MANILA, Philippines -- The special division of the Sandiganbayan anti-graft court will hear the question of who should gain control of the P1.1-billion "Jose Velarde" account.

Sandiganbayan Special Division Clerk of Court Teresa Pabulayan said the hearing, the second to be conducted on the case, is scheduled on Friday, June 27.

The anti-graft court is seeking control over the Velarde assets under its decision on September 12, 2007 convicting former president Joseph Estrada of plunder. The court said the account contained ill-gotten wealth amassed by Estrada and ordered it forfeited in favor of the government.

However, Equitable PCI-Bank, now Banco de Oro-EPCI, has told the court there is an existing lien on the Velarde assets by the Bureau of Internal Revenue (BIR) and a separate claim by the Wellex Group of Companies of businessman William Gatchalian.

The BIR, in the memorandum it submitted, said the Sandiganbayan should validate the writ of constructive destraint it has imposed over the Velarde assets. A destraint order is imposed on properties to ensure recovery of assets by the aggrieved party, in this case, the BIR.

The counsel for the BIR said the write of destraint would enable the agency to collect some P1.8 billion in income tax deficiencies for taxable year 1999 from Estrada and his wife, former senator Luisita "Loi" Ejercito-Estrada, from Banco de Oro, where the Jose Velarde account is deposited.

At the same time, the Wellex Group Inc. is also claiming the money.

The assets held in trust with the bank are a promissory note and a chattel mortgage worth P500-million; 450 million shares in Waterfront Philippines; 300 million shares in Wellex Industries; and a common trust fund investment worth P95.759-million.