SC rules ZTE suits moot; Dissenting justices warn of deal resurrection

SC rules ZTE suits moot; Dissenting justices warn of deal resurrection

By Benjamin B. Pulta

Daily Tribune 07/15/2008


Act of executive department, the Court must take judicial notice of such official act without need of evidence, the Court said.

The Court explained that under Section 1, Rule 129 of the Rules of Court, it is mandatory for the Court to take judicial notice of the official acts of the President of the Philippines without instruction of evidence.

Pontificating on issues which no longer legitimately constitute an actual case or controversy will do more harm than good to the nation as a whole. Wise exercise of judicial discretion militates against resolving the academic issues, as petitioners want this court to do, the SC added.

The Court is...constrained to dismiss the petitions and deny them due course because of mootness and because their resolution requires reception of evidence which cannot be done in an original petition brought before the Supreme Court.

The tribunal's majority ruling also said, it would be too presumptuous on the part of the Court to summarily compel public respondents to comply with the pertinent provisions of law regarding procurement of government infrastructure projects without any factual basis,

For the Court to do so would amount to a breach of the norms of comity among co-equal branches of government. the SC said.

Of the 11 magistrates who sided with the majority ruling for the mootness of the ZTE-NBN deal, Justice Minita Chico Nazario was on leave.

Three justices dissented, while the at least three justices issued separate but concurring opinions, among whom are Chief Justice Reynato Puno, Senior Associate Justice Adolf Azcuna and now retired associate justice Consuelo Ynares.

In a 31page dissenting opinion by Associate Justice Antonio Carpio, the justice insisted that the ZTE deal is void and that it is capable of being repeated.

Justice Azcuna, who voted with the majority said: I find the points raised by Justice Carpio...arguably sound, correct and almost unassailable as an abstract treatise in law. Nevertheless, I am of the view that the desistance from the agreement in question renders the matter academic and moot, leaving no actual controversy calling for the exercise of judicial power.

Two justices, Alicia Austria-Martinez, and Conchita Carpio-Morales joined Carpio's dissent.

Carpio claimed the contract is void from the beginning for being contrary to the Constitution, the Administrative Code of 1987, the Government Auditing Code of the Philippines and the Government Procurement Reform Act. and that as such, the ZTE supply contract is legally non-existent.

He also said the Philippine government's decision not to continue with the ZTE project during the pendency of this case,even if deemed a cancellation of the ZTE supply contract , had no legal effect on the status of the contract, and did not moot the petition since not only are the legal issues in the case capable of repetition yet evading review, the ZTE supply contract is itself capable of being resurrected.

It is time to put an end to government procurement contracts amounting to tens of billions of pesos,exceeding even the annual budget of the judiciary,that are awarded and signed without an appropriation from Congress , and without the required public bidding.

This court must categorically declare the ZTE Supply Contract void from the beginning. the dissent pointed out.

Carpio stressed that the ZTE supply contract is not funded by an appropriation law and does not have a certificate of appropriation and fund availability but that it is not only void, but also void from the beginning under the Civil Code.

The magistrate also pointed out that even as the funding for the ZTE supply contract will come from a foreign loan, this does not negate the rationale for public bidding since Filipino taxpayers will still pay for the loan with interest.

He also underscored the need to safeguard public interest against anomalies existing in all government procurement contracts, regardless of the source of funding. Public bidding is the most effective means to prevent anomalies in the award of government contracts.

Public bidding promotes transparency and honesty in the expenditure of public funds. he said.

‘Huge bribes’ delayed $503-M Northrail project

Ousted House Speaker Jose de Venecia Jr. should testify before Senate Blue Ribbon Committee on the botched $329 M ZTE broadband deal and the overpriced $500 M Northrail Project. He was an insider in the multi million dollars’ scams.


‘Huge bribes’ delayed $503-M Northrail project, says lawyer

By JESS DIAZ
The Philippine Star

The Chinese contractor of the $503-million North Rail project wants out because of the "huge bribe" paid to Filipino officials, causing a five-year delay in the project, according to a lawyer familiar with the case.

Speaking at the Serye Café news forum in Quezon City, lawyer Harry Roque said China National Machinery and Equipment Group (CNMEG), a state-owned corporation, spent most of the $150 million advanced by the government under its contract paying bribes.

