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Friday, February 08, 2008
Lozada confirms Abalos P200M offer to Neri
MANILA (Updated 3:55 p.m.) -- At least two persons have already declared that P200 million was offered by former poll chairman Benjamin Abalos Sr. to former socioeconomic secretary Romulo Neri for the approval of the national broadband network (NBN) project.
Neri earlier told senators that Abalos offered him P200 million once the NBN project with ZTE gets approval from the National Economic and Development Authority (Neda).
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Rodolfo "Jun" Lozada Jr., the technical consultant tapped by Neri to look into the proposals of the NBN project, said at one time he was told by Abalos that once the project gets approved by Neda he will advance P200 million from ZTE as their commission.
Abalos during his appearance in the Senate last year together with Neri, denied having offered money to Neri.
He also denied any connection to the NBN project explaining that he merely introduced his friends from ZTE to Neda people.
Aside from the P200 million offer, Lozada also corroborated the testimony of Jose "Joey" de Venecia III, the NBN whistleblower, that the project is overpriced.
He said contracts with the government are usually overpriced by at least 20 percent to facilitate kickbacks.
He further described that a 20 percent overprice in a government contract of much magnitude would usually be acceptable.
"It looks like that's the norm in government," said Lozada, citing as an example the $1.3 billion Southrail project to improve railway links to and from the capital. Some of the funding has come from China.
Lozada said the cost of linking government departments in a broadband network, which is what ZTE had been contracted to do, should only have cost around $132 million. The $130 million serves as supposed kickback by Abalos.
He told senators that the government's procurement system is "dysfunctional" and does not really work.
Lozada, testifying on the Senate inquiry on the $329 million national broadband network (NBN) project, said institutionally the procurement process doesn't really work since it is supplied driven when it is supposed to be need driven.
Government projects under this system often go to suppliers who are closed to officials handling the projects, Lozada said.
"The supply-driven is primarily geared towards tailoring the process to the sponsor. We don't look (for the best supplier). It should be need-driven. Our need should be the basis of our procurement but now it is supply driven. If someone in the government knows a supplier they will now tailor fit a project that will fit the (supplier)," he said.
He added that the procurement system's check and balance is "restrained" resulting to the NBN and Southrail type projects.
In the NBN project, Lozada told senators of the $130 million commission which Abalos was protecting.
Abalos was pushing for an NBN project with ZTE, which would be under a government loan. The project's actual cost is only $132 million and the $130 million was the commission, Lozada said.
Lozada said $130 million is too big and told Abalos that "bubukol ito" (noticeably big) and was instructed by former National Economic and Development Authority (Neda) Secretary Romulo Neri to "moderate the greed."
President Gloria Macapagal Arroyo cancelled the ZTE contract following the controversies, but the scandal has resurfaced with Lozada's dramatic appearance before Senate.
Arroyo's husband has been named in the controversy and Abalos was forced to resign as election commission chief. (Sunnex)
For more Philippine news, visit Sun.Star Cagayan de Oro.
(February 8, 2008 issue)
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