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Monday, September 24, 2007
Gov't can’t cancel broadband deal: official
MANILA – A day after President Gloria Macapagal-Arroyo ordered the suspension of the controversial broadband deal, her legal counsel said Malacañang cannot call off the contract because it could still be declared valid by the Supreme Court (SC).
“The case is still pending at the Supreme Court. What if the SC declared the contract as valid? So we cannot cancel it right now. If the SC declared the contract as illegal or null and void, then we will respect it,” Chief Presidential Legal Counsel Sergio Apostol said.
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The government represented by Transportation Secretary Leandro Mendoza signed a $329.41 million supply contract with ZTE Corp of China in April in connection with the national broadband network (NBN) project.
Trade Secretary Peter Favila announced on Saturday that Arroyo has ordered the indefinite suspension of the ZTE supplier’s contract due to questions raised by various quarters on the validity of the deal.
Press Secretary Ignacio Bunye, in a text message, said Favila, on orders of the President, conveyed to his Chinese counterpart the Philippine government’s desire to suspend the implementation of the broadband deal.
“Minister Bo Xilai said his government understands and respects the decision of President Arroyo and will continue to support her and her programs,” Bunye said.
Apostol dismissed statements that the suspension was just a form of damage control, saying a suspension is timely because of the court cases and the temporary restraining order (TRO) issued by the high court.
“It’s not about the intrigues and the Senate investigation,” he claimed.
“Let us respect the President’s decision. Let us also respect the Supreme Court,” he said.
Also ordered suspended by the President was the $460-million Cyber-Education Project, which would also be funded by a loan from China.
Education Secretary Jesli Lapus has expressed dismay over the suspension of the Cyber-Education Project which he claimed would further delay efforts to raise the standard of education in the country.
Lapus claimed that the Cyber-Education Project has no supply contract yet.
The project involves placing a satellite television in the country’s public schools, especially those in remote and hard-to-reach places. The students would then view a “master” teacher explaining English, Math, and Science concepts.
The project, Lapus said, was expected not only to save the department around 30 percent on teachers’ training, textbooks and communication, but also to contribute in improving the quality of education.
He bewailed the fact that critics lumped the project with the controversial US$329-million NBN deal entered into by the Department of Transportation and Communication (DOTC) with Chinese firm Zhong Xing Telecommunications (ZTE) Corp.
“Contrary to reports, there is still no contract for this project. There is no supply contract. In fact there is not even a contract to suspend,” said Lapus.
Senate probe
The suspension of the ZTE contract however failed to stop senators from pursuing their investigation on the alleged anomalous broadband deal.
The senators still wanted to hear what former National Economic and Development Authority (Neda) Secretary Romulo Neri has to say about the multimillion dollar deal which he approved.
The senators also wanted Commission on Elections Chairman Benjamin Abalos explanation after his name was dragged to the controversy.
Both Abalos and Neri were supposed to appear during the Senate hearing last Thursday but the two excused themselves and vowed to appear in the next scheduled hearing which will be on Wednesday.
Neri in an earlier television interview said he is prepared to reveal everything about the controversial ZTE-NBN deal.
Senate President Manuel Villar believes that Neri had "something big" to say about the NBN deal which would explained the tight surveillance on him.
Neri requested for additional escorts after noticing suspicious looking persons conducting surveillance outside his house.
Cancellation not suspension
On the other hand, the Senate President called for the cancellation and not the mere suspension of the NBN deal, saying the government does not need it.
In a press conference in Cebu Sunday morning, the senator said it will be more beneficial to everyone if the National Government uses the funds to build schools and hospitals instead.
“It might be better to cancel it, because the suspension is only temporary. What happens if other allegations surface after the investigation?” he told reporters at the Waterfront Cebu City Hotel and Casino.
Villar is happy, though, that Malacañang is listening to the critics of the contract with ZTE.
‘Overpriced’
“Sa mga hearings maliwanag na hindi pa naman kailangan ng gobyerno natin ito. Maliwanag din na may malaking overpricing (It’s clear from the hearings that the government does not need this yet. It’s also clear the deal was overpriced),” Villar further said.
Even after President Arroyo ordered last Saturday the suspension of the deal, following allegations of bribery and overpricing, the Senate inquiry on the transaction will continue.
Villar said the Senate hopes to establish with basis two things: Whether or not there is really a need for the broadband project and whether or not the contract is overpriced.
He assured the public that despite the long hours spent on inquiries and investigations, the Senate will still focus on their legislative functions.
The Senate, he said, will continue to prioritize the pending approval of the Joint Japan Philippine Economic Partnership agreement and pass at least 14 priority measures before it adjourns on Oct. 13, including social justice measures like the Cheaper Medicines Act, the veterans’ bill, the human rights indemnity for prisoners and amendments to the Child Pornography Law.(JMR/LCR of Sun.Star Cebu/Sunnex)
For more Philippine news, visit Sun.Star Manila. (September 24, 2007 issue)
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