In April 2001, Estrada became the first Philippine leader to be indicted. He was taken by helicopter to a special detention center and was jailed for without bail with his son, Jinggoy, who was the mayor of San Juan. Estrada was charged with accepting $82 million in payoffs and plundering the government. Many think the money he took was more likely between $300 million and $800 million. Estrada’s wife Luisa Ejercito ran for the Senate in May 2001 and won.

In April and May 2001, Estrada supporters, many of them poor people from Manila’s slums, then took to the streets for three days to show their disgust over Estrada’s imprisonment. By some estimates the crowds were as large as 70,000. Again Edsa was the rallying place. Some called the rally Edsa III. Estrada’s supporters were outraged by his mug shots being printed in newspapers and photographs of him being taken from his house and fingerprinted and reports that he was arrested with hundreds of armed police surrounding his house. Estrada supporters marched to Malacanang Palace and battled police. They advanced as far as Gate 7 of the palace, forcing Arroyo to call in the army. Four people, including two policemen, were killed, dozens were injured and more than 100 were arrested. Some members of the elite made fun of the protesters. One cell phone text message read: “Do you have a low I.Q.? Are you jobless? Foul-smelling? If you are, then go to Edsa. You have a rally there.”

Estrada Life in Prison and Military Hospitals

Estrada spent his first night in jail at the national police headquarters in Manila. The cell was 20 square meters in size and had a cot, a toilet, a corner desk but no television or telephone. He complained about the food. Later he was moved to a jail 60 kilometers south of Manila because of potential security risks cause by pro-Estrada supporters. Estrada and his son Jinggoy shared the same cell. Soon after they were imprisoned both men complained of minor health problems. Estrada said that his detention aggravated his bronchitis, arthritis and emphysema. He was moved to a military hospital in metropolitan Manila.

While in the hospital Estrada smoked Lucky Strikes and spent much of his time playing video games. When asked what his detention in the hospital was like Estrada said, “Very depressing. I watch TV, pray a lot, I never miss hearing mass, twice a week. My consolation is I know that many people pray with me.” Several guards that watched over at the hospital were fired after allowing him to hold a lavish Christmas party. In October 2003, Estrada was transferred to an army camp, with authorities citing an anti-government plot to help him escape.

In January 2005, Joseph Estrada traveled to Hong Kong for knee surgery, bringing his personal barber and staying in a luxury apartment for 19 days despite being under house arrest on corruption charges. Although Filipino doctors had said the procedure could have been performed locally, there was little public outrage over the trip or the lenient treatment he received from the Arroyo administration which had earlier allowed him to move from a police compound to his private villa. Upon returning to the Philippines, Estrada boldly declared that he would lead the country into a “new dawn” and unite the political opposition against Arroyo. His confident rhetoric, reminiscent of his film roles, highlighted for some Filipinos the shortcomings of People Power II—the 2001 uprising that removed him from office—and reflected broader disappointment with Arroyo’s leadership and unfulfilled promises.[Source: Carlos H. Conde, New York Times, January 20, 2005]

Estrada Under House Arrest

In 2005, after spending four years in detention—including two years in a veterans hospital—Joseph Estrada was transferred from an army camp to house arrest at his secluded vacation estate in Tanay, about 90 minutes north of Manila. The move came as a special anti-corruption court continued gathering evidence and conducting his trial. Writing in The Washington Post, Ellen Nakashima described how the former president, once known for his energetic and flamboyant style, now spent his days feeding ducks on his property and joking that he urged them to multiply. Reflecting on his fall from power, Estrada remarked on the dramatic shift “from president to prisoner.” [Source: Ellen Nakashima, Washington Post, June 14, 2005]

His 45-acre estate was far beyond the reach of the average Filipino, featuring a Spanish-tiled house with mahogany floors, a lagoon filled with exotic birds, a saloon, chapel, aviary, and corral. He raised pigs and even planned a museum dedicated to himself modeled after the ranch of his idol, Ronald Reagan, another actor-turned-president. Yet despite the comforts, his lifestyle had changed sharply. The lavish parties, high-stakes mah-jongg games, and extravagant feasts of his presidential years were gone. Instead, he lived more quietly, dining modestly and recovering from knee replacement surgery that left him with two titanium knees and a slight limp.

Estrada claimed that despite doing little beyond tending his ducks, his popularity ratings had risen, which he considered a personal consolation. Meanwhile, President Arroyo faced declining approval ratings and allegations of election fraud and corruption involving members of her family—charges she denied. Estrada openly took satisfaction in her political troubles. Although he said that detention had led him to pray more and become more reflective, he remained resentful toward those he blamed for his downfall, including the media, wealthy elites, the Supreme Court, Arroyo, and Catholic leader Jaime Sin, whom he bitterly criticized.

Estrada’s Corruption Trial After Leaving Office

The corruption trial of Estrada lasted six years from 2001-2007 before he was convicted of plunder and sentenced to life imprisonment in 2007, only to be pardoned him two weeks by then President Arroyo. Estrada was initially indicted on eight charges but later prosecutors dropped five of the charges—including 1) taking of bribes for illegal gambling syndicates, 2) pocketing million in excise taxes and 3) receiving large commissions from the purchase of two state pensions funds of shares in a property and gaming firm) so they could narrow their case against him, concentrating on three charges: 1) economic plunder, 2) perjury and 3) using on false names on bank accounts. The perjury charges were based in his claiming his net worth was around $700,000 when it was actually in the millions.

