July 20, 1998

Sir:

Pursuant to the provisions of existing laws, you are hereby appointed MEMBER, BOARD OF DIRECTORS, PHILIPPINE AMUSEMENT AND GAMING CORPORATION

(non-voting).

By virtue hereof, you may qualify and enter upon the performance of the duties of the office, furnishing this Office and the Civil Service Commission with copies of your oath of office.

(Sgd.)Joseph E. Estrada

CAPT. RUPINO F. PIMENTEL
Thru: The Chairman
Philippine Amusement and Gaming Corporation
Manila

PALACE SPY IN PAGCOR
By Sandra S. Aguinaldo

Source: MANILA TIMES, March 19, 1999, Vol. 40, No. 349

A spy.

This in effect, was the intended role of the former Navy Cart. Rufino Pimentel, older brother of First Lady Loi Ejercito, when President Estrada appointed him as a non-voting member of the Philippine Amusement and Gaming Corporation (Pagcor).

Presidential spokesman Fernando Barican yesterday justified the what lawmakers called nepotism on Estrada's part, saying the President "wants to make sure he receives all the information that is needed" about the P11 billion corporation."

According to Barican, it is the prerogative of the President to appoint "persons of his confidence" to one of his few earning government-owned corporations.

"If the President wants to put one or two or three more counterchecks in order to assure himself down the road that everything is in order, I don't think the President ought to be begrudged that," Barican said in his daily media briefing.

Pimentel, along with three others, were named by Estrada as non-voting members of the Pagcor board after he assumed office last year. Th3e four effectively padded the five -man board allowed by Pagcor charter.

Sen. Teofisto Guingona called the appointments a technical malversation of funds since each of the four non-voting board members is given a P70,000 monthly salary, per diem of P2,500 whenever Pagcor holds meetings and free hotel accommodation during inspection visits.

"You know, this is an P11-billion corporation...The President wants to make sure that everything is in order, so he can appoint confidential advisers in order to assure himself personally that everything is in order and that the Pagcor board also receives the correct policy direction from the Office of the President," Barican said.

To further stress that Pimentel is very much qualified for the "confidential" position. Barican cited the Presidential brother in laws "extensive military training."

Pimentel holds a degree in mechanical engineering. He is a retired Navy captain who trained with the Philippine Naval Training Command and the US Pacific Fleet Training Center in California.

"He is a respected member of the community and has the President's full trust and confidence," Barican added.

The presidential spokesman however clarified that Estrdada's appointment of four additional board members does not mean he doesn't trust anyone in the five regular Pagcor board members.