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Ermita: NBN project remains, only ZTE deal junked
Written by GMANews.TV   
Wednesday, 03 October 2007 03:30
Although the $329.48 million deal with China’s Zhong Xing Telecommunications Equipment Corp. had been canceled, the Arroyo government may still pursue the National Broadband Network project.

Executive Secretary Eduardo Ermita, however, said it may not entail a renegotiation of the ZTE contract because it would only invite public outcry sparked by allegations of anomalies that attended the negotiations for the scrapped contract.

“The higher objective set for undertaking such a project, kung hindi man ZTE, siguro makahahanap ng pamamaraan siguro na similar project na ma-achieve ‘yang objective na ‘yan," he explained to reporters during his weekly press conference at the Palace.
 He said Malacanang is leaving up to the Ombudsman the investigation of allegations of bribery and other irregularities on the $329.48-million contract between the government and ZTE for the NBN project.

Ermita categorically said ZTE’s contract for the project has been canceled. He said he was not aware of the reasons behind the President’s decision. At one point, he said it “became politically advisable" for the President to come up with the decision to scrap the project.

However, he said there was no mention of the P26-billion Cyber-education project of the Department of Education (DepEd) with China.

“Kung naniniwala tayo na maayos ang (NBN) project na ‘yan, it is highly probable, why not…within the term of the President," the executive secretary said when sought to clarify if a new contract for the NBN project could still be forged.

He raised the possibility of negotiating with another country that could extend loans at concessional rate for such a project, avoiding the mistakes in the ZTE transaction.

Meantime, Ermita said all issues hurled against the controversial ZTE contract, including the outcome of the Senate investigation, would end up with the Ombudsman and Malacanang would rather leave it at that.

He said there are three pending complaints before the Office of the Ombudsman, one of which was filed by Nueva Viscaya Rep. Carlos Padilla, raising irregularities in the transaction.

Executive privilege invoked

If the Senate decides to go on with its investigation and invite Cabinet members, Ermita said the principle of “executive privilege" would still be invoked when the situation would call for it.

Reading a portion of the Supreme Court ruling on “executive privilege," he said this covers conversations and correspondence with the President, discussions in closed door Cabinet meetings, information between inter-government agencies prior to the conclusion of treaties.

“If we feel the condition is such that we have to invoke executive privilege, then we will invoke executive privilege," Ermita said. - GMANews.TV
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