"The contractor is backing out of the project because of the huge cost of corruption," he said.

"They have paid big bribes to Philippine officials, and they want to recover those big amounts first before they proceed."

Roque said one official involved in the project had at least P500 million in his bank account.

"The Chinese contractor reported the bribes to President Arroyo last Monday when she met with them in Clark," he said.

Chinese embassy officials know about the bribe or "tongpats," but they "are not speaking about it, at least not publicly," he added.

Roque said CNMEG wants the government to advance an additional $200 million to recover the cost of alleged corruption, but that Malacañang has refused.

"This is the story that Palace officials are not telling the public," he said.

Roque, who challenged the legality of the Northrail contract, said the Makati Regional Trial Court has ruled that since the contract is not a treaty, it is covered by the Procurement Law and should be subjected to public bidding.

"The court declared it as a commercial contract because it did not involve the exercise of sovereign functions," he said.

Roque said CNMEG has questioned the decision before the Court of Appeals, where the case is pending.

"They are claiming that it is a treaty and should not go through the requirement of public bidding, and that they are immune from suit because they are a Chinese state corporation," he said.

Roque said administration officials are speaking "with discordant voices to hide the corruption involved in Northrail and the fact that the $150 million advanced by the government is already gone without an inch of railway being built."

"One official claimed the project has been terminated, while another asserted that it’s still on," he said.

Edgardo Pamintuan, whom Mrs. Arroyo has reportedly named to head North Luzon Railways Corp., said CNMEG has "demobilized" from the project, leaving it in limbo.

However, Executive Secretary Eduardo Ermita said the railways project will continue despite issues involving its contractor.

A similar Chinese-funded project, the plan to build a national broadband network (NBN) for the government, has been derailed by allegations of corruption.

The awarding of the NBN contract to Chinese firm ZTE Corp. was witnessed by Mrs. Arroyo herself on April 21, 2007, just days after her husband went through life-threatening heart surgery.

The First Gentleman was still recuperating when Mrs. Arroyo left his bedside for China for the signing ceremonies between ZTE officials and Transportation and Communications Secretary Leandro Mendoza.

There were claims that at least $130 million in commissions and kickbacks were to be made from the $329-million ZTE contract. There were even allegations of advances amounting to $41 million. ABS-CBN News

Related links: The Ghost of IMPSA
WB: Corruption in RP worst in East Asia

Gloria Arroyo's Misdeal with China: Spratlys Sell-Out

Photo from Malaya
Related Links
Sold: 24,000 sq. km.
RP territory in GMA deal delineated
Exploring The Spratlys
Malacañang open to probes on Spratlys deal
De Venecias, Razon behind oil, gas extraction by UK firm
Based on above map, the red covered area joint seismic study agreement the Philippines struck with China over-laps Philippines 200 nautical miles Exclusive Economic Zone. The red area covers near Palawan Island shorelines. There are ongoing Nido offshore oil exploration Galoc 3 and Galoc 4 wells in Northwest Palawan basin. It’s not only Kalayan Group Is.; Palawan Is. is also included in the alleged deal sell-out.

A POLICY OF BETRAYAL Part 1
Part 2
Part 3

Oust Gloria Arroyo

Photo from Malaya Makati City Interfaith Rally February 29, 2008

Oust-GMA is call in Makati rally

BY ASHZEL HACHERO
AN interfaith prayer rally scheduled this afternoon in Makati City is expected to gather at least 50,000 participants, including former President Joseph Estrada and Bro. Eddie Villanueva, head of the Jesus is Lord Movement.
Estrada, after a "Mass for Truth" yesterday at the University of Makati, said he supports the call of fellow former President Corazon Aquino for the resignation of President Arroyo.

The rally, with the theme "Katotohanan, Katarungan at Pagbabago" and organized by the Church-based group Solidarity Philippines, will be attended by militant, student, opposition and other sectoral groups that have been calling for Arroyo's ouster on the ground she has lost the moral authority to govern.
Rally participants are advised to bring their rain gear as the weather bureau said Metro Manila will have cloudy skies and possible rains.
The three-hour prayer rally at the Ninoy Aquino monument at the corner of Ayala and Paseo de Roxas avenues will start at 5 p.m.

