|
Friday, September 21, 2007
Senator calls for scrapping of broadband deal
MANILA -- The chairman of the Senate committee investigating the controversial National Broadband Network (NBN) project called on President Gloria Macapagal-Arroyo Thursday to scrap the deal with China's ZTE Corporation.
Senator Manuel "Mar" Roxas II said the Philippines can still back out because it has not yet obtained from China the US$329 million loan, conditioned upon the signing of a contract with ZTE, to fund the NBN project.
Join forum on Sandiganbayan's guilty verdict on Estrada plunder case. Post comments here.
He cited three points to show the deal fails in major areas: no urgent need for national broadband network, lack of information on what the government is buying, and insufficient studies and disregard of proper bidding procedures.
Roxas, chairman of the Senate committee on trade, said he welcomes the participation of Cabinet officials in joint hearing but stressed this did not make the broadband deal with ZTE any less flawed.
Transportation Secretary insisted during Thursday's joint hearing of the Senate committees on trade and accountability of public officers and investigations that the contract awarded to ZTE was the best package.
ZTE, in its proposal, will build a nationwide system that can serve the National Government and local governments down to the sixth-class municipalities, said Transportation Assistant Secretary Lorenzo Formoso III.
On the proposal of US-based Arescom, Formoso said the American company has to spend US$1 billion to provide the same coverage and service.
De Venecia's Amsterdam Holdings Inc. (AHI), on the other hand, needs US$562 million, added Formoso.
Cabinet officials also raised AHI's capacity to handle the project during the Senate inquiry, pointing out that the company only has P500 million authorized capital stock with P320 million paid up capital.
Mendoza said it was then National Economic and Development Authority (Neda) Chief now Commission on Higher Education (Ched) Chairman Romulo Neri who concluded that AHI lacked the necessary requirements.
When questioned by senators, Mendoza said First Gentleman Mike Arroyo did not interfere in the deal, contrary to de Venecia's claim.
De Venecia had said Tuesday that Elections Commissioner Benjamin Abalos and Arroyo had tried to persuade him to abandon the deal, alleging that the president's husband shoved a finger to his face.
Mendoza said there was no occasion on which the president's husband told de Venecia to back off.
While he admitted there was indeed a meeting at Wack Wack Golf and Country Club between de Venecia and the First Gentleman, Mendoza described it was a chance encounter.
He said Arroyo was surprised that de Venecia III was applying for this deal and told the businessman he was violating the law because his father is the House Speaker.
Aside from Mendoza and Formoso, other Cabinet officials who attended the hearing included Environment Secretary Joselito Atienza, Budget Secretary Rolando Andaya, Trade Secretary Peter Favila, Finance Secretary Margarito Teves, Justice Secretary Agnes Devenadera, Executive Secretary Eduardo Ermita, and Presidential Chief Legal Counsel Sergio Antonio Apostol.
Also during the questioning, Mendoza revealed that the House Speaker had invited him to the de Venecia home for breakfast and introduced his son to him.
He denied the alleged reconciliation meeting between Abalos and de Venecia III.
Although ZTE has no public bidding, it was fully backed by the Chinese government and fully funded with a loan from China's Export-Import Bank, payable in 20 years with only three percent interest and with no payments in the first five years.
Mendoza said ZTE has wider coverage than AHI and Arescom.
Abalos, who has been accused of receiving bribes from ZTE officials for brokering the deal, did not appear in Thursday's hearing but told the Senate committees that he would attend the next hearing.
The election chief said he will not dignify the accusations but he will face his detractors before the joint hearing next week.
Abalos is preparing the filing of P10 million-libel suit against de Venecia III.
Apostol, meanwhile, advised the House Speaker to tell his son to be circumspect with his statements, especially the ones about the First Gentleman.
"Well that is the Filipino custom. The head of the family usually tries to advise the members of the family to be careful and not to hurt people," he said.
He said the impact of the ZTE deal on the relationship between President Arroyo and the House Speaker depends on the elder de Venecia. He also warned that the loyalty of some congressmen to the Speaker might be affected if his son continues to testify against the First Gentleman.
Apostol said about 120 congressmen of the ruling coalition went to the Presidential Guest House on Wednesday upon the invitation of Presidential son and Pampanga Representative Juan Miguel "Mikey" Arroyo to express their support for the President. He said the Speaker came in later but went straight to the Palace.
He said the President arrived at 10:30 p.m. but left immediately. (Sunnex)
For more Philippine news, visit Sun.Star Davao. (September 21, 2007 issue)
Write letter to the editor. Click here.
Join the Sun.Star message board. Click here. |
|
|
|
[return to top]
[home]
|
|
