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The ZTE cast of characters: Loser, husband, political foes and deputies
source : GMANews.TV   
Wednesday, 19 September 2007 03:45
It could well be a scandal waiting to happen.

The usual suspects, in a manner of speaking, are there: on one hand, a losing bidder and an opposition leader taking advantage of his parliamentary immunity through a fiery privilege speech; on the other, a host of powerful men and political lieutenants all connected to the President.

But what makes the national broadband network deal most disturbing are two firm facts.

For one, this is the second big controversy to link and drag down President Gloria Macapagal Arroyo and Commission on Elections Chairman Benjamin Abalos.
The first, of course, was the “Hello, Garci" wiretapping scandal, at the time in 2005 the most serious political crisis to visit the Arroyo administration.

For another, the national broadband network deal seems to be a harbinger of what could be an imminent decline of the supposedly formidable pro-Arroyo political coalition.

Abalos, supposedly the advocate of the winning bidder, is cast against fellow Lakas-CMD stalwart and Arroyo ally, Speaker Jose de Venecia Jr.

The speaker’s son, Jose “Joey" de Venecia III, heads the firm that lost the bid.


WHISTLEBLOWERS

Jose de Venecia III

- A son of House Speaker Jose de Venecia, he is the majority shareholder of Amsterdam Holdings Inc., one of the interested proponents of the NBN, that eventually lost the bid.

In a letter dated October 17, 2006, Secretary Romulo Neri, then director-general of the National Economic and Development Authority (NEDA) had conveyed his support for AHI’s proposal for the NBN. Neri had served earlier as head of the Congressional Planning and Budget Office (CPBO) under Joey’s dad, Speaker De Venecia.

- In a nine-page affidavit dated September 10, 2007, Joey de Venecia said Comelec Chairman Benjamin Abalos offered him $10 million “in exchange for AHI’s backing off and withdrawing completely from the NBN project." Abalos, he said, will be getting $130 million.

- Before a Senate hearing on September 18, 2007, Joey de Venecia said First Gentleman Jose Miguel Arroyo personally told him to “back off" from pursuing the NBN project.

- Speaker De Venecia is secretary-general of the ruling Lakas-CMD, while President Arroyo heads the KAMPI (Kabalikat ng Malayang Pilipino) party that is allied with Lakas-CMD.

Minority Leader Carlos Padilla (Lone District, Nueva Vizcaya)

- In a privilege speech on August 29, 2007, Padilla said Abalos helped ZTE bag the $329-million contract. He said that weeks before the contract was signed, Abalos played golf with ZTE executives in Mandaluyong City, where he once served as mayor. Padilla said ZTE paid for Abalos’s unofficial trips to China.

- It is not the first time Padilla had exposed an allegedly anomalous government deal. In February 2003, Padilla had delivered a privilege speech questioning the government’s importation of 600,000 metric tons of “rotten" rice from India. The P9.5-billion contract was won by Kishore Hemlani, who is said to be close to First Gentleman Jose Miguel Arroyo.


BROKERS?

First Gentleman Jose Miguel Arroyo

The NBN deal is at least the ninth major controversy to hound the First Gentleman, over the last six years of the Arroyo presidency.

He had also been implicated in the following transactions:

1. He allegedly received a P50-million bribe for the President to recall her veto of the franchise bills of the Philippine Communication Clearinghouse and APC Wireless Interface Network in 2001.

2. He allegedly used PCSO funds to bankroll the campaign of certain senatorial candidates in the 2001 elections and to bribe the media.

3. In 2003, his name surfaced when one of his friends, Kishore Hemlani figured in the contract involving the importation of P9.5 billion worth of rotten rice from India.

4. In 2003, Sen. Panfilo Lacson accused him of maintaining the secret "Jose Pidal" bank account to launder money.

5. He stayed in a $20,000-a-night MGM Grand Villa in Las Vegas, Nevada, during the Pacquiao-Morales fight in March 2005. Arroyo’s camp said the accommodation was complimentary and not paid for by public funds.

6. In April 2005, a police official accused him, his brother Rep. Ignacio “Iggy"Arroyo and son Rep. Jose Miguel Arroyo of receiving jueteng bribes. The First Gentleman denied this.

7. His close friend and fellow Makati Rotarian Agriculture Undersecretary Jocelyn “Joc-Joc" Bolante was accused of diverting agricultural funds to the 2004 electoral campaign of President Arroyo.

8. Then opposition Rep. Alan Peter Cayetano exposed in August 2006 that a member of the Arroyo family maintained banks accounts in Germany amounting to hundreds of millions of dollars. Mr Arroyo flew to Germany later to secure a certification from the bank to disprove Cayetano's claims.

Comelec Chairman Benjamin Abalos

- Abalos denied lobbying for the ZTE deal supposedly in exchange for money or sexual favors but admitted that he knows some ZTE officials, as they are golf buddies. Abalos acknowledged as well that he made four trips to China.

- Abalos was chair of the Comelec when it got embroiled in the “Hello, Garci" scandal — the alleged wiretapped conversations between President Arroyo and then Comelec Commissioner Virgilio Garcillano, on rigging the results of the 2004 elections.

- Abalos was Comelec chair when the poll body approved the anomalous P1.3-billion contract with the Mega Pacific Consortium for the purchase of automated counting machines. The Supreme Court voided the contract in January 2004.

- PCIJ reported that Abalos went on a spending spree shortly after assuming the Comelec chairmanship: he authorized a performance incentive pay equivalent to a month’s salary for the poll body’s 5,200 personnel and approved the purchase of seven new cars for all the commissioners.

DOTC Secretary Leandro Mendoza

- Mendoza and ZTE Corp. Vice President Yu Yong signed the US$329.5 million contract for an NBN on April 21, 2007. President Arroyo herself witnessed the signing in China. The deal is one of “five landmark economic agreements" between the Philippines and China.

- The Senate summoned Mendoza in September 2005 during a probe of the $503-million Northrail project funded by a loan from the Chinese government

- President Arroyo appointed Mendoza as chief of the Philippine National Police a few months after she assumed the presidency. He is a member of the PMA Class 1969.

- Soon after his police service stint, Mendoza was one of the retired generals appointed to government posts by Arroyo.


Former NEDA Director-General Romulo Neri

- Based on the draft minutes of the Special Joint ICC-Cabinet Committee and Technical Board meeting on March 26, 2007:

- Neri expressed concerns about the terms and conditions of the proposed loan agreement. He noted that the terms are not as friendly as the other government contracts with China such as the Northrail and Cyber Education Project and are “actually almost commercial."

- Neri pointed out that the government will not benefit much from the purported savings from Internet connection because the government does not have much Internet connection. “Neri said that the presentation of benefits focused more on the benefits of the government from the project, rather than on the advantages of having a single platform which can cater to the needs of multiple users."

- Neri asked how the Chinese company can provide 4G services when China itself is still struggling with 3G technology.

- Neri was concerned that the terms of the project may not be as the President wants. He twice said that the project should be discussed with the President again, especially regarding the loan terms and the benefits.

- Three days after the meeting, on March 29, 2007, the Neda Board approved the project evaluation report of the ICC on the NBN.

- Newsbreak, citing sources, reported that Abalos offered Neri P200 million in exchange for the approval of the contract. Newsbreak said Neri was removed from Neda two days after informing the President of the bribery attempt; “the President allegedly said he can forget the money but he should go ahead and approve the contract." Neri would not confirm or deny the alleged bribe.

- On July 27, 2007, Neri confirmed that he had been moved out of NEDA and transferred to the Commission on Higher Education. - GMA News Research/GMANews.TV
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