At 2 p.m., Villanueva's group will hold a worship program and later join the rally. Villanueva has reportedly promised to bring 100,000 members.
Other religious groups will gather at the Gabriela Silang monument at Ayala and Makati avenues and march to the monument. The groups include Solidarity Philippines, National Council of Churches in the Philippines, Promotion of Church People's Response, Kapatirang Simbahan para sa Bayan, Kairos Philippines, United Church of Christ in the Philippines, United Methodist Church, Iglesia Filipina Indepen-diente, and the Inter-Faith Justice, Peace and Integrity of Creation Network.
They will start the march to the monument at 3:30 p.m. An hour later, seminarians from the St. Andrews Theological Seminary would perform the "pattong," a Cordillera unity dance, while the religious leaders walk from the Ninoy Aquino monument toward the main stage.

Militant groups led by Bayan, which has promised to bring 20,000 protesters, will join the rally at 3 p.m. Bayan said it has prepared a 20-foot long effigy depicting Arroyo as a "devil snake" holding a gun and bundles of money.
MALAYA

Bloggers mount EDSA revolution on-line

Sigaw ng Bayan Gloria Alisin Na!

Sigaw ng Bayan Gloria Alisin Na! Traidor!
Welcome to exotic Philippine Islands, the province of China. Gloria Arroyo has sold Philippines’ national sovereignty to People’s Republic of China in exchange of ‘sweet deals’ and kickbacks. China’s foreign loans have directly benefited GMA’s greed and her cronies. China, Philippines signed 14 agreements to explore our mines, farmlands, joint offshore exploration operations and telecommunication projects. China Eximbank won’t give foreign loans to the Philippines without string attached to debt. Ousted house speaker Rep. Jose De Venecia should be also held responsible for the Spratly sell-out. He brokered the anomalous North Rail Project. Gloria and JDV are partners in crime.
Related Links

ZTE officials advanced US$41M to GMA, cronies, says new witness
NBN-ZTE broadband scam
Lawyers' groups join calls for Arroyo resignation
Sen. Trillanes wants Spratly deal probed in Senate
Mike Defensor brokered kickback of First Couple

Resign Gloria Macapagal Arroyo!

Banner from Philippine Experience blogsite

Philippine bogus President Gloria Arroyo has no moral authority to lead our divided nation. Political scandal, scams and anomalous transactions under her inept corrupt regime is no longer acceptable. She is dragging the Senate investigation on Hello Garci political scam and China's ZTE Corp. broadband scam. The Arroyo government is run by thieves and Mafia-like cronies.

IBON Survey: Most Filipinos Want Arroyo To Step Down Due To Corruption Charges

Recent corruption scandals besetting the Arroyo administration have led most Filipinos to call for President Gloria Macapagal-Arroyo to step down, according to the results of the latest IBON survey.
Asked if they were aware of calls made recently by members of the Church and other sectoral groups for Pres. Arroyo to resign from office and face corruption charges levelled against her, 75% of the total 1,503 survey respondents said yes.
Of these, 77.4% said they agreed with such call to step down.
Various interfaith and sectoral groups such as Solidarity Philippines, Concerned Citizens Group, United Church of Christ in the Philippines, among others, have called for a rejection of what they called as Arroyo’s morally bankrupt government.
The IBON nationwide survey was conducted from January 7 to 14, 2008, with 1,503 respondents. It has a margin of error of plus or minus three percent.

Gloria Arroyo aware of corruption in NBN -ZTE deal before signing

Photo: Far3StaticFlicker
Gloria Arroyo Confessed Her Crime
Whoever made Gloria Arroyo’s new alibi script is dumb idiot. It seems that she wants to tell the Filipino people ‘another lapse of judgment’. Gloria committed a heinous crime. She did nothing to stop the anomalous deal. The bitch is lying big time.

Did Gloria Arroyo inform her Cabinet men about the irregularities in the ZTE deal before they went to China? Who are involved? What are the specific misdeals? Did she order an official investigation upon learning the alleged irregularities? There are more questions than answers. Why only now?

