Philippine National Broadband Network controversy
Encyclopedia
The Philippine National Broadband Network controversy (also referred to as the NBN/ZTE deal or NBN/ZTE mess) involved allegations of corruption
in the awarding of a US$329 million construction contract to Chinese
telecommunications firm ZTE
for the proposed government-managed National Broadband Network (NBN).
The contract with ZTE was signed on April 20, 2007 in Hainan
, China. Following the emergence of irregularities, President
Gloria Macapagal-Arroyo
cancelled the National Broadband Network project in October 2007. On July 14, 2008, the Supreme Court dismissed all three petitions questioning the constitutionality
of the national broadband deal, saying the petitions became moot
when the project was cancelled.
In April 2007, Philippine Department of Transportation and Communications (DOTC) Secretary Leandro Mendoza
and ZTE
Vice President Yu Yong entered into a US$329.5 million contract for a National Broadband Network (NBN) that would improve government communications capabilities.
On August 29, Nueva Vizcaya
Congressman Carlos Padilla hinted in a privilege speech that Commission on Elections
(COMELEC) Chairman Benjamin Abalos
went to China
to broker a deal for the NBN project. The following day, Abalos denied brokering for the NBN project, although he did admit going to China four times.
On September 5, Senator
Aquilino Pimentel called for a Senate investigation about the NBN project. As a result, three committees held joint hearings about the issue: the Accountability of Public Officers & Investigations (aka the Blue Ribbon Committee) headed by Alan Peter Cayetano
, the National Defense and Security committee headed by Rodolfo Biazon
and the Trade and Commerce committee headed by Mar Roxas
.
Jose de Venecia, Jr.
, testified on September 10 that he was with Abalos in China and that he heard Abalos "demand money" from ZTE officials. The younger de Venecia was president of Amsterdam Holdings, the company that lost its bid to ZTE for the NBN project.
On September 11, the Supreme Court of the Philippines
promulgated a temporary restraining order (TRO) on the $329-million national broadband
network
(NBN) contract between the Philippine government and China
's ZTE based on separate certiorari
suits filed by Iloilo
Vice-Governor and former Representative Rolex Suplico and Joey de Venecia III. Under political pressure from the opposition group, the court gave ZTE fifteen days to comment on the injunction
. Suplico, a former opposition congressman, alleged that the agreement was sealed without public bidding and violated the Telecoms Policy Act, which required privatization of all telecommunications facilities. Congressman Padilla sued DOTC and ZTE officials of violating the Anti-Graft and Corrupt Practices Act, the Telecommunications Policy Act, the Build-Operate-Transfer
(BOT) Act and the Government Procurement Act at the Office of the Ombudsman
. AHI also petitioned the Court to direct the DOTC to provide copies of the contract, since it should have won the same. The younger de Venecia testified on September 18 that Mike Arroyo, President
Gloria Macapagal-Arroyo
's husband, personally told him to "back off" from pursuing the NBN project.
Chairman) Romulo Neri
, who was sick. On September 22, 2007, president
Arroyo suspended the broadband contract with ZTE after the bribery scandal sparked major problems in her government.
Neri and Abalos finally faced each other on the September 26 Senate hearing; Neri testified that Abalos told him "Sec, may 200 ka dito (You have 200M pesos in this deal)" while playing golf at Wack Wack Golf Club; they had been discussing the ZTE deal at that time. Abalos denied making the apparent bribe attempt. Neri later invoked executive privilege
in response to some Senators' questions. He later shunned succeeding Senate hearings still citing executive privilege
On September 27, 2007, ZTE petitioned the Supreme Court
to lift the TRO alleging, in its urgent omnibus motion, inter alia, that the injunction
cost the company millions.
Abalos announced his resignation as COMELEC chairman on October 1; Resurreccion Borra
succeeded him as COMELEC chairman. President Arroyo on her October 2 trip to China, said to Chinese President
Hu Jintao
her "difficult decision" to cancel ZTE Corp.'s contract for the NBN project.
