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ENetwork Headline
Abalos quits as poll chief amid bribery raps

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Monday, October 01, 2007
Abalos quits as poll chief amid bribery raps

MANILA (Updated 2 p.m.) -- The scandal-tainted Philippine elections chief announced his resignation Monday amid allegations he tried to bribe a Cabinet official and a businessman to approve a broadband contract with a Chinese company.

With his resignation Benjamin Abalos, head of the Commission on Elections, avoided possible impeachment in the House of Representatives.

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"I'm resigning ... effective immediately," Abalos told a news conference. "However, let not my detractors feast on this declaration. I'm not admitting guilt for any wrongdoing."

The impeachment complaint, filed last week, stems from a Senate hearing at which former socioeconomics secretary Romulo Neri said Abalos offered him US$4.4 million (euro3.1 million) to endorse asChinese company's bid.

The US$330 million (euro235 million) contract with China's Zhong Xing Telecommunication Equipment (ZTE) Corp. has been suspended. The company has denied any irregularities.

In a Senate hearing last week, Jose "Joey" de Venecia III, founder of a losing Philippine bidder, Amsterdam Holdings Inc., also claimed Abalos offered him US$10 million (euro7.08 million) to withdraw his own broadband proposal.

Abalos has denied all allegations and complained he was treated unfairly by senators. He said his resignation was meant to spare the elections body "from the vicious and malicious attacks on my person."

He said his lawyers were preparing "many legal cases to expose all the lies" against him.

The scandal has caused fresh domestic political concerns as President Gloria Macapagal Arroyo tries to rally investors amid an improving economy.

Neri has testified he told Arroyo about Abalos' bribe attempt and was advised not to take it. He refused, however, to elaborate on his conversation with Arroyo.

De Venecia also implicated the president's husband, Jose Miguel "Mike" Arroyo, saying he told de Venecia to "back off" from the bidding.

A lawyer for Mike Arroyo, Jesus Santos, said Arroyo only reminded de Venecia - the son of the speaker of the House - that as a relative of a government official he should not get involved in government transactions.

China's government has said questions over the ZTE contract would not affect its growing business ties with the Philippines. (AP)

For more Philippine news, visit Sun.Star Manila.

(October 1, 2007 issue)
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