Estrada lauds dubious tycoon

Tue, 12 Jan 1999 | Source: AP

MANILA (AP): President Joseph Estrada called a business tycoon accused of massive tax evasion a hero on Monday for continuing to run Philippine Airlines despite massive financial losses.

Estrada said Lucio Tan, PAL's chairman and chief stockholder, has been losing at least 25 million pesos (US$658,000) a day but continued running the Philippine flag carrier in response to an appeal from the president.

Tan, one of wealthiest men in the Philippines, is a former close associate of the late dictator Ferdinand Marcos. He is also close to Estrada and gave the former movie star financial backing in last year's presidential election.

Last month, the Department of Justice charged Tan, his flagship company Fortune Tobacco Corp. and nine dummy companies with defrauding the government of 25.6 billion pesos ($673 million) in taxes between 1990 and 1992. Tan denies the allegations.

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