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Sunday, February 24, 2008
Opponents seek investigation of Arroyo over corruption scandal (4:24 p.m.)

MANILA -- Opponents of President Gloria Macapagal-Arroyo called for an inquiry Sunday into her role in a growing corruption scandal after she publicly acknowledged she allowed the signing of a major telecommunications contract after being warned of irregularities in the deal.

Arroyo admitted Saturday she was warned last April about possible corruption in the US$330 million contract with Chinese telecommunications giant ZTE Corp., but said her government could not immediately back off from signing a deal.

Arroyo flew to China on April 21, 2007, to witness Chinese officials signing the contract, along with four other projects to be funded by China.

Five months later, Arroyo ordered officials to drop the deal after a losing bidder testified in the Senate that her husband and the then-elections chief had threatened him to make him abandon his bid for the national broadband project. Both men have denied any wrongdoing.

Arroyo's opponents say her statement and decision to scrap the project prove it was ridden with irregularities. (AP)



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Arroyo admits signing ZTE deal despite its flaws

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