GMA aware of corruption in NBN deal before signing

By Sherwin C. Olaes
02/24/2008
President Arroyo yesterday admitted she was aware of the purported corruption in the ZTE-National Broadband Network (NBN) deal that the government forged with the Chinese firm in April last year.
The Chief Executive, during a radio interview over dzRH, however, stressed that she was only informed of the irregularities in the broadband project the night before signing the supply contract.
“I was told about corruption the night before the signing of the supply contract. How could we cancel it the night before the signing,
given that another country was involved in this contract?” she said.
Mrs. Arroyo added she pushed through with the contract because of the compromise with China, whose government-to-government business relationships could have been affected.
The President witnessed the signing of five contracts between the Philippines’ Transportation and Communications Secretary Leandro Mendoza, Education Secretary Jesli Lapus, Trade Secretary Peter Favila and China’s ZTE, Tsinghua Tongfang and other Chinese contractors last April 21, 2007.
It was Mendoza and ZTE president Yu Yong who signed the NBN contract that was witnessed by Mrs. Arroyo.
The Philippine government’s copies of the contract, which were reportedly stolen, had been reconstituted. Daily Tribune

Gloria Arroyo has sold Philippine sovereignty to China

The Chinese government won’t give billions US dollars loan to the Philippines without string attached from it. China-Philippine Agreements encourages Chinese utilization of our lands and marine resources, promotes unfair competition and increases our foreign debts. China will develop about 500,000 hectares of land for agribusiness development under a memorandum of agreement with China signed January 2007. The deal will cover 8.8 million hectares of idle alienable and disposable lands and forest lands. The $329 M NBN-ZTE broadband scam, anomalous North and South Rail projects could be a part of Arroyo’s secret deal with China.
Philippine national sovereignty is at stake. RP-China Agreements should be ratified by the Senate as required by law. No treaty or international agreement shall be valid and effective unless concurred in by at least two-thirds of all the Members of the Senate. Gloria Arroyo keeps the Senate in the dark with her secret deals with China. Treason is an impeachable offense under the 1987 Philippine Constitution. The Arroyo regime is dragging the Senate investigation on China's ZTE Corp. broadband scam.

Treason in dirty Chinese loans?
Malaya publisher Amado Macasaet said he was told by a source that under the "Spratly Deal," China would be allowed to explore territorial waters of the Philippines.
"This is treason because the pact has the effect of giving away Philippine sovereignty to a foreign country. In return, Chinese-owned firms provide the Philippines with overpriced loans for numerous projects," he said.

Related Links
Primer on RP-China Agreements: Legal Objections and Remedies
Manila, Beijing agree fishing deal on disputed area
Spratly Islands Dispute
Malampaya Experience Shows Philippines May Lose From Spratly Deal

Oust Gloria Macapagal Arroyo!

Gloria Arroyo has no moral authority to lead our divided nation. Political scandal, scams and anomalous transactions under her bogus regime is no longer acceptable.
What else is new? Impeach me! Coup Me! And now Assassinate Me! I think the alleged Al Qaeda plot to assassinate Gloria Arroyo is just a squid tactics to divert public attention on ZTE scam. Lozada’s expose’ has been in the headlines, talk shows and blogosphere for two weeks. Gloria Arroyo and her cohorts need a breathing space. Why only now? The timing is very suspicious.

Nov.29 Movement: dissent in action
ZTE scam

ZTE scam Senate witness abducted at airport

The Gloria Arroyo government is controlled by Mafia boss Jose Pidal and protected by rogue AFP chief and some scalawag PNP elements. Where is ZTE scam Senate witness Rodolfo Lozada? Is he still alive?
Arroyo crony Ruben Reyes received $46 M dole out based on Dante Madriaga’s narration of sequence of events that led to $329 M NBN-ZTE broadband scam. There’s no surprise why $200 M kickbacks was added to the original $129 M price.