Estrada accused Arroyo, the Catholic Church and the business elite of conspiring t topple him. Among those who supported him were Imelda Marcos. Among those that criticized him were former presidents Aquino and Ramos and Cardinal Sin. In April 2002, Estrada refused to enter a plea. “As I said earlier,” he said. “I refuse to participate in these court proceedings, so I refuse to enter a plea.” He also predicted that his execution was “inevitable. “They have taken away my office. They have taken away my dignity. And they will take away my life,” he said.

The crux of the case against Estrada focused on charges that he amassed a fortune of nearly $75 million from gambling kickbacks and skimmed tobacco taxes. "Those are all trumped-up charges," he told the Washington Post. "I haven't taken a single cent from government coffers." The prosecution presented 76 witnesses and more than 1,500 documents as evidence. Estrada himself was the defence's 79th and final witness.

Estrada Denies Embezzling $45 million and Receiving Bags of Cash as Kickbacks

In March 2006, Estrada denied all corruption charges as he took the stand in his embezzlement trial. Joseph Estrada insisted that accusations he had siphoned off $45 million from illegal gambling operations and received tobacco tax kickbacks were fabricated. He also rejected claims that he had underreported his assets, maintaining that the charges were politically motivated. Appearing in court wearing a barong, a Philippine flag pin, and his trademark wristband, he said he welcomed the chance to defend himself after being “convicted in the streets” during his impeachment. [Source: John Aglionby, The Guardian, March 23, 2006; PCIJ Blog, March 22, 2006]

Estrada was accompanied to the anti-corruption court in Quezon City by his wife, his daughter, and his two sons—one of whom was a co-defendant in the case. Addressing the court, Estrada said he had mixed emotions but welcomed the chance to present his side, arguing that he had been denied the opportunity to defend himself during his impeachment trial and had instead been “convicted in the streets.” "These are trumped-up charges, a frame-up...a pack of lies,"Estrada said. "I don't have the conscience to steal money intended for farmers."

Estrada denied accusations by Ilocos Sur governor Chavit Singson in 2000 that he received kickbacks of up to P130 million from tobacco excise tax while in office. During the impeachment trial, Singson said P130 million went straight to Estrada and his family. Singson presented certificates from the Landbank as proof that money went to three persons: Alma Alfaro, Delia Rajas, and Eleuterio Tan. Singson said it was around the end of August 1998 when the money was withdrawn from the bank by the three persons, as instructed by Charlie “Atong” Ang, a business associate and close friend of Estrada. Estrada denied the story, saying security at his residence would have made such a delivery impossible and disputing Singson’s account of their long friendship, describing him only as a political ally rather than a close confidant.

Hundreds of Estrada’s supporters gathered near the courthouse in Quezon City, though heavy police presence kept order. While Estrada testified that the case was politically driven, a spokesperson for Arroyo stated that due process had been observed. The anti-graft court, Sandiganbayan, adjourned after the session, with proceedings expected to continue for weeks and the trial likely to last several more months.

Estrada Given Life Sentence but Then Pardoned One Month Later

In September 2007, Estrada was sentenced to life in prison after being found guilty of corruption. He was under house arrest at the time. In October 2007 he was granted a pardon by President Macapagal-Arroyo, effectively ending his imprisonment. The Guardian reported: “The former action film star was charged with four counts of corruption, involving diversion of funds amounting to about 4 billion pesos ($75 million), Reuters reported. Lawyers said he was found guilty on two counts of receiving payoffs from illegal gambling and taking commissions in the sale of shares to government pension funds. He was cleared of the other two charges of maintaining a bank account in a false name and of diverting tobacco taxes to his own use. [Source: James Sturcke and agencies. The Guardian, September 12, 2007]

After a six-year trial, Estrada was convicted of graft in a verdict that was broadcast live on television. Fears that the decision would trigger violent protests by his poor supporters did not materialize. Joseph Estrada was not immediately sent to prison but was ordered to remain under house arrest in his villa while he prepared to appeal. He denounced the ruling as a political decision and a “kangaroo court.” Prosecutors had accused him of hiding assets and purchasing mansions and vacation homes for his mistresses. The court also ordered him to forfeit a mansion and more than 731 million pesos in bank deposits. His son, Jinggoy Estrada, and lawyer Eduardo Serapio were acquitted. Estrada and his allies claimed the case was a political vendetta orchestrated by President Arroyo.

About six weeks later, Arroyo granted Estrada a presidential pardon, freeing him after six and a half years in detention. Arroyo described the move as an effort to heal deep political divisions, though critics viewed its timing with skepticism as she faced her own political challenges. Estrada, once a fierce critic of Arroyo, struck a conciliatory tone, thanked her for the pardon, expressed a desire to live as a private citizen, and urged his supporters to back government anti-poverty programs. While the pardon restored his civil and political rights, the court’s order forfeiting his villa and more than $15.5 million in savings remained in effect. Upon his release, Estrada said he planned to visit his hospitalized 102-year-old mother as supporters prepared a celebratory welcome. [Source: Associated Press, October 27, 2007]

Image Sources: Wikimedia Commons

Text Sources: “Encyclopedia of World Cultures Volume 5: East/Southeast Asia:” edited by Paul Hockings, 1993; National Geographic, Live Science, Philippines Department of Tourism, Metropolitan Museum of Art, Natural History magazine, New York Times, Washington Post, Los Angeles Times, Smithsonian magazine, Encyclopedia.com, Times of London, Library of Congress, The Conversation, The New Yorker, Time, BBC, CNN, Reuters, Associated Press, AFP, Lonely Planet Guides, Google AI, Wikipedia, The Guardian and various websites, books and other publications.

Last updated February 2026