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  • IT BEGAN AND ENDED HERE
    B. Fernandez, M. Gonzalez, C. Jimenez
    Reporters

    SENATE probers looking into alleged anomalies in the aborted $329-million national broadband network (NBN) project awarded to Zhong Xing Telecommunications Equipment Co. Ltd. (ZTE) of China were asked to summon ZTE chairman Fu Yong, as well as commercial attaché Fan Yang of the Chinese Embassy in Manila, to shed light on the participation of the Chinese government in the controversial NBN-ZTE deal.

         Senate Minority Leader Aquilino Pimentel Jr. moved to invite the two Chinese officials after former Socioeconomic Planning chief Romulo Neri’s telecommunications consultant,Rodolfo Lozada Jr., testified that the ZTE contract to put up the broadband network was grossly overpriced, and that up to $130 million of the submitted project cost would go to former Commission on Elections (Comelec) chairman Benjamin Abalos as “commission.”

                    Abalos has vehemently denied the allegation, and his camp was reportedly mulling over the filing of a libel case over the claim.

                    Pimentel made the suggestion for the Senate blue-ribbon committee to subpoena ZTE  chairman Fu and commercial attaché Fan on the eve of Monday’s resumption of the marathon hearings.

                    Personalities who had nothing to do with the NBN-ZTE scandal but were dragged into the fray after Lozada claimed he was “abducted” by government

    agents on his return home from Hong Kong on February 5 have been summoned to attend as well the Monday hearing. They are Environment Secretary Lito Atienza, the boss of Lozada (Philippine Forest Corp., or PFC, where Lozada is chief is under the DENR); and National Police chief  Avelino Razon Jr.

                    Fan Yang, Senator Pimentel said, should shed his diplomatic immunity, if any. “If they refuse to appear before the Senate, the government should deport Fu and declare Fan persona  non grata.”

                    Pimentel recalled that the blue-ribbon committee, which is conducting the inquiry with the Committees on Trade and Commerce and on Defense, had issued an earlier invitation to Mr. Fu to give the ZTE’s side in the joint hearings, but process servers from the Office of the Senate Sergeant at Arms could not locate the Chinese businessman.

                    In Friday’s hearing, Lozada said the ZTE packaged the NBN deal out of their Hong Kong office, not in the Philippines. 

    Abalos’s role in focus

    Pimentel said probers are also keen on questioning both Fu Yong and Fan Yang about allegations that Abalos had already received a portion of his $130-million commission from ZTE “even before its project proposal was approved by the Philippine government.”

                    In his separate testimony at the Senate, businessman Jose de Venecia III, who represents losing bidder Amsterdam Holdings Corp., also testified that the former Comelec chairman had been brokering for the ZTE in exchange for a hefty commission.

                    According to Pimentel, the testimony given by Lozada at last week’s marathon hearing has bolstered the filing of graft and corruption charges against  Abalos for “brokering a grossly overpriced government project.”

                    Pimentel prodded Ombudsman Merceditas Gutierrez to go ahead with the criminal prosecution of Abalos even as he urged the chief graft prosecutor “not sleep on the case, as was done in the graft case filed against the former Comelec chief by the Akbayan party-list group last year.”

                    Lozada told the Senate that the NBN contract awarded to China’s ZTE was originally priced at $264 million, of which half or $130 million allegedly represented Abalos’ commission.

                    But Lozada, who evaluated the ZTE project proposal as a personal consultant of Neri, said he was shocked on learning that the cost of the contract had ballooned to $329 million when it was signed by Philippine and Chinese government officials in April 2007. 

    Ombudsman prodded

    “Lozada’s testimony affirms Neri’s testimony about the irregularities in the transaction and gives the Ombudsman enough ground to sue Abalos for graft. His resignation will not give him legal respite until he has a chance in court to clear his soiled name,” said Pimentel.

                    Lozada had also confirmed De Venecia’s allegation that Abalos dangled a P200-million bribe to Neri in exchange for the approval of the ZTE proposal by the Neda-Investment Coordination  Committee.