On May 26, 2008, a Supreme Court decision (Neri vs. Senate
) nullified the citation of contempt against Neri, ruling that conversations between Neri and President Arroyo are considered classified information.
. Meanwhile, House Speaker de Venecia lost a motion of confidence vote on February 5, which unseated him as House Speaker; his partymate at Lakas-CMD, Prospero Nograles
of Davao City
, succeeded him as speaker.
On February 5, as the Senate arresting team waited on the Ninoy Aquino International Airport
(NAIA) on Lozada's arrival, Lozada was taken by unidentified people "out of town" and Lozada's kin appealed for help on his whereabouts. On February 7, Lozada finally surfaced as police took him to La Salle Green Hills
, Mandaluyong City
. Lozada linked Mike Arroyo and Abalos to the ZTE scandal. On the same day, the Supreme Court stopped the Senate from arresting Neri, ordering a status quo; Neri then resurfaced after the threat of arrest was taken off.
The next day, on a Philippine Senate
hearing, Lozada confirmed his NEDA boss Romulo Neri's testimony that Commission on Elections
(COMELEC) chairman Benjamin Abalos
and Arroyo's husband Mike Arroyo were behind the kickbacks in the deal. Lozada's statement was made after he was "abducted" on the orders of Department of Environment and Natural Resources (DENR) secretary Lito Atienza
, Neri, former Presidential Management Staff head Michael Defensor, Secretary for Special Concerns Remedios Poblador and Deputy Executive Secretary Manuel Gaite.
On February 11, upon continuation of Senate hearings, the government denied on kidnapping Lozada. Lozada claimed he was driven around Metro Manila
and even reached Los Baños, Laguna
, before he was transported to the La Salle Green Hills
seminary. According to DENR Secretary Atienza, Lozada, who is his boss as the Philippine Forest Corp. is under the DENR, asked for his help as "he feared for his life" as he returned from Hong Kong. Joey de Venecia later claimed that ZTE advanced USD 1 million to Abalos; senators pointed out that this qualifies as "plunder" under Philippine criminal law since the advance was given when the foreign exchange was at about PHP
50 to $1, thus equaling the PHP 50 million floor for plunder.
Deputy Executive Secretary Manuel Gaite appeared on the February 26 hearing. He had previously said that the P
500,000 he gave to Lozada's brother was for Lozada's expenses while staying at Hong Kong. Gaite said he "can't rationally justify" the reason why he gave Lozada the hefty amount. He said that his action "was moved by my conscience and my faith." Lozada earlier claimed that the P500,000 was a bribe.
The Philippine Court of Appeals
dismissed Jun Lozada's writ of amparo petition for lack of evidence on his claim that there were threats to his life and security. On September 23, 2008, Lozada asked the Supreme Court of the Philippines
to re-open and reconsider his case, thereby arguing for the protection of his siblings, Violeta and Arturo.
Mike Defensor
, on July 4, 2008 filed a 6-page perjury
lawsuit Friday versus Rodolfo Noel Lozada
for "testifying under oath
that he had paid Lozada P 50,000 to change his statement that he was not kidnapped at the Ninoy Aquino International Airport
(NAIA) when he arrived from Hong Kong at the height of the Philippine National Broadband Network controversy (ZTE
Zhong Xing Telecommunication Equipment Company Limited scandal)."
subpoena
ed First Gentleman Mike Arroyo, Neri, the de Venecias and Abalos to hear their side of the story. The case was filed by former vice president Teofisto Guingona, Jr., several lawyers, Fr. Jose Dizon and party-list Representatives Joel Villanueva and Ana Theresia Hontiveros-Baraquel, among others.
Hu Jintao
. On July 14, 2008, the Supreme Court dismissed all three petitions questioning the constitutionality
of the national broadband deal, saying the petitions became moot
when President Arroyo decided to cancel the project.
and Senator Panfilo Lacson
have called for President Arroyo's resignation, while Senate President Manuel Villar and senator Alan Peter Cayetano
called for her to take a leave of absence. Vice President Noli de Castro
has said that President Arroyo and other government officials "should be charged" if they would be found directly involved in the alleged anomalies.
