MANILA—Allies of President Arroyo forced the government to approve a telecommunications contract that would have led to US$130 million in kickbacks, a Senate hearing was told yesterday.
Rodolfo Lozada Jr., an electronics engineer brought in to assess the national broadband deal, told the inquiry he was told to reduce the kickbacks to President Arroyo’s allies and to “moderate their greed.”
The $329-million contract won by Chinese firm ZTE has since been scrapped amid allegations of bribery and corruption involving senior government officials and the President’s husband, lawyer Jose Miguel Arroyo.
Lozada, often wiping tears from his eyes, told the inquiry how he feared for his life.
The fallout from the scandal has cost Rep. Jose de Venecia, a former Arroyo ally, his seat as Speaker of the House of Representatives and seen the resignation of the chairman of the elections commission, Benjamin Abalos, who allegedly brokered the deal.
‘Protect it’
Lozada said that Abalos, a close friend of the President’s husband, demanded the contract be awarded to the Chinese.
“The trouble started when Abalos came to me to sell the ZTE proposal in September 2006,” Lozada said under oath. He said Abalos had told him, “You have to protect our $130 million.”
“I warned him that would stick out but we might be able to get 65 (million dollars),” Lozada said.
Abalos also offered about $5 million to then Economic Planning Secretary Romulo Neri, who eventually approved the contract, Lozada alleged.
He said Neri told him to force Arroyo’s allies to “moderate their greed.”
Lozada said that Neri also instructed him not to involve the First Gentleman in the issue.
Malacañang functionary Medy Poblador allegedly relayed the order while he was in Hong Kong, where government authorities had sent him because “they couldn’t find a legal remedy to stop the Senate” from requiring him to appear before its inquiry.
While he was technical consultant for the NBN project, Lozada said that ZTE officials revealed to him they had advanced money to Abalos who, in turn, had told the witness that he would advance Neri’s supposed share from the agreement.
“Don’t worry, I’m not like the others. I will advance it already,” Lozada quoted Abalos as saying.
In his own earlier testimony before the Senate, Neri said that Abalos had offered him P200 million for his favorable endorsement of the NBN project.
De Venecia’s son Joey, who lost out to the Chinese last year, had previously told the Senate about alleged bribes and kickbacks and the roles of Abalos and Arroyo’s husband in the deal.
Threatened
The President’s husband denied the allegations.
Lozada said that when it initially appeared that the Chinese proposal would lose, Abalos called him and said: “Don’t ever show your face at Wack Wack (a central Manila golf course) or I will have you killed.”
The witness told the Senate he asked to be taken off the project evaluation team after that. “This is not worth risking my life for,” he said.
An official from the Chinese Embassy expressed concern over the allegations, saying that they “painted an unfair picture about how we transact business.”
Asked if there were any political groups or government officials who had influenced him to come to the Senate and testify, Lozada said it was “my own decision to come here; it’s my conscience’s decision.”
Senators investigating the NBN project controversy considered setting up a witness protection program for the Upper House.
‘Crying boy’
Sisters and priests were the ones who shielded Lozada this week, after unidentified men picked him up Tuesday once he arrived from Hong Kong. He was released Wednesday, amid clamor from his family and some senators.
Asked who he thought was involved in his abduction, Lozada identified Col. Paul Mascariñas, Environment Secretary Jose “Lito” Atienza, Neri and Philippine National Police Director General Avelino Razon Jr.
“We urge concerned groups and individuals to come together and help put up a legal defense and protection fund for Lozada,” Sen. Francis Pangilinan said.
Meanwhile, Chief Presidential Legal Adviser Sergio Apostol said that the justice department should investigate Lozada, after he admitted that he worked as a consultant for Neri on the NBN deal.
Apostol earlier dismissed Lozada’s testimony in the Senate as hearsay, adding that the revelations would not stand up in court. He branded Lozada as a “crying boy” after his emotional press conference at La Salle Greenhills early Thursday morning. (AFP/Sunnex)
