THE Bureau of Internal Revenue has refused to lift a seven-year-old freeze order on some P1.1 billion cash and stock assets at the Banco de Oro under the name of Jose Velarde, frustrating efforts by the Sandiganbayan to forfeit them in favor of the government.

Ironically, the BIR also cited "government interest" in preventing the graft court from garnishing the Velarde assets which the Special Division has already declared part of the ill-gotten wealth of former President Joseph Estrada.

Corazon C. Pangcog, BIR OIC-Assistant Commissioner for Collection Service, advised lawyer Gerardo I. Banzon, head of BDO's Legal Advisory and Research Department, that any disposition of the Velarde account would have to await the completion of the BIR's investigation on the same.

The freeze order, or constructive destraint, on the Velarde deposits was made in January 2001 in order to enable the BIR to collect on taxes that the account owner had left unpaid. Pangcog offered no explanation in her letter to BDO why the BIR has not completed its investigation in more than seven years or any time frame when the inquiry is expected to be finished.

"(P)lease be informed that Jose Velarde account is still under investigation by the National Investigation Division (NID) of this bureau. Thus, in order to safeguard the interest of the government, the subject constructive destraint. shall continue to have force and effect until the ongoing investigation. is finally terminated," Pangcog said in her letter dated Jan. 28, 2008.

Sandiganbayan chief sheriff Edgardo Urieta said he will forward the BIR letter, copy furnished them by BDO, to the magistrates of the Special Division for guidance on further action to be taken by his office.

The court has already written the BIR twice inquiring about the status of the destraint order but the bureau has so far failed to respond. "Hindi puwedeng ganito, napaka-indefinite. They will have some more explaining to do before the court," Urieta said.

The stock investments and trust deposits in the Velarde account consists of P500 million in promissory notes, Waterfront shares worth P652.5 million and a common trust fund in the amount of P95.76 million.

The government is hoping to charge from the said amounts the unsatisfied balance of P535 million in the forfeiture judgment against Estrada after his conviction for plunder on Sept. 12, 2007. - Peter J. G. Tabingo