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Wednesday, February 27, 2008

 

CBCP rejects resign calls

New broadband witness links President Arroyo, her husband to broadband scandal

By Efren L. Danao, Senior Reporter

The influential Catholic Bishops’ Conference of the Philippines (CBCP) thumbed down calls for President Gloria Arroyo to resign, even as a new Senate witness said she and her husband were to get kickbacks in the ZTE deal.

A new witness linked her and her husband, Jose Miguel Arroyo, to the aborted project, saying they stand to receive part of the $41 million in advances given by the Chinese firm ZTE Corp. for its approval.

The new witness said the First Couple were supposed to receive 25 percent of the project overprice.

The latest allegations against President Arroyo and her husband seemed not to convince the country’s Catholic bishops into asking the Chief Executive to step down. The bishops said they are leaving the matter to the decision of the people.

In a six-point pastoral statement resulting from their 10-hour meeting also on Wednesday, the bishops instead sought the revocation of Executive Order 464, which bars Cabinet and security officials from testifying in congressional probes without permission from the President.

Deputy Press Secretary Anthony Golez said the government will look into the lifting of the executive order.

In the pastoral statement, the bishops scored what it called as the prevalent  culture of corruption in the government.

 “We urge the President and all branches of government to take the lead in combating corruption wherever it is found,” the statement said.

The bishops appealed to the senators and the Ombudsman, who are investigating the broadband deal, “to use their distinct and different powers of inquiry into alleged corruption cases not for their own interests but for the common good.”

They also called on the media to be “positive resource of seeking the truth and combating corruption by objective reporting without bias and partiality, selective and conscientious reporting of fact.”

 Dante Madriaga, a former consultant of ZTE that was awarded the project, said  President Arroyo had to go to China in March 2007 even if Mr. Arroyo was sick because ZTE had threatened not to give any more advances unless they personally see her at the project signing.

Madriaga, who claimed to have designed the broadband project and was involved in it every day until March 2007, added that the Filipino brokers of the project had boasted of Malacanang protection after some government functionaries expressed opposition to the project.

He identified the Filipino brokers as former Chairman Benjamin Abalos Sr. of the Commission on Elections, Leo San Miguel, retired Gen. Quirino de la Torre and Ruben Reyes. Madriaga said  Reyes is a golfing buddy of Abalos. It was Reyes who took in dela Torre, a former comptroller of the Philippine National Police, and San Miguel. He said San Miguel, whom he had known beforehand, was the one who recruited him to work for the ZTE project.

Advances made in three tranches

Madriaga told the Senate blue-ribbon committee that the $41 million in advances for the broadband project’s approval was given in three tranches.

“The first tranche was $1 million, given in end-August 2006 for representation,” he said.

Madriaga claimed that dela Torre and San Miguel did not receive anything from the initial advance.

“Only Abalos and Reyes partook of the $1 million,” he said.

The second tranche totaled $10 million, given by ZTE after the approval of the project by the National Economic and Development Authority (NEDA).

Madriaga said $5 million was given to the First Couple, $2.5 million to “government men,” whom he identified as Cabinet members. The remaining $2.5 million was divided by the “greedy group.”

In an earlier hearing, former NEDA Secretary General Romulo Neri testified that Abalos had tried to bribe him with P200 million for the approval of the broadband project.

The third tranche of $30 million, given after the signing of the contract in China that was personally witnessed by the President, was used to finance the campaign of administration candidates in the 2007 elections.

Project cost escalates from greed

Madriaga said the “greedy group” had also asked for $5 million from ZTE to secure the cooperation of Jose de Venecia 3rd of Amsterdam Holdings Inc., the company that was also bidding for the broadband project.

“They did not get the $5 million because Joey (de Venecia) walked out of the meeting in China,” he added.

De Venecia said he left after a day in China last December after learning that Abalos was asking for an overprice of $100 million.

Madriaga said  the Chinese were irritated that the group could not even handle one person, referring to de Venecia.

Madriaga also claimed that the true project cost was $98 or $99 million, and that the First Couple would get 25 percent of the overprice of about $230 million. He said  his source was San Miguel, his immediate superior.

Madriaga added that  the project cost became that high because of the “greed’ of the Filipino brokers. He said ZTE would have contented itself with a markup of only 25 to 30 percent, but demanded equal share each time the Filipino group wanted to increase the cost.

   

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