ZTE witness‘abducted’ at airport
NAIA security chief whisks Lozada
away from Senate arresting team
________________________________________
BY DENNIS GADIL
A TEAM believed led by the security chief of the Ninoy Aquino International Airport "snatched" NBN-ZTE prime witness Rodolfo Noel Lozada from Senate arresting teams as he arrived yesterday.
Reports said Lozada, who flew in from Hong Kong at around 4:40 p.m., was apparently whisked off by retired general Angel Atutubo, NAIA assistant general manager for security, and was directly taken down to the tarmac to a waiting van.
Atutubo reportedly was a former aide of President Arroyo. The van went toward Villamor Airbase in Pasay City.
Ellen Tordesillas tells of an insider’s version of how the ZTE deal was ‘cooked.’ Malaya.
Security cams capture PSG man with Lozada in airport

House Speaker Jose de Venecia Ousted

The war among the thieves has begun. I smell blood. House Speaker Jose de Venecia (JDV) was ousted and spills election fraud beans and graft and massive corruption of the Arroyo administration. Malacanang orchestrated the ouster as revenge against Jose DeVenecia. JDV’s son Joey DeVenecia implicated presidential husband Miguel Arroyo in the $329 M NBN-ZTE broadband scam. What’s next? The 4th impeachment complaint against Gloria Arroyo this year is highly possible. JDV and his Lakas Party loyalists may join the opposition. There are presently 30 opposition members in the House of Representatives. It needs about 80 votes for the impeachment case to prosper and forwarded for trial in the opposition dominated Senate. Gloria Arroyo expects a stormy political climate until her 2010 term ends. V for De Venecia’s vengeance!

How lawmakers voted in vacating Speaker's seat

Gloria Arroyo, et al face graft charges over ZTE-NBN contract

Let’s observe how Presidential Chief Legal Counsel Sergio Apostol and Solicitor General Agnes Devanadera handle the presidential immunity issue. I think presidential immunity from suit does not covers de facto president or usurper.

What do we expect from Jose Pidal's crony Ombudsman Merceditas Gutierrez? This will be an impartiality test case for Ombudsman Gutierrez. She should be loyal to the Constitution not to Gloria Arroyo or Jose Pidal. The Joc-Joc Bolante fertilizer scam is going nowhere. She even absolved former Comelec chairman Benjamin Abalos’ criminal liability in the over-priced election counting machines. ZTE-NBN scam key player Trade and Industry Secretary Peter Favila should be also included in the complaint.


Arroyo, et al face graft charges over NBN contract

A group led by former vice-president Teofisto Guingona Jr. filed Tuesday a graft complaint before the Ombudsman against President Arroyo and three others in connection with their alleged involvement in the $329 million broadband network project with China's ZTE Corp. ABS-CBNNEWS

"Impeach Me" P2M Bribe Try Bared

"Impeach Me" is a sinister plan to save Gloria Arroyo from real impeachment complaint. Lawyer Pulido's complaint is weak and designed to fail at the Lower house. Gloria’s political survival is at stake in the anomalous $329 M ZTE-NBN broadband contract.


Palace ‘messenger’ offered ‘bribes’ to solons for endorsement

P2-M impeach GMA sign- up bribe try bared

By Alejandro Lichauco
10/09/2007
Evidence of Malacañang’s hand in the alleged bogus impeachment complaint against President Arroyo, to guarantee her immunity for a year from any move by Congress to remove her constitutionally through an impeachment process, was bared yesterday by activist Rep. Crispin Beltran of Anakpawis party-list.
Beltran took to the floor yesterday and disclosed an offer from a Malacañang “messenger” of P2 million for him to endorse the impeachment complaint filed surreptitiously last Friday, at the close of office hours in Congress.
Congressional sources yesterday claimed the “Malacañang messenger” is a former presidential aide but stopped short of identifying him by name. Daily Tribune


Related Links
Kampi exec offered P2-M bribe to sign impeach case - Beltran
Lacson wants to probe Arroyo cash ‘gift’ to solons, local pols
Bulacan governor got P500,000 from Malacanang
Bribery in the Palace: Akbayan calls for probe of solons

Elections chief Benjamin Abalos, Sr. Resigns

The resignation of Abalos is a part of Malacanang’s game plan. It’s a calculated Queen’s Knight Sacrifice to save the throne. Elections chief Benjamin Abalos, Sr. is just a sacrificial lamb to absorb the heat from the $329-M ZTE-NBN scam. Paper trails points directly to Malalcanang Palace. Gloria Arroyo and Jose Pidal are held responsible for the ZTE scam. Who's next to resign?


