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By Angelo S. Samonte, Reporter
President Gloria Arroyo told
China’s president she will “stop” the controversial National
Broadband Network deal awarded to ZTE Corp. of China, according to a
report by the TV network GMA-7.
President Hu Jintao, whom Mrs.
Arroyo met Tuesday in Shanghai, “understood and accepted the
decision of the Chief Executive,” Press Secretary Ignacio Bunye
was quoted as saying by the TV network, which posted the story on
its website late Tuesday.
“The President explained the
difficult decision not to continue with the NBN contract and the
President counted on the good relations between our two countries
for understanding,” Bunye said. “We are gratified that President
Hu offered understanding when he said that our relationship is in
very good shape and the Philippines has been a great ally.”
The $330-million broadband
project has been the subject of much controversy, prompting the
Senate to launch an investigation into allegations of overpricing
and bribes offered to a Cabinet member and the son of the House
Speaker.
Malacañang conducted its own
discreet investigation and announced they did not find any
wrongdoing.
Despite that, however, the Palace
suspended the broadband project on September 22, along with another
Chinese deal, the Cyber Education Project.
The Palace decision followed a
temporary restraining order on the ZTE deal issued by Supreme Court.
Just this week, the government had defended the merits of the deal
before the High Tribunal.
On the day President Arroyo left,
her husband, Jose Miguel “Mike” Arroyo, returned to the
Philippines. He talked to reporters for the first time about his
alleged involvement in the broadband controversy.
Mr. Arroyo was accused by Jose
“Joey” De Venecia 3rd of threatening him to “back off” the
deal at a meeting in Wack Wack Golf and Country Club.
Mr. Arroyo admitted to meeting De
Venecia, who is the son of his namesake, House Speaker Jose De
Venecia Jr. But Mr. Arroyo denied threatening the younger De Venecia,
whose company, Amsterdam Holdings Inc. (AHI), failed to bag the
broadband project that was awarded to ZTE.
The younger De Venecia has also
accused former Commission on Elections chairman, Benjamin Abalos, of
offering him a $10-million bribe to withdraw from the project.
Abalos, who announced his
resignation Monday, was also accused of offering P200 million (about
$4.3 million) to former socioeconomic planning chief Romulo Neri,
who is now chairman of the Commission on Higher Education (CHED).
Abalos has denied those
allegations. He is expected to file a P20-million perjury case
against Joey De Venecia and Neri.
Building bridges
Earlier, Sec. Bunye told
journalists covering the President’s trip that Mrs. Arroyo looks
forward to a stronger Philippine engagement with China and India
economically, culturally and diplomatically.
“The President has always
expressed the belief that the more bridges we cross the better for
the country and for our people. And this is one of the kinds of
bridges that the President is now crossing,” Bunye said in an
ambush interview at the main lobby of the Eton Hotel, the Chief
Executive’s official residence while in Shanghai.
Citing the importance of the
President’s trip to China, Bunye said it was a distinct honor for
her to be asked personally by President Hu to open the 2007 World
Summer Games Special Olympics for mentally disabled persons.
The 52-strong Philippine
contingent to the Special Olympics is the biggest among the
participating countries. The Filipinos will take part in
competitions, including basketball, football, badminton, gymnastics,
power lifting, athletics, aquatics and table tennis.
The President will be joined at
the opening of the Special Olympics by world leaders from academe,
government, mass media and other sectors involved in promoting the
interests of people with disabilities.
After her two-day China visit,
the President will proceed to India, where she is scheduled to meet
with Indian President Pratibha Patil, the first female president of
India, Prime Minister Manmohan Singh and Sonia Gandhi, chairman of
the ruling Congress Party.
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