                    Pimentel said Lozada provided the “missing link” to the puzzle on why President Arroyo reversed her original decision to have the broadband project pursued through the build-operate-transfer (BOT) scheme in favor of the proposal being pushed by Abalos that would be funded by a government-guaranteed loan from China  Export-Import Bank. 

    ‘Watch Cha-cha’

    Meanwhile, Makati Mayor and United Opposition (UNO) president Jejomar  Binay on Sunday traced the origin of the NBN scandal to the May 2004 presidential election and the “transactional arrangements” made to ensure an Arroyo victory over opposition bet Fernando Poe Jr.

                    “The magnitude of the greed exposed by Jun Lozada is simply mind-boggling. What he has exposed is greed that is beyond moderation, for it is greed that is driven by arrogance. It is greed that feeds on the reciprocal arrangements entered into to ensure the victory of Mrs. Arroyo in 2004. It is favor given in exchange for favor asked,” he said.

                    The opposition had described the 2004 presidential elections as tainted by fraud and cheating, an allegation boosted by the recorded conversations between Mrs. Arroyo and former Comelec commissioner Virgilio Garcillano exposed in 2005.

                    Addressing officials of the PDP-Laban at the clubhouse of the Philippine Racing Commission, Binay called on the party to oppose any move to change the Constitution under the present administration. Binay is the party’s national president.

                    “Just imagine what would happen if Mrs. Arroyo succeeds in securing for herself a mandate to rule the Philippines forever and ever,” he said.

                    He cited persistent attempts by Arroyo allies to amend the Constitution either through a constituent assembly or people’s initiative. He added that the country should not discount reported plans to resort to martial law if only to achieve the objective of extending Mrs. Arroyo’s rule.

                    Binay dismissed observations that the Arroyo administration would eventually shun corruption and focus instead on governance in its remaining years in office. 

    DOJ probe serious

    Relatedly, Malacañang on Sunday denied allegations that the Department of Justice probe on the scrapped broadband network deal with ZTE is part of government efforts to discredit Lozada.

                    Deputy Presidential Spokesperson Lorelei Fajardo said in a statement that President Arroyo’s ordered investigation on the controversial deal is intended to pinpoint those who might have violated antigraft and procurement laws in relation to the project.

                    She also brushed aside the suspicion of Sen. Panfilo Lacson that Malacañang had furnished Sen. Miriam Santiago with incriminating information on Lozada during his stint as PFC president.

                    “Senator Santiago cannot be dictated on by anyone. Ours is a nation governed by laws, not by men,” Fajardo said.

                    She also took exception to the claim of opposition senators that Malacañang is doing a demolition job on Lozada. “When the opposition does a demolition job against the government, they say they are just  bringing out the truth. When the government  bares embarrassing  truths about the opposition, they call it a demolition job. We must tell people the truth about Lozada  so they will know what is really behind his accusations and claims,” Fajardo said.

                    In another statement coursed through Press Secretary Ignacio Bunye, Chief Presidential Counsel Sergio Apostol apologized to the Filipino-Chinese community for making an “unintended slur” against them while responding to Lozada’s claims linking the President’s husband, Jose Miguel Arroyo, to the ZTE deal.

                    Apostol had joked that the former should be deported for “making trouble” as a probinsiyanong Intsik, a phrase Lozada himself had earlier used to describe himself while testifying in the Senate hearing. Apostol’s joke irked some members of the Filipino-Chinese community.               

    Bishops weigh in

    The Catholic Bishops’ Conference of the Philippines (CBCP), meanwhile, said the public confession of former House Speaker Jose de Venecia Jr. and Lozada on the extent of corruption in government may be considered an act of God that may even salvage the country from long-term offenses against the common good.

                    In a statement Sunday, the CBCP through its president, Iloilo Archbishop Angel Lagdameo, praised Lozada and de Venecia for their courage to expose the “high level of graft and corruption that they knew all along and somehow have been involved in.”

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