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Wednesday, September 12, 2007

 

High Court stops broadband deal

By Jomar Canlas Reporter

The Supreme Court issued a temporary restraining order on Tuesday that stops the controversial $329-million broadband deal given to ZTE Corp. from pushing through.

“A TRO was issued by the Supreme Court en banc after the deliberation held on Tuesday,” said Atty. Jose Midas Marquez, the High Court’s public information office chief. “This is to avoid any injury that could be caused if the contract shall be pursued.”

The restraining order is for an indefinite period, but the Court asked the government to comment in 10 days. The National Economic and Development Authority (NEDA) and the Department of Transportation and Communications (DOTC) are respondents in the case, but they are to be represented by the Office of the Solicitor General.

On Monday Jose “Joey” de Venecia 3rd, son of House Speaker Jose de Venecia Jr., filed a petition with the Supreme Court asking it to compel government to disclose the contract signed with ZTE on April 21.

That petition follows a similar Supreme Court case filed by former Iloilo congressman, now Vice-Gov. Rolex Suplico. Reports have it that his and de Venecia’s petitions will be consolidated.

The younger de Venecia is the co-founder and major shareholder of Amsterdam Holdings Inc. (AHI), which competed but failed to clinch the broadband deal given to ZTE of China. Before that deal was signed, de Venecia said he was offered a $10-million bribe by Comelec Chairman Benjamin Abalos to back off the project.

Abalos, who dismissed the allegations as false, announced that he was filing a case of his own against de Venecia.

In the Supreme Court petition, de Venecia asked the Court for access to the signed contract to scrutinize it for possible anomalies.

Meanwhile, the House of Representatives was planning to hold a question hour on the broadband deal despite the Court’s restraining order.

“The House is not the one being issued of a TRO, so I don’t think it is illegal to proceed with the question hour,” said the House majority leader, Rep. Arthur Defensor of Iloilo.

Invited to the question hour are Trade Secretary Peter Favilla and Transportation and Communications Secretary Leandro Mendoza.

But a late development on Tuesday may prevent the question hour from pushing through.

Favilla, who earlier said he would attend the questioned hour, cancelled his appearance upon instructions of Malaca­ñang. In a letter to Speaker Jose de Venecia Jr. dated September 11, Favilla said, “The President has not granted the undersigned permission to attend the said question hour in accordance with Section 22, Article 6 of the Constitution,” or a Cabinet official’s discretion whether to attend or not attend the question hour.

Mendoza never confirmed his attendance.

   

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