THE ACTIVITIES of JELP show a similar disregard for laws and procedures. As reported in a PCIJ story published in August, JELP is currently building 36 tony townhouses, to be sold at P6 to P7 million each, in a one-hectare lot in Antipolo. The clearing of the property began in 1999 and the project is now about 90 percent complete. The company, however, violated nearly every regulation in the book. It did not get a zoning clearance, submit a development plan, apply for an environmental clearance certificate, ask for a building permit or obtain a license to sell the units once they are finished.

JELP also flouted provisions of a Marcos-era law that says housing developments of its category should set aside 30 percent of their area as open spaces. Neither did it comply with a provision that requires real estate companies to invest 20 percent either of the land area developed or its equivalent value in low-cost housing.

One would think that the President, of all people, should make sure that the actions of his companies are in strict compliance with the law. According to the constitution, the President's primary responsibility is to "ensure that the laws be faithfully executed." The constitution also recognizes that given the powers of the President, there should be more severe restraints and checks on these powers. Thus, Article VII, Section 13 of the charter says that the president and the members of the Cabinet should strictly avoid conflicts of interest. They are also banned from participating in any business or being financially interested in any contract or franchise from the government. That is why these officials are required to divest themselves of their business holdings.

Estrada, however, has always shown an impatience with the niceties of the law. And true to form, the President, as far as corporate records show, has not bothered with divestment - at least not until this year and only as far as one of his companies is involved. This is one reason why the business involvements of the President and his family members tread on delicate ground. Many of these businesses - whether real estate development, restaurants or manufacturing - involve the acquisition of government permits and clearances and regulation by various state agencies. The Housing and Land Use Regulatory Board (HLURB), for example, the body tasked with policing real estate companies such as JELP, is directly under the Office of the President.

In addition, RA 6713, the Code of Conduct for Public Officials and Employees enjoins public officials to have a "modest lifestyle." As head of government, the President is expected to set the example.

It is obvious that Estrada's grasp of the responsibilities of the presidency is primitive. At the same time, however, he shows a keen appreciation of the perks of his position. Which may be why he does not bother to answer questions about his finances. He probably thinks he is above the law, and from the looks of it, he may be right. Take the JELP development in Antipolo. Although it had been warned as early as March 1999 by the Antipolo City Planning and Development Office that it had no clearance to develop the site, JELP never got around to obtaining the necessary permits. The Ombudsman's slowness in probing the discrepancies and missing entries in his statements of assets is another indication of the impunity that the President seems to enjoy.

It is possible that Estrada will get away with these infractions, as he always had in the past. But he sets a bad example. If the President does not comply with the laws of the land, who will?

Highlights of the PCIJ's Report on "The State of the President's Finances"

• Estrada's declared net worth of P35.8 million and net income of P2.3 million in 1999 cannot explain the extravagant lifestyle and varied business interests of his families. Altogether, Estrada and his wives and children are listed as shareholders of 66 companies. The assets of 14 companies alone are worth P600 million.
• Estrada did not declare in his statements of assets since 1987 his and his wife's shareholdings in 11 companies, including Millennium Cinema, Inc., formed in1999 and now among the country's top movie production outfits.
• Many of these businesses involve transactions with, and regulation by, government agencies. As such, they raise thorny conflict of interest issues for the President.
• The first two years of the Estrada presidency saw a burst of entrepreneurial energies among his families, who formed 11 new companies since 1998.
• Guia Gomez appears to be the most entrepreneurial of the President's wives; SEC records show 33 companies in which she is listed as a shareholder and incorporator. Her core businesses are real estate and trading. She owns at least seven real estate companies with combined authorized capital of P200 million.
• Several of Gomez's business partners are now in government. These include Julius Topacio, undersecretary of the Department of Interior and Local Government and assistant executive secretary for budget and corporate affairs; presidential assistant Rosario Yu, Lucio Tan's ex-secretary; former presidential assistant Cecilia Ejercito de Castro, Estrada's cousin who was implicated in a P200-million textbook scandal in 1999; presidential brother-in-law Raul de Guzman, the presidential adviser on development administration; Raul Roberto de Guzman, presidential assistant for environment and water; and Jose Fernando B. Camus, board member of the Bases Conversion Development Authority.
• Estrada's son, JV Ejercito, was a partner in a short-lived construction venture of Dante Tan and the other founders of BW Resources, which is currently being investigated for insider trading and stock manipulation. Ejercito's name is listed as shareholder in 18 companies. The assets of his construction firm, Buildworth, grew from P14 million in 1997 to P83.3 million in 1998.