Razon's Hand in ZTE-NBN Deal
Razon now most powerful businessman, says De Venecia son

Smoking Gun: GMA “special authority" document

Arroyo-okayed-talks-with-ZTE-on-NBN-before-NEDA-review

The buck stops at the doors of Malacanang Palace based on paper trails submitted to Senate Blue Ribbon Committee. Congenital liar Gloria Arroyo approved the anomalous $ 329 M ZTE-NBN project. She pretends innocence and lied to the public about “internal-discreet” investigation on P200 M bribery offered by Elections chief Benjamin Abalos to NEDA chief Romulo Neri. Why? There’s no official report and no government agency came forward who did the investigation. It’s too late for Malacanang-led formal probe on ZTE-NBN scam. The Ombudsman, the Lower House and the Senate have already started its investigation.
We expect another cover-up operation at the expense of peoples’ taxes. According to GMANewsTV: Through "special authority" documents she gave two Cabinet secretaries, President Gloria Macapagal Arroyo authorized negotiations for the award of the national broadband network (NBN) project to China’s ZTE Corporation, months before the National Economic and Development Authority (NEDA) started its evaluation of the NBN project, according to official records submitted to the Senate Blue Ribbon Committee. Here she goes again, lying to her teeth big time.

Other Gov’t Deals With China Also Marred By Bad Loans And Corruption

The tip of the iceberg ZTE-NBN $200 M Scam

The ZTE Corp. broadband $329 misdeal is just a tip of the iceberg. Hello Ben Abalos! Hello Jose Pidal! Hello Gloria! The vultures in the corrupt Arroyo government had a frenzy day. Gloria Arroyo and her cohorts have sold our country to China. Secret deals and anomalous-questionable agreement with China to explore Philippines’ natural resources, mines, alienable lands and sea-aquatic explorations.

In the RP-China Agreements, our government agencies are contractually-bound to look for more than one million hectares of land to be leased out to approximately five Chinese corporations. 1.4 million hectares of land to 5 Chinese corporations. How about the US$ 465.5 million Cyber-education project? Maybe it’s another misdeal. Unfortunately, Filipino taxpayers have to shoulder these behest loans. Death by hanging to traitors!

$200-M plus scam in ZTE-NBN kickbacks bared

By Angie M. Rosales
Daily Tribune 09/05/2007

Once again, corruption reared its ugly head under the Arroyo administration with kickbacks galore amounting to way over $100 million, divided accordingly among a high-ranking poll official, the “Big One” and “Little One.”
“Kickbacks” in the contro-versial broadband contract with Chinese firm ZTE Corp. practically ate up the project’s cost and ended up 300-percent higher than the original or proposed amount, with highly-placed public officials and public figures said to have pocketed the “loot” amounting to over $200 million.
Citing his sources, opposition Sen. Panfilo Lacson yesterday bared the details surrounding the ZTE deal he dubbed the “great grandmother of all scams,” with some $20 million having already been disbursed, as a downpayment.
Revealing the “break-down” in the botched deal, according to Lacson’s informants, would have been the following: $55 million would go to a Commission
on Elections (Comelec) official; $75 million to two “highly-placed” individuals in government whom he referred to as the Big One and the Little One, $68 million alleged to have been appropriated to form part of the President’s “war chest” in the senatorial polls last May.
“That’s really big. That’s more than P3 billion. That more than enough to kill (defeat) us (opposition senatorial bets) in the (last) elections. Good thing it wasn’t released yet that time,” Lacson said during an interview, referring to the $68 million that would have gone to the administration’s campaign fund.
“Three-hundred percent actually is the overprice for ZTE to win. There is already a profit of $30 million. There was already a full disclosure of the $30 million net profit (because) they (ZTE) would bid at $132 million,” he said, adding that the Chinese firm’s project, in which the government secured a loan from the China Export and Import Bank (Eximbank) recently, would have been fair enough for the administration without the hanky-panky.
“Even at $132 million, it would have been fair enough. An American firm’s offer was even higher, it was at $135 million,” he said.
As Lacson made the disclosure, the Senate is seen to also call for an investigation on this mess, parallel to that already initiated in the House of Representatives.

