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Suspension of 2 projects with China 'embarrassing' - DOJ chief
source : GMANews.TV   
Saturday, 22 September 2007 17:23
President Gloria Macapagal Arroyo's move to suspend two multi-million dollar projects with the Chinese government appeared as a political decision that must be handled with "utmost care and sensitivity" to avoid repercussions on the relationship between the Philippines and China, Acting Justice Secretary Agnes Devanadera told GMANews.TV on Saturday.

She said that the two projects with China were both "aboveboard," based on the legal review of the "processes that were undertaken," for the transactions. She said this only goes to show that the basis of Mrs Arroyo's decision to suspend the projects was not anchored on any legal problem.
Devanadera was referring to the $329.48-million National Broadband Network (NBN) project with Zhong Xing Telecommunications Equipment (ZTE) Corp and the Department of Education's $460-million Cyber Education project, which was still on the drawing board but will be funded through a loan from the Chinese government.

On Saturday, Trade and Industry Secretary Peter Favila announced that President Arroyo instructed him to suspend the two projects with China. Mrs Arroyo made the decision amid accusations that the projects were riddled with anomalies. The President's husband was also dragged into the scandal, along with Commission on Elections Chairman Banjamin Abalos Sr.

Devanadera said she was saddened by President Arroyo's decision because there was nothing wrong about the projects. She said she was also saddened by the country's loss of economic opportunity offered by China.

"Nalulungkot ako. Sumusuporta sila. Gustong gustong i-open ang coffers for us...Medyo embarrassing. Tingnan mo nangyayari, siguro ito ang gusto nating mangyari sa sarili natin" (I'm saddened by the suspension of the projects. The Chinese government is supporting the Philippines. They open their coffers for us. What happened was a bit embarrassing. Look what's happening to us, perhaps this is what we really what to happen to us)," she said.

She said diplomatic talks between the Philippines and China are definitely being made now. "But as to how, when and what, I can't tell."

Asked what would be the impact of Mrs Arroyo's decision on the Philippines relationship with China, Devanadera said: "If the President won't be able to come up with a Solomonic decision, I think this would be very embarrassing for our nation."

Malacañang did not fully explain the basis of Mrs Arroyo's directive, and only said that the Chinese government understood the President's move.

"On instructions of the President, Secretary Peter Favila conveyed to his counterpart the government's desire to suspend the implementation of the broadband deal," said Press Secretary Ignacio Bunye, in a statement posted on the Palace Web site.

"Minister Bo Xilai said his government understands and respects the decision of President Arroyo and will continue to support her and her programs, " Bunye added. - GMANews.TV
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