Saturday, September 22, 2007
Philippines suspends controversial cyber projects with China (1:56 p.m.)
MANILA -- Philippines President Gloria Macapagal-Arroyo has ordered the suspension of a national broadband deal and a cyber education project with China amid allegations of graft, officials said Saturday.
The suspension followed allegations of bribery and overpricing in the US$330 million (euro235 million) project won by China's Zhong Xing Telecommunication Equipment Corp. (ZTE) to establish a national broadband network for the government, Trade Secretary Peter Favila said.
Favila said Arroyo ordered the "indefinite suspension" of the projects because of the controversy that prompted a Senate investigation into the ZTE deal. He declined to elaborate on the decision, citing Arroyo's "executive privilege."
The cyber education project, which aims to provide educational services through satellite and the Internet to 90 percent of the country's public elementary and high schools, will also be partly funded with a loan from China. Critics questioned the relevance and cost of the US$465.5 million (euro331.3 million) project. (AP) |