The Catholic Bishops' Conference of the Philippines
called an emergency meeting on February 25, 2007 wherein they formed a collective stance which refused to call for Arroyo's resignation, instead calling on her to be part of a "moral reform process".
On February 29, 2008, a rally was held in the Makati City
central business district to protest corruption and call for the resignation of President Arroyo. The rally's attendees, which included former Presidents Corazon Aquino
and Joseph Estrada
, were estimated by police and rally organizers to be around 100 people.
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
in the awarding of a US$329 million construction contract to Chinese
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
telecommunications firm ZTE
ZTE
ZTE Corporation formerly Zhongxing Telecommunication Equipment Corporation is a Chinese multinational telecommunications equipment and systems company headquartered in Shenzhen, China...
for the proposed government-managed National Broadband Network (NBN).
The contract with ZTE was signed on April 20, 2007 in Hainan
Hainan
Hainan is the smallest province of the People's Republic of China . Although the province comprises some two hundred islands scattered among three archipelagos off the southern coast, of its land mass is Hainan Island , from which the province takes its name...
, China. Following the emergence of irregularities, President
President of the Philippines
The President of the Philippines is the head of state and head of government of the Philippines. The president leads the executive branch of the Philippine government and is the commander-in-chief of the Armed Forces of the Philippines...
Gloria Macapagal-Arroyo
Gloria Macapagal-Arroyo
Gloria Macapagal-Arroyo is a Filipino politician who served as the 14th President of the Philippines from 2001 to 2010, as the 12th Vice President of the Philippines from 1998 to 2001, and is currently a member of the House of Representatives representing the 2nd District of Pampanga...
cancelled the National Broadband Network project in October 2007. On July 14, 2008, the Supreme Court dismissed all three petitions questioning the constitutionality
Constitutionality
Constitutionality is the condition of acting in accordance with an applicable constitution. Acts that are not in accordance with the rules laid down in the constitution are deemed to be ultra vires.-See also:*ultra vires*Company law*Constitutional law...
of the national broadband deal, saying the petitions became moot
Moot
Moot may refer to:* from Moot as an Old English language term for meeting:**Folkmoot**Jamtamót, the old assembly of Jämtland**Witenagemot, the High Council of Anglo-Saxon England...
when the project was cancelled.
Background
Leandro Mendoza
Leandro Ramos Mendoza, was the Philippine Executive Secretary, was born on March 24, 1946 in San Juan, Batangas.He finished his Bachelor of Science degree at the Philippine Military Academy; his Master of Arts in Public Management at the University of the Philippines - Visayas, Cebu City; and...
and ZTE
ZTE
ZTE Corporation formerly Zhongxing Telecommunication Equipment Corporation is a Chinese multinational telecommunications equipment and systems company headquartered in Shenzhen, China...
Vice President Yu Yong entered into a US$329.5 million contract for a National Broadband Network (NBN) that would improve government communications capabilities.
On August 29, Nueva Vizcaya
Nueva Vizcaya
Nueva Vizcaya is a province of the Philippines located in the Cagayan Valley region in Luzon. Its capital is Bayombong. It is bordered by, clockwise from the north, Ifugao, Isabela, Quirino, Aurora, Nueva Ecija, Pangasinan, and Benguet.-History, people and culture:The name was derived from the...
Congressman Carlos Padilla hinted in a privilege speech that Commission on Elections
Commission on Elections (Philippines)
The Commission on Elections, or COMELEC, is one of the three constitutional commissions of the Philippines. Its principal role is to enforce all laws and regulations relative to the conduct of elections, initiatives, referendums, and recalls....
(COMELEC) Chairman Benjamin Abalos
Benjamin Abalos
Benjamin S. Abalos, Sr. is a politician and is a former chairman of the Philippine Commission on Election. He was also a MMDA Chairman and Mandaluyong City Mayor. He is the father of current Mandaluyong City mayor Benjamin "Benhur" Abalos, Jr..-Early life:Benjamin Abalos was born into a poor...
went to China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
to broker a deal for the NBN project. The following day, Abalos denied brokering for the NBN project, although he did admit going to China four times.
