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Saturday, March 01, 2008

 

DOJ wants coercive powers 
for probe into broadband deal

By Jomar Canlas, Reporter

The Justice department sought coercive powers in its investigation into the aborted broadband deal after being snubbed several times by those whom it had invited to testify on alleged irregularities in the $330-million project.

Deputy Executive Secretary Manuel Gaite and Erwin Santos, officer in charge of the Philippine Forest Corp., did not show up in Friday’s scheduled hearing.

Gaite is accused of having given a witness to the alleged irregularities P500,000 in cash for supposed expenses in Hong Kong. The witness, Rodolfo “Jun” Lozada Jr., later returned the money to the Senate. He earlier admitted that he flew to Hong Kong to evade a warrant of arrest that the senators had issued against him.

Santos had accused Lozada of influence-peddling in Philippine Forest, of which Lozada was a former CEO.

While he wanted to cooperate in the Justice department’s investigation, Gaite said in a letter he had sent through his lawyer, he cannot contribute anything to the case.

“We respectfully decline the invitation. Our client has had no participation whatsoever, either in the negotiations with ZTE Corp. pertaining to the [national broadband network] project or in the signing of the supply agreement,” according to Gaite’s letter, referring to ZTE Corp. of China that won the bidding for the project over two other proponents.

Santos also snubbed the hearing, explaining that he had a prior engagement with investors.

The no-shows irked the Justice panel handling the probe.

Undersecretary Ernesto Pineda, who heads the group, said they will ask Justice Secretary Raul Gonzalez to propose to President Gloria Arroyo to issue an executive order that will compel Gaite and Santos to attend or risk being cited for contempt.

“If there can be an executive order, we can coerce some witnesses to come under pain of some penalty. We will request Secretary Gonzalez if we can be equipped with such coercive powers,” Pineda added.

Lozada and Romulo Neri also snubbed another scheduled hearing last week.

Lozada, supposedly a key witness to alleged brokering for kickbacks from the broadband deal, said he does not recognize the authority of the Justice department because of the government’s alleged biases against him.

Neri, acting chairman of the Commission on Higher Education, backed out supposedly after reading reports that the department was considering filing a case against him.

He was the director general of the National Economic and Development Authority when the broadband deal was being negotiated. According to him, he told President Arroyo of an alleged attempt to bribe him in exchange for his approval of the project. He said he also told the President about the offer and that she in turn told him not to accept the kickback but for him to approve the project anyway.

   

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