MANILA—A Cabinet official testified in a brewing kickbacks scandal yesterday that the country’s elections chief tried to bribe him to approve a Chinese company’s winning bid for a national broadband network.
The $330-million project has been suspended but President Arroyo said Tuesday she had ordered a discreet investigation and found allegations of bribery and overpricing unsubstantiated.
Romulo Neri, the former socioeconomic secretary and currently the commissioner for higher education, said at a third day of a Senate hearing that the head of the Commission on Elections, Benjamin Abalos, offered him P200 million to approve the Chinese bid for the project.
Abalos, testifying at the same tension-charged hearing, accused Neri of lying under oath.
Neri said he was shocked by Abalos’ bribe offer, which he said took place at a Manila golf club earlier this year, and informed President Arroyo about it over the phone.
“I said, ‘Chairman Abalos offered me P200 million for this.’ She told me, ‘Don’t accept it’,” Neri testified.
Neri said he understood the case was investigated, but did not know details.
Grilled by senators if he had discussed the project further with Arroyo, Neri invoked executive privilege, saying he could not divulge his conversations with the president.
Abalos, pressed about the issue, said he had no reason to offer a bribe to Neri because Neri’s office had the authority to approve the project, but not the contractor.
The latest scandal to hit the Arroyo administration has caused concern among investors and posed a fresh challenge to President, who has survived two coup attempts and two impeachment bids on allegations of corruption and cheating in the 2004 elections.
Denial
Amid fresh coup rumors, the military chief said last week some soldiers were disturbed by the bribery allegations but assured that any destabilization attempts have been neutralized.
Repeating his testimony of last week, Jose de Venecia III, founder of the losing Philippine bidder for the project, Amsterdam Holdings Inc., also accused Abalos of offering him $10 million to withdraw his proposal.
Abalos vehemently denied the allegations. He said it was de Venecia who was pursuing him in mid-December last year, at a time when the Chinese company had already been designated as contractor by the Chinese government. Abalos said de Venecia sought his help to establish contact with the Chinese company so that de Venecia could be become a partner.
‘Wasn’t there’
De Venecia had also implicated the president’s husband, Jose Miguel “Mike” Arroyo, saying he had told de Venecia to “back off” from the bidding.
A lawyer for Mike Arroyo, Jesus Santos, said Arroyo had only reminded de Venecia—the son of the speaker of the House—that as a relative of a government official, he should not get involved in government transactions.
Abalos said he had not heard of any such incident with Mike Arroyo, which supposedly took place in his presence.
The Supreme Court had halted the broadband deal pending a resolution of separate petitions by de Venecia and a provincial vice governor questioning the legality of the contract.
The Chinese company, Zhong Xing Telecommunication Equipment (ZTE) Corp., has expressed disappointment over the suspension but has denied any irregularities.
In yesterday’s hearing, Neri said the national broadband network project should be bid out to dispel allegations of overpricing.
“If I were President (Gloria Arroyo), I will have this (NBN deal) bid out,” Neri said during yesterday’s hearing at the Senate.
Abalos’ link to the deal spurred calls for his resignation. Nueva Vizcaya Rep. Carlos Padilla said Abalos should now resign or face impeachment in the light of Neri’s testimony that the election chief tried to bribe him.
Delicadeza
Bayan Muna Rep. Teodoro Casiño said Congress “has the goods” to impeach Abalos. Casiño said they have already coordinated with the House minority to prepare the impeachment complaint against Abalos for alleged bribery, graft and corruption, and betrayal of public trust.
He said Bayan Muna will endorse a civilian-initiated complaint against the Comelec official.
Makati Business Club executive director Alberto Lim said their organization supports the call for Abalos to resign. He said Abalos should have the “delicadeza” to resign from his post, considering the controversies engulfing his stay at the election body. (AP/ With Sunnex)