ZTE Corp. P26-B CyberEducation
Anomalous ZTE contract continues to unravel

‘Abalos tried to bribe ZTE rival into backing out’

Malacanang must protect Elections chief Benjamin Abalos at all cost or he may spill the beans. The revival of Hello Garci political scam and the possible Comelec's involvement in the cover-up is too hot to handle. Massive and systematic electoral fraud in 2004 presidential election may have the blessings of Abalos and Gloria Arroyo. The entire Arroyo government played specific roles in the systematic election fraud and subsequent cover-up operations before and after votes are counted by the joint congressional vote canvassing.

‘Abalos tried to bribe ZTE rival into backing out’

By PAOLO ROMERO
The Philippine Star

Commission on Elections (COMELEC) Chairman Benjamin Abalos allegedly made several efforts last year to bribe the head of a rival proponent of the government’s national broadband network (NBN) project with $10 million to give way to ZTE Corp.

Abalos also allegedly suggested that the contract be overpriced by about $70 million, to be charged as consultancy fees.

A source privy to the alleged bribery attempts said Abalos invited Jose de Venecia III, son of Speaker Jose de Venecia Jr. and co-founder of Amsterdam Holdings Inc. (AHI) to the Wack-Wack Golf and Country Club sometime in December for a breakfast meeting.

The COMELEC chairman is also a ranking officer of the exclusive golf club located in Mandaluyong City.

Neri drops bombshell: Abalos approached me for ZTE

ZTE broadband $330 M misdeal: Elections chief Benjamin Abalos in hot water

Comelec Chairman Benjamin Abalos has no business in DOTC broadband project. He is not an expert in wireless telecommunications. What monkey business he is dealing with China’s ZTE?


Graft raps filed vs DOTC
chief over broadband deal

BY PETER TABINGO
NUEVA Ecija Rep. Carlos Padilla yesterday filed criminal complaints before the Office of the Ombudsman against Transportation Secretary Leandro Mendoza and two subordinates over alleged anomalies in the awarding of the $330 million broadband project to Chinese firm ZTE Corp.
Padilla accused Mendoza and assistant secretaries Lorenzo Formoso and Elmer Soneja of violating the Anti-Graft and Corrupt Practices Act, the Telecommunications Policy Act, the Build-Operate-Transfer Act and the Government Procurement Act.
He said executives of ZTE Corp. including its chairman Hou Weigi, vice president Yu Yong, chief Manila representative George Zhu Ying, and executive director Fan Yang should also be indicted for conspiring with DOTC officials in binding the Philippine government to what he said was an onerous deal.
He assailed Mendoza’s decision to burden the public with the $330 million project funded by a loan from the Chinese government, saying two other bidders were willing to build the broadband project at no cost to government. The other bidders were Amsterdam Holdings Inc. and Ameriscom of the United States.
"There was no bidding done for this project, and under the law, all telecommunications projects of the national government have to be bidded out. In this case, all aspects of the contract are suspicious because these have been kept under wraps," the opposition lawmaker said.
Padilla also chided the Department of Justice for allowing itself to be the "laughing stock" for rendering a favorable opinion on the ZTE project, when the department allegedly did not even have a copy of the contract. Malaya 08/29/2007
Related Links
ZTE deal conceived in hotel `escapades???
Rep. Carlos Padilla links Elections chief Benjamin Abalos of being the patron of China's ZTE Corp.
Chinese loan caps sneaky ZTE deal
COMELEC silent on ‘sexcapade’
Abalos admits ZTE paid for China trips
Teves confirms Abalos's involvement in broadband deal
House minority mulls Abalos impeachment

China's ZTE Corp. built-in kickback of P10 billion

The Blue Ribbon Committee or Senate Committee on Accountability of Public Officers and Investigations should look deeper onto the ZTE Corp. P16 billion broadband project deals with the Philippine government. It appears to be over-priced by P10 billion. Happy hunting!

The Philippine Star

GOTCHA By JARIUS BONDOC

Why are they dealing with a firm like ZTE?

