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    ZTE denies bribe, feels frustrated
     
    By Lenie Lectura and Mia Gonzalez
    Reporters

    ZTE Corp., China’s biggest publicly listed telecommunications company, on Tuesday said it did not bribe or solicit services from anyone just so its multimillion dollar contract for the national broadband network (NBN) project would be accepted by the government.

    Howard Xue, ZTE global marketing director and chief information technology consultant, said in an e-mail that he feels “frustrated” that even if he speaks up, the truth, he said, “still cannot reach the public.”

    “We tried to let the public know the facts about NBN and ZTE. All our voices were covered by more eye-catching stories full of misleading information. The government, including the business groups, are misled on our project,” said Xue.

    For one, Xue said the allegation about ZTE bribery to Chairman Benjamin Abalos of the Commission on Elections and other government officials are not true.

    “ZTE has completed numerous bigger projects around the world. We have proposed the best price, financing and technical proposal, and we are confident of beating all our competitors, so there is absolutely no need to bribe anybody to get the project,” he said.

    Xue said he would like to discuss further about the malicious attacks against ZTE, including its supposed relation with Abalos, but can not, citing the subjudice rule.  “Unfortunately, because of this subjudice rule, we can not answer these in detail. We shall clarify these issues through proper legal procedures and before the proper forum,” said Xue.

    He said Jose de Venecia III, the son of Speaker Jose de Venecia Jr., should likewise do the same.

    Incidentally, Xue said a company, which the younger de Venecia used to partly own, owed ZTE $10 million and has also $3.6 million in overdue charges. During the time when de Venecia chaired the board, ZTE signed a supply contract with the company, which Xue did not identify, and delivered all the equipment and the services in accordance with the contract.

    Yet, he added, de Venecia sold his shares to new investors, “leaving with them the financial burden. Later on, we have heard that he wanted to buy back the company for the NBN project. The stockholders, however, refused his request,” said Xue.

    De Venecia, who heads losing project proponent Amsterdam Holdings Inc. (AHI), could not possibly win the broadband project because his company lacks the financial and technical resources, Xue said.

    “So, the question the public should ask is, can a start-up company—without capital and track record—win the bid for the NBN project?” asked the Chinese official.

    He said AHI’s proposal is disadvantageous to the Philippine government because it covers only the first-, second- and some third-class cities and municipalities. If it were to expand its coverage nationwide, the Transportation department, added Xue, estimated that AHI’s proposal could even amount to $1 billion.

    Further, there is no clear financing solution yet presented by AHI. “AHI’s proposal is mainly focused on building a new mobile network to compete with current operators to get revenue and profit. It has no contribution to other government goals,” added Xue.

    The deal to supply a broadband network linking Philippine government agencies by ZTE, signed in April, was stopped however last week by the Supreme Court after lawmakers said the contract was overpriced.

    Meanwhile, President Arroyo on Tuesday ordered Transportation Secretary Leandro Mendoza to appear before the Supreme Court and explain the government’s national broadband network (NBN) project.

    Mrs. Arroyo announced the directive in her opening statement at the National Economic and Development Authority (Neda) Board meeting, shortly after businessman Jose de Venecia III accused her husband, Jose Miguel Arroyo, of involvement in the ZTE deal.

    “I am ordering Secretary Mendoza to appear before the Supreme Court and explain the national broadband network case. The judicial process does not involve politics and is purely based on evidence. It can fully weigh whether the deal is lawful and for the good of the country,” she said.

    The President, who made no reference to allegations against her husband, added that the government is “also prepared to cooperate in the Ombudsman’s investigation into allegations of graft pending there.”

    Nacionalista Party Rep. Carlos Padilla of Nueva Vizcaya earlier filed graft charges before the Ombudsman against Mendoza, Transportation Assistant Secretaries Lorenzo Formosa and Elmer Soneja, and ZTE officials.

    The President’s husband’s spokesman, lawyer Jesus Santos, said in a statement that Mr. Arroyo “does not, and will never interfere, in any government transaction.”

    “I therefore appeal to detractors of the government to spare the President’s husband from their rumor mills and black propaganda. The only thing he wants now is help the poor and the sick in his own little way to and live life in peace,” Santos said.

    He also stressed that Arroyo’s trip to Spain on Monday was pre-planned even before his major heart surgery in April and was not especially timed to dodge the Senate inquiry on the ZTE deal.

    Santos noted that before Arroyo’s departure, his name “has not been mentioned at anytime on the ZTE controversy, neither has he been invited to the Senate inquiry. So to even insinuate that he is trying to avoid the issue is totally unfair.”

    He said that Arroyo’s doctors had approved his trip as he is already fit to travel, and had even accompanied the President in the 15th Asia-Pacific Economic Cooperation Leaders’ Meeting in Sydney, Australia earlier this month. 

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