Sunday, July 27, 2008 Recto keeps hands off broadband mess
NEW National Economic and Development Authority (Neda) director general Ralph Recto on Saturday remained noncommittal to calls for him to release documents on the US$329.48-million national broadband network (NBN)-ZTE deal mess.
Recto particularly declined to speak on the report of the Investment Coordinating Council (ICC)-Neda on the project.
"I don't know, I've not been in Neda yet, I've not seen the report," he said in a radio interview.
The Senate had been asking for ICC-Neda documents, where the ICC supposedly wanted a build-operate-transfer (BOT) set-up for the NBN-ZTE project.
Also, the ICC reportedly sought a guarantee that the government will indeed benefit from building its own backbone instead of relying on private sector services.
But the deal eventually involved a loan with a government guarantee, once it went to China's ZTE Corp.
On the other hand, Recto said the issue of executive privilege - which the Palace had invoked in refusing to disclose further details about the deal - is still with the Supreme Court.
"The issue is up to the Supreme Court," Recto said.
Meanwhile, during the same interview, the Neda chief said he will study proposed alternatives to the value-added tax (VAT) when asked about the possibility of accommodating proposals to shift from VAT to a specific tax.
Recto, who authored the VAT law when he was a senator, also said he is considering changes in some "policy directions."
"Everything is possible, but I will have to take a look at the pros and cons of all these proposals," he said.
But he said this may not be as easy as it sounds, noting that such shifts especially VAT on oil may have an impact on small businesses that use fuel.
Still, Recto said that while he will listen to proposals from the legislative, he wants both executive and legislative branches to work on the issue.
"The executive should also listen to good proposals from the legislative branch," he said.
He said he will bring up with President Arroyo Gloria Macapagal-Arroyo some proposed changes in economic policies once he takes his oath and formally assumes his post on Monday.
He said he has already sent text messages to the President about his initial ideas. (JMR/Sunnex)
