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  • Senate orders arrest of Neri, Lozada
     
    By Butch Fernandez and Recto Mercene
    Reporters

    AT least 16 senators signed separate arrest orders for former National Economic and Development Authority (Neda) chief Romulo Neri and his consultant Rodolfo Lozada to compel their appearance before the ongoing Senate inquiry into the controversial $330-million national broadband network project awarded—later scuttled—to the ZTE Corp. of China.

    Neri and Lozada were cited in contempt and warrants of arrest issued against them for ignoring formal summons to testify at the joint hearings of the blue-ribbon, trade and commerce and defense committees on the allegedly overpriced project aborted by Malacañang in the wake of a scandal implicating administration officials, including the President’s husband, Mike Arroyo.

    “Legally, we met all the requirements [needed to serve warrants on Neri and Lozada]; we have the support of majority of members of the three committees involved in the ZTE-broadband deal inquiry,”
    according to Sen. Alan Cayetano, chairman of the lead blue-ribbon committee.

    He confirmed that 16 senators signed the arrest order for Lozada who left for abroad early Wednesday morning, while 13 senators signed the order to arrest Neri.

    Besides Cayetano, those who signed the contempt citation and arrest orders were: Sen. Mar Roxas, who chairs the trade and commerce committee; Sen. Rodolfo Biazon, chairman of the defense committee; and Sens. Pia Cayetano-Sebastian, Juan Ponce Enrile, Francis Escudero, Richard Gordon, Gregorio Honasan, Bong Revilla, Noynoy Aquino, Panfilo Lacson, Jamby Madrigal, Loren Legarda and Senate Minority Leader Aquilino Pimentel Jr.

    After Senate President Manuel Villar affixed his signature, the contempt citation and arrest orders were transmitted to the Senate sergeant-at-arms for immediate implementation. It held Neri and Lozada liable for failure to appear and testify in the joint hearings despite personal notice and said their absence has “delayed, impeded and obstructed the inquiry into the subject reported irregularities.”

    Both Neri and Lozada were cited in contempt and ordered arrested and detained in the Office of the Senate sergeant-at-arms “until such time that they will appear and give their testimonies.”

    Senate President Villar ordered retired General Jose Balajadia, the Senate sergeant-at-arms, to carry out and implement the two orders and make a return within 24 hours from its enforcement.

    Lozada, chief executive officer of the state-run Philippine Forest Corp. (Philforest), took off for the United Kingdom via Hong Kong aboard Philippine Airlines flight PR300.

    The radio was filled with speculations that Lozada left in a hurry due to threats on his life.

    Lozada’s name was mentioned in a published report last weekend as the “surprise witness” in the ongoing investigation.

    Sources at the airport said Lozada showed up at the Centennial Terminal 2 at about 5 a.m. to take the 8 a.m. flight without any luggage except a carry-on bag.

    It was reported that Lozada is on an official travel, having been granted travel authority by Philforest and his travel papers signed by Maryanne Saring (not sure if I heard her surname right), the Undersecretary for Administration, Finance and Legal Departments.

    Lozada was to appear before the Senate probers at 3 p.m. Wednesday, together with Joey de Venecia III, the son of Speaker Jose de Venecia Jr., who blew the whistle on the cancelled contract.

    Lozada was allegedly present at some meetings attended by Neri, including one attended by Arroyo, but was not present during the Wack-Wack “back off” incident, according to Joey de Venecia.

    In a radio interview with Arnold Clavio and Ali Sotto, the young de Venecia said he talked to Lozada in an undisclosed place Tuesday evening where the latter told him of his reluctance to appear as a witness because of the threat to his life.

    “He [Lozada] told me, ‘Joey, I am tired, there is a death threat, I’m worried about my wife and my children.’”

    Because of Lozada’s absence, de Venecia said it would be pointless for him to proceed to the Senate to testify again, since his motive is only to corroborate what the former has to say as far as the broadband deal is concerned.  

     

    Mendoza’s appeal

    SECRETARY Leandro R. Mendoza of the Department of Transportation and Communications (DOTC) appealed to the Senate to conduct an “independent panel review” into the costing of the ZTE-national broadband network contract in connection with its investigation of the project.

    Mendoza made the appeal as he branded the report submitted by Joey de Venecia, losing bidder in the NBN project, as “biased” and without basis.  Mendoza said the de Venecia report “should not be given credence.”

    Mendoza made the request in a letter to Sen. Alan Cayetano, chairman of the Committee on Accountability of Public Officers and Investigations (blue ribbon).  As a telecommunications project, the proposed NBN network is under the supervision of the DOTC.

    Mendoza rejected as “a work of propaganda” the evaluation report on the ZTE-NBN project which was submitted by Joey de Venecia III, whose firm, Amsterdam Holdings. had lost the bidding for the project to ZTE Corp.  In the report, the de Venecia panel claimed the project requirements were “overpriced.”

    Based on a study conducted by Lorenzo G. Formoso III, assistant DOTC secretary for telecommunications, Mendoza dismissed the de Venecia evaluation report as biased and “totally unsupported by verifiable facts or sources, lacking the imprimatur of attributable and accountable experts … [and] solely a product of the author’s subjective perception or misperception.”

    The DOTC chief added that the de Venecia panel also gave “no firm quotations from integrators/suppliers, gave miscalculation of relevant figures, misapprehension of network design and outright misstatements.”

    The report lacked verifiable factual basis because it made its estimates by lump sum, while the valuation of ZTE was based on a detailed Bill of Quantity (BOQ) detailing the materials needed and specifying their costs, Mendoza said.

    “But the real fundamental and bad faith omission of [de Venecia’s] evaluation is its failure to state plainly that the price schedule was budgetary price subject to the assumption of network design, the final price subject to actual site survey,” said Mendoza.  This omission “is fatal as it renders the [report] meaningless for quantification and final pricing is to determined only at Design Freeze, in accordance with accepted government procurement activities.”

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