The Presidential Anti-Graft Commission fired its officer who started a probe of mighty Cabinet men. Vida Zora Bocar was axed last Monday. It was the same day I published her request for documents on the ZTE deal to beef up an investigation of DOTC Sec. Leandro Mendoza and Asec. Elmer Soneja. Superiors claimed Ms Bocar had violated the confidential nature of PAGC proceedings. She reasoned out — to no avail — that she had no control over what I wrote.

Ms Bocar did nothing wrong. In asking me for papers on my exposé, she was only doing her job as a thorough graft investigator. We had yet to meet.

But other forces were at play. Ms Bocar had begun looking into a potential P10-billion kickback from an unnecessary P16-billion project. That ruffled powerful feathers and endangered PAGC posts. One of those to be questioned is murmured to soon become executive secretary, to which the PAGC submits its reports and budget needs. Looking for an excuse to back out of the inquiry, PAGC higher-ups conveniently accused Ms Bocar of indiscretion. Will anyone now dare to submit evidence on the scam?

Pray that Ms Bocar’s bosses restrain themselves. May the words of Luke (3:14) touch them: “And the soldiers likewise demanded of him, saying, ‘and what shall we do?’ And he said unto them, ‘Do violence to no man, neither accuse any falsely, and be content with your wages.’”

* * *

Thrilled by its P16-billion telecom deal with the government, ZTE Corp. of China said it is bullish on RP. And so it is “investing in other” local industries: mining, rubber, agri-business.

The implication is that the P16 billion ZTE will supply in the form of broadband gear is its initial investment. It is far from true. Government will borrow from a Chinese bank the P16 billion to be paid to ZTE. Thus, it isn’t new money coming in; it is unnecessary money for a superfluous project. Existing telecom firms in Manila can provide the broadband service to the government. Yet with the ZTE deal, generations of Filipinos will have to repay a loan for a likely white elephant. And the loan amount has a built-in kickback of P10 billion for the Philippine approvers.

That is the same modus operandi ZTE employs in other countries. It comes in doling big cash to public officials in exchange for juicy contracts. Fortunately for people in other lands, ZTE has been exposed and driven out. Only in the Philippines is it being welcomed with open arms by a government that doesn’t know any better. Or does it?

I had written in a previous column that ZTE messed things up in Mexico, Ecuador, Ethiopia and Indonesia (Gotcha, 25 April 2007). Since then, more news items from around the world have detailed ZTE’s scams.

ZTE’s country manager in Liberia and his co-conspirators have been indicted for bribery. The ZTE man reportedly bribed regulators to ease out the real winner of a telecom project bidding. He also falsified bid papers to make it appear that ZTE was China’s largest telecom supplier, when it is only third. A report on the case says that ZTE violated corporate laws not only of Liberia but also of China against unfair competition.

A similar probe broke out in Libya. ZTE submitted false claims of track record and technical skill. Two of the fake papers reportedly contain the forged signatures of a private telecom executive in Manila and a junta leader in Burma.

The use of a false Burmese connection was cheeky. ZTE presently is being investigated also in Burma for corrupting a general who doubles as minister of post and communication. The officer had contracted ZTE to supply a $150-million system for 300,000 phone lines. The amount, to be borrowed from a Chinese bank, was ten times the real cost of the project, according to industry experts. Another ZTE contract for a million phone lines in another Southeast Asian country cost $30 million, a report from Bangkok stated.

Earlier ZTE indictments in Ecuador and Ethiopia also were for graft and bribery. In Indonesia the company is charged with price dumping.

The most celebrated ZTE case is in Mexico City, where residents have accused the mayor of addled priorities. The official had commissioned ZTE for high-speed Internet to 8.7 million citizens, plus broadband “hotspots” linking government offices and thousands of street surveillance cameras. Mexicans groan that what they need instead is water and electricity.

In Manila six business groups have urged President Arroyo to cancel the P16-billion deal signed by DOTC Sec. Leandro Mendoza with ZTE on Apr. 21. Executives and economists said the money could be better used building 36,000 classrooms, or 6,000 rural health clinics, or 120,000 artesian wells. Mendoza has yet to make the contract public, though.

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E-mail: jariusbondoc@workmail.com

Signed RP-China telecom contract stolen