On September 5, Senator
Senate of the Philippines
The Senate of the Philippines is the upper chamber of the bicameral legislature of the Philippines, the Congress of the Philippines...
Aquilino Pimentel called for a Senate investigation about the NBN project. As a result, three committees held joint hearings about the issue: the Accountability of Public Officers & Investigations (aka the Blue Ribbon Committee) headed by Alan Peter Cayetano
Alan Peter Cayetano
Alan Peter Schramm Cayetano is a senator from the Philippines.He was the congressional representative from the district of Taguig-Pateros for 9 years. He had a seven-point program for his Taguig-Pateros constituency in Metro Manila. He ran for senator on the May 14, 2007 Philippine elections under...
, the National Defense and Security committee headed by Rodolfo Biazon
Rodolfo Biazon
Rodolfo "Pong" Gaspar Biazon is a politician in the Philippines. He is a former Senator. He was elected Senator in the 1992 election for a term of 3 years. He was elected to his first six-year term in the 1998 election, and was re-elected in the 2004 election...
and the Trade and Commerce committee headed by Mar Roxas
Mar Roxas
Manuel "Mar" Araneta Roxas II is a former Senator of the Philippines. He is the son of former Senator Gerry Roxas, and the grandson of former President Manuel Roxas and industrialist J. Amado Araneta....
.
De Venecia's testimony
Jose "Joey" de Venecia III, son of House SpeakerSpeaker of the Philippine House of Representatives
The Speaker of the House of Representatives of the Philippines is the presiding officer of the lower house of Congress, the House of Representatives....
Jose de Venecia, Jr.
Jose de Venecia, Jr.
Jose Claveria de Venecia, Jr. also known as JDV or Joe De V is a former Speaker of the House of Representatives of the Philippines, serving from 1992 to 1998 and from 2001 to 2008. As Speaker, he was the fourth highest ranking official of the Philippines. He was the former president of the...
, testified on September 10 that he was with Abalos in China and that he heard Abalos "demand money" from ZTE officials. The younger de Venecia was president of Amsterdam Holdings, the company that lost its bid to ZTE for the NBN project.
On September 11, the Supreme Court of the Philippines
Supreme Court of the Philippines
The Supreme Court of the Philippines is the Philippines' highest judicial court, as well as the court of last resort. The court consists of 14 Associate Justices and 1 Chief Justice...
promulgated a temporary restraining order (TRO) on the $329-million national broadband
Broadband
The term broadband refers to a telecommunications signal or device of greater bandwidth, in some sense, than another standard or usual signal or device . Different criteria for "broad" have been applied in different contexts and at different times...
network
Computer network
A computer network, often simply referred to as a network, is a collection of hardware components and computers interconnected by communication channels that allow sharing of resources and information....
(NBN) contract between the Philippine government and China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
's ZTE based on separate certiorari
Certiorari
Certiorari is a type of writ seeking judicial review, recognized in U.S., Roman, English, Philippine, and other law. Certiorari is the present passive infinitive of the Latin certiorare...
suits filed by Iloilo
Iloilo
Iloilo is a province of the Philippines located in the Western Visayas region. Iloilo occupies the southeast portion of Panay Island and is bordered by Antique Province to the west and Capiz Province and the Jintotolo Channel to the north. Just off Iloilo's southeast coast is Guimaras Province,...
Vice-Governor and former Representative Rolex Suplico and Joey de Venecia III. Under political pressure from the opposition group, the court gave ZTE fifteen days to comment on the injunction
Injunction
An injunction is an equitable remedy in the form of a court order that requires a party to do or refrain from doing certain acts. A party that fails to comply with an injunction faces criminal or civil penalties and may have to pay damages or accept sanctions...
. Suplico, a former opposition congressman, alleged that the agreement was sealed without public bidding and violated the Telecoms Policy Act, which required privatization of all telecommunications facilities. Congressman Padilla sued DOTC and ZTE officials of violating the Anti-Graft and Corrupt Practices Act, the Telecommunications Policy Act, the Build-Operate-Transfer
Build-Operate-Transfer
Build-own-operate-transfer or build-operate-transfer is a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, and operate a facility stated in the concession contract...
