On Thursday, President Estrada said former Senate President Jovito Salonga was ''senile'' and ''out of his mind.'' Yesterday, Salonga described Mr. Estrada as ''hopelessly ignorant.''

The word war is a result of Salonga's questioning the validity of the escrow agreements involving the Marcoses' $580-million Swiss deposit.

An annoyed Mr. Estrada rejected Salonga's proposal that the ''spurious and illusory'' escrow agreements be replaced so as to strengthen the government's claim to the $580 million.

''Up to now, I have no knowledge of any escrow or what they claim are foundations that we put up. I don't know what Senator Salonga is talking about,'' Mr. Estrada had told reporters.

In response, Salonga issued a statement which read in part: ''The President might have confused escrow with his escort service in Malacañang, and he mistook the dummy foundations of Marcos with the foundation Erap knows so well--the facial cosmetic applied to the skin as the first layer of the heavy makeup of movie actors and actresses, or the undergarment or corset of women.

''Knowing him before he became President, I can understand and forgive.''

Salonga, the first chair of the Presidential Commission on Good Government, said he was surprised that Mr. Estrada insulted him for making a ''common sense'' suggestion.

He had suggested that Mr. Estrada get the Swiss government or its agent to sign the escrow agreements, to make these binding.

''As long as my suggestions are for the people's benefit, I do not mind being described by the President as senile,'' Salonga said.

''It is better to be senile than for an official to be hopelessly ignorant--that is, not to know that he does not know.''

No actual transfer

Salonga earlier said no actual transfer of funds from the Swiss banks to the Philippine National Bank had taken place.

He said the money was still in the name of six Marcos dummy firms, making them the rightful claimant to the $580 million.

''Contrary to what (Mr. Estrada) claims, I have not accused him of putting up the foundations I specified in my letter to (PCGG Chair Magdangal) Elma,'' Salonga said. ''Unless of course, President Estrada wants to be identified with the fraudulent Marcos foundations.''

Strangely, Salonga said, the two public officials who had a lot of explaining to do for signing the escrow agreements were keeping quiet.

He was referring to Magtanggol Gunigundo, former PCGG chair, and Jose Ferro, PNB president and trust officer, who drew up the escrow agreements on Aug. 14, 1995.

Salonga pointed out that only the Swiss government which had been in control of the funds, and not then PCGG chief Gunigundo, could validly enter into an escrow agreement with the PNB.

Even Elma, to whom Salonga said he was grateful for advising the PNB to release the escrow documents to him, had been keeping mum.

''I suggested, for the sake of our oppressed, exploited people, that the defect in the agreements can be remedied by asking the Swiss government or its agent, Mr. Peter Cosandey, to sign a revised version of the escrow agreements, striking out the Marcos foundations,'' Salonga said.

Salonga earlier cited an escrow report showing that the $580 million was placed in the name of six Marcos foundations last June 30, when Mr. Estrada took his oath as President.

This was confirmed by the Sandiganbayan, which expressed surprise that the money remained in the name of 12, not six, dummy firms.

Sandigan order

 The Sandiganbayan has ordered the Office of the Solicitor General to show proof that the $580 million had been deposited with the PNB.

In a four-page resolution, Presiding Justice Francis Garchitorena also asked the OSG to explain why the Marcos money remained in the name of the 12 dummy firms.

The resolution, adopted by Garchitorena and Associate Justices Catalino Castañeda Jr. and Anacleto Badoy Jr., was issued as early as Sept. 8, 1998.

Solicitor General Ricardo Galvez has yet to respond.

The resolution cited the same escrow agreements that Salonga had questioned.

''The amount in escrow belonging to each of the 12 foundations is not stated anywhere in the escrow agreements, nor is the total amount represented by all the sums in escrow,'' the justices noted.

Galvez, in compliance with the order to submit a report on the conditions set out in the escrow agreements for the transfer of the funds to the PNB, named the 12 dummy firms as Aguamina, Roselys, Arelma, Avertina, Vibur, Caesar, Palmy, Pretorian, Maler Establishment, Maler Foundation, Gladiator Establishment and Gladiator Foundation.

The justices said that since the funds in the name of the foundations were the subject of the litigation, the money should be ''under the disposition'' of the Sandiganbayan alone.

Negotiations

While this was going on, Ilocos Norte Gov. Ferdinand Marcos Jr., only son of the late dictator, has warned the President that negotiations with the Marcoses were imperative.

''It is only through negotiations that the money will be released to whoever parties are involved, and the President has only two choices--either he negotiates for a settlement of this issue or he does nothing because he has no other option,'' Marcos Jr. said in a statement.

Marcos Jr. confirmed that his family and Mr. Estrada were ''in the thick of negotiations.''

He also accused those objecting to the compromise settlement between the Marcoses and the government of ''stalling'' the release of the money.

By Christine Herrera

Philippine Daily Inquirer, January 30, 1999