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Tuesday, March 11, 2008
Surprise witness surprises senators
MANILA (Updated 12 p.m.) - Senators were the ones surprised on the testimonies of the surprise witness in the Senate hearing on the botched national broadband network (NBN) project Tuesday.
Leo San Miguel, an electronics and communications engineer, was expected to support the earlier testimonies of a senate witness on alleged kickbacks given to the First Couple and other government officials to ensure the approval of the $329 million NBN-ZTE deal.
Arroyo Watch: Sun.Star blog on President Arroyo
But in an unexpected twist, San Miguel when questioned by senators denied any personal knowledge on the reported commissions by certain individuals regarding the NBN project.
"My responsibility in ZTE was purely limited on the technical aspect of the project. I don't have direct knowledge on the advances whatsoever. I'm not trying to be difficult. I have heard there are advances to the extent of radio and tv and newspapers," San Miguel said, as he was repeatedly pressed by Senator Panfilo Lacson to divulge his knowledge on the alleged cash advances.
"I'm a technical person. That's (cash advances and kickbacks) not my turf. Asked me about my turf, I can answer, but anything outside that, I don't know. I am not confirming nor agreeing to any of that," when urged to tell the truth as he was said to be under oath.
He said he has no personal knowledge on reports on commissions reportedly advanced by the Filipino group led by former Commission on Elections (Comelec) Chairman Benjamin Abalos Sr., from ZTE.
He however, confirmed knowing Abalos, businessman Ruben Reyes and former Chief Superintendent Ruben dela Torre, as the people tapped by ZTE in facilitating for the approval of the project.
He said in meetings where Abalos, Reyes and dela Torre were present here and abroad, his attendance was purely to give technical presentation on the project.
He however, told senators having overheard some officials discussing their commissions if the project gets approved.
San Miguel said Reyes and Abalos were among those who discussed commissions during one of the meetings on the NBN project.
Another Senate witness, Dante Madriaga, identified San Miguel as the person who hired him for the NBN-ZTE project and is part of the group who reportedly received advances from ZTE.
San Miguel confirmed hiring Madriaga to help him in the assessment of the ZTE project, but constantly denied knowledge about the kickbacks and cash advances as Madriaga revealed during his testimony two weeks ago.
San Miguel told senators that he was hired by ZTE as a technical consultant for the NBN project and his participation were all purely technical in nature.
However, his business with ZTE as a technical consultant was not covered by a contract, which came as a surprise to some senators.
He said Yu Yung, the ZTE's vice president for international affairs hired him.
Based on his agreement with ZTE, he will get one half of the one percent gross amount of the project, which for the $329 million NBN-ZTE deal means he is to receive $1.5 million.
San Miguel told senators that so far ZTE has refunded him P3 to 4 million of the expenses he incurred for the project.
These refunds were paid in cash, according to San Miguel.
In the course of the questioning, San Miguel was admonished by Minority Floor Leader Aquilino Pimentel.
Pimentel told San Miguel that much as he is technical person, the senate wanted to know about things he heard about the project.
Increase in project cost
San Miguel during the hearing also explained why the project increased from $262 to 329 million.
He said the $262 million proposal to the Commission on Information and Communication Technology (CICT) was limited to 1,733 barangays of the first and second class municipalities.
The $329 million proposal to the Department of Telecommunications and Communications increased because it now covers 25,000 barangays from first to sixth class municipalities.
Highlights
Meanwhile, San Miguel during his appearance denied being present during the meeting in Wack-Wack Golf and Country Club where First Gentleman Jose Miguel Arroyo told businessman Jose "Joey" de Venecia III, another proponent for the NBN project, to back off.
Joey who was also present in the hearing insisted that San Miguel was in the room when Arroyo told him to back off.
He however, admitted meeting Senate witness Rodolfo "Jun" Lozada in several meetings related to the NBN-ZTE deal.
But he denied Madriaga's statements linking him to have knowledge on commissions from the project.
He described Madriaga's story as "incredible."
NBN-ZTE deal cancelled
Earlier on Trade Secretary Peter Favila told senators that the controversial NBN project has already been cancelled.
Favila is the first Cabinet member who appeared in a senate investigation after President Gloria Macapagal-Arroyo lifted Executive Order 464.
However, Favila said there was no official document that would show that the NBN deal with ZTE Corp of China was cancelled.
But he said the minutes of the bilateral meeting between China's Jun Hintao and President Gloria Macapagal-Arroyo for the Philippines in Shanghai can attest that the contract has been cancelled.
The minutes was recorded by the Department of Foreign Affairs. (Sunnex)
For more Philippine news, visit Sun.Star Baguio.
(March 11, 2008 issue)
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