(BOT) Act and the Government Procurement Act at the Office of the Ombudsman
Ombudsman
An ombudsman is a person who acts as a trusted intermediary between an organization and some internal or external constituency while representing not only but mostly the broad scope of constituent interests...
. AHI also petitioned the Court to direct the DOTC to provide copies of the contract, since it should have won the same. The younger de Venecia testified on September 18 that Mike Arroyo, President
President of the Philippines
The President of the Philippines is the head of state and head of government of the Philippines. The president leads the executive branch of the Philippine government and is the commander-in-chief of the Armed Forces of the Philippines...
Gloria Macapagal-Arroyo
Gloria Macapagal-Arroyo
Gloria Macapagal-Arroyo is a Filipino politician who served as the 14th President of the Philippines from 2001 to 2010, as the 12th Vice President of the Philippines from 1998 to 2001, and is currently a member of the House of Representatives representing the 2nd District of Pampanga...
's husband, personally told him to "back off" from pursuing the NBN project.
Neri's testimony
On the September 20 Senate hearing, Cabinet officials attended the hearing except for former National Economic and Development Authority (NEDA) Chairman (now Commission on Higher EducationCommission on Higher Education (Philippines)
The Commission on Higher Education of the Philippines, , abbreviated as CHED. The CHED is attached to the Office of the President for administrative purposes...
Chairman) Romulo Neri
Romulo Neri
Romulo Neri is a Filipino politician and former Director-General of the National Economic and Development Authority , acting secretary of Department of Budget and Management , chairperson of the Commission on Higher Education and President of Social Security System under former President Gloria...
, who was sick. On September 22, 2007, president
President of the Philippines
The President of the Philippines is the head of state and head of government of the Philippines. The president leads the executive branch of the Philippine government and is the commander-in-chief of the Armed Forces of the Philippines...
Arroyo suspended the broadband contract with ZTE after the bribery scandal sparked major problems in her government.
Neri and Abalos finally faced each other on the September 26 Senate hearing; Neri testified that Abalos told him "Sec, may 200 ka dito (You have 200M pesos in this deal)" while playing golf at Wack Wack Golf Club; they had been discussing the ZTE deal at that time. Abalos denied making the apparent bribe attempt. Neri later invoked executive privilege
Executive privilege
In the United States government, executive privilege is the power claimed by the President of the United States and other members of the executive branch to resist certain subpoenas and other interventions by the legislative and judicial branches of government...
in response to some Senators' questions. He later shunned succeeding Senate hearings still citing executive privilege
Executive privilege
In the United States government, executive privilege is the power claimed by the President of the United States and other members of the executive branch to resist certain subpoenas and other interventions by the legislative and judicial branches of government...
On September 27, 2007, ZTE petitioned the Supreme Court
Supreme Court of the Philippines
The Supreme Court of the Philippines is the Philippines' highest judicial court, as well as the court of last resort. The court consists of 14 Associate Justices and 1 Chief Justice...
to lift the TRO alleging, in its urgent omnibus motion, inter alia, that the injunction
Injunction
An injunction is an equitable remedy in the form of a court order that requires a party to do or refrain from doing certain acts. A party that fails to comply with an injunction faces criminal or civil penalties and may have to pay damages or accept sanctions...
cost the company millions.
Abalos announced his resignation as COMELEC chairman on October 1; Resurreccion Borra
Resurreccion Borra
Resurreccion Borra is a Filipino public servant who is a Career Executive Service Officer , a former commissioner and was the Acting Chairman of the Philippine Commission on Elections. He was the most senior Commissioner of COMELEC who has served the agency for over 44 years...
succeeded him as COMELEC chairman. President Arroyo on her October 2 trip to China, said to Chinese President
President of the People's Republic of China
The President of the People's Republic of China is a ceremonial office and a part of State organs under the National People's Congress and it is the head of state of the People's Republic of China . The office was created by the 1982 Constitution...
Hu Jintao
Hu Jintao
Hu Jintao is the current Paramount Leader of the People's Republic of China. He has held the titles of General Secretary of the Communist Party of China since 2002, President of the People's Republic of China since 2003, and Chairman of the Central Military Commission since 2004, succeeding Jiang...
her "difficult decision" to cancel ZTE Corp.'s contract for the NBN project.
On May 26, 2008, a Supreme Court decision (Neri vs. Senate
Neri vs. Senate
Neri vs. Senate Committee, et al. is a controversial ruling of the Supreme Court of the Philippines which affirmed the invocation of executive privilege by petitioner Romulo Neri, member of the Cabinet of President Gloria Macapagal-Arroyo, regarding questions asked during a Congressional inquiry on...
) nullified the citation of contempt against Neri, ruling that conversations between Neri and President Arroyo are considered classified information.
Lozada's kidnapping and testimony
On January 30, 2008, the Senate produced warrants of arrest to Neri and Rodolfo "Jun" Lozada, Jr., former chief executive officer of the government-run Philippine Forest Corporation and a consultant of the NEDA. Neri then went into hiding while Lozada skipped the Senate hearing and went to Hong KongHong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
. Meanwhile, House Speaker de Venecia lost a motion of confidence vote on February 5, which unseated him as House Speaker; his partymate at Lakas-CMD, Prospero Nograles
Prospero Nograles
Prospero C. Nograles is the former Speaker of the House of Representatives of the Philippines. He was elected as the Speaker of the House on February 5, 2008, the first ever elected Speaker from Mindanao in a hundred years in Philippine legislative history...
of Davao City
Davao City
The City of Davao is the largest city in the island of Mindanao in the Philippines. Its international airport and seaports are among the busiest cargo hubs in the Philippines....
, succeeded him as speaker.
On February 5, as the Senate arresting team waited on the Ninoy Aquino International Airport
Ninoy Aquino International Airport
The Ninoy Aquino International Airport or NAIA , also known as Manila International Airport , is the airport serving the general area of Manila and its surrounding metropolitan area...
(NAIA) on Lozada's arrival, Lozada was taken by unidentified people "out of town" and Lozada's kin appealed for help on his whereabouts. On February 7, Lozada finally surfaced as police took him to La Salle Green Hills
La Salle Green Hills
La Salle Green Hills is a private Catholic school exclusively for boys located on Ortigas Avenue, Mandaluyong City, Metro Manila, Philippines. It is run by the Roman Catholic Brothers of the Christian Schools- Philippine District. It was established in 1959 by the De La Salle Brothers led by the...
, Mandaluyong City
Mandaluyong City
The City of Mandaluyong is one of the cities and municipalities that comprise Metro Manila in the Philippines. It is bordered on the west by the country's capital, Manila, to the north by San Juan City, to the east by Quezon City and Pasig City, and by Makati City to the south...
. Lozada linked Mike Arroyo and Abalos to the ZTE scandal. On the same day, the Supreme Court stopped the Senate from arresting Neri, ordering a status quo; Neri then resurfaced after the threat of arrest was taken off.
The next day, on a Philippine Senate
Senate of the Philippines
The Senate of the Philippines is the upper chamber of the bicameral legislature of the Philippines, the Congress of the Philippines...
hearing, Lozada confirmed his NEDA boss Romulo Neri's testimony that Commission on Elections
Commission on Elections (Philippines)
The Commission on Elections, or COMELEC, is one of the three constitutional commissions of the Philippines. Its principal role is to enforce all laws and regulations relative to the conduct of elections, initiatives, referendums, and recalls....
(COMELEC) chairman Benjamin Abalos
Benjamin Abalos
Benjamin S. Abalos, Sr. is a politician and is a former chairman of the Philippine Commission on Election. He was also a MMDA Chairman and Mandaluyong City Mayor. He is the father of current Mandaluyong City mayor Benjamin "Benhur" Abalos, Jr..-Early life:Benjamin Abalos was born into a poor...
and Arroyo's husband Mike Arroyo were behind the kickbacks in the deal. Lozada's statement was made after he was "abducted" on the orders of Department of Environment and Natural Resources (DENR) secretary Lito Atienza
Lito Atienza
Jose Livioko Atienza, Jr. , commonly known by his nickname Lito Atienza, is the former city mayor of Manila and former secretary of the Department of Environment and Resources. He stepped down as mayor of Manila on June 30, 2007, after serving a three-year three-term limit for local government...
, Neri, former Presidential Management Staff head Michael Defensor, Secretary for Special Concerns Remedios Poblador and Deputy Executive Secretary Manuel Gaite.
On February 11, upon continuation of Senate hearings, the government denied on kidnapping Lozada. Lozada claimed he was driven around Metro Manila
Metro Manila
Metropolitan Manila , the National Capital Region , or simply Metro Manila, is the metropolitan region encompassing the City of Manila and its surrounding areas in the Philippines...
and even reached Los Baños, Laguna
Los Baños, Laguna
The Nature and Science City of Los Baños is a 1st class urban city in the province of Laguna, Philippines. According to the latest census, it has a population of 98,631 inhabitants in 17,030 households...
, before he was transported to the La Salle Green Hills
La Salle Green Hills
La Salle Green Hills is a private Catholic school exclusively for boys located on Ortigas Avenue, Mandaluyong City, Metro Manila, Philippines. It is run by the Roman Catholic Brothers of the Christian Schools- Philippine District. It was established in 1959 by the De La Salle Brothers led by the...
seminary. According to DENR Secretary Atienza, Lozada, who is his boss as the Philippine Forest Corp. is under the DENR, asked for his help as "he feared for his life" as he returned from Hong Kong. Joey de Venecia later claimed that ZTE advanced USD 1 million to Abalos; senators pointed out that this qualifies as "plunder" under Philippine criminal law since the advance was given when the foreign exchange was at about PHP
Philippine peso
The peso is the currency of the Philippines. It is subdivided into 100 centavos . Before 1967, the language used on the banknotes and coins was English and so "peso" was the name used...
50 to $1, thus equaling the PHP 50 million floor for plunder.
Deputy Executive Secretary Manuel Gaite appeared on the February 26 hearing. He had previously said that the P
Philippine peso
The peso is the currency of the Philippines. It is subdivided into 100 centavos . Before 1967, the language used on the banknotes and coins was English and so "peso" was the name used...
500,000 he gave to Lozada's brother was for Lozada's expenses while staying at Hong Kong. Gaite said he "can't rationally justify" the reason why he gave Lozada the hefty amount. He said that his action "was moved by my conscience and my faith." Lozada earlier claimed that the P500,000 was a bribe.
The Philippine Court of Appeals
Philippine Court of Appeals
The Court of Appeals of the Philippines is the Philippines' second highest judicial court, just after the Supreme Court. The court consists of 68 Associate Justices and 1 Presiding Justice...
dismissed Jun Lozada's writ of amparo petition for lack of evidence on his claim that there were threats to his life and security. On September 23, 2008, Lozada asked the Supreme Court of the Philippines
Supreme Court of the Philippines
The Supreme Court of the Philippines is the Philippines' highest judicial court, as well as the court of last resort. The court consists of 14 Associate Justices and 1 Chief Justice...
to re-open and reconsider his case, thereby arguing for the protection of his siblings, Violeta and Arturo.
Countersuit
Mike Defensor
Mike Defensor
Michael "Mike" Tan Defensor is a Filipino politician.He finished elementary, Bachelor of Arts in History, and Masters in Public Administration at the University of the Philippines. He finished his secondary education at Miles McKinley High School, Ohio, USA...
, on July 4, 2008 filed a 6-page perjury
Perjury
Perjury, also known as forswearing, is the willful act of swearing a false oath or affirmation to tell the truth, whether spoken or in writing, concerning matters material to a judicial proceeding. That is, the witness falsely promises to tell the truth about matters which affect the outcome of the...
lawsuit Friday versus Rodolfo Noel Lozada
Rodolfo Noel Lozada
Rodolfo Noel I. Lozada, Jr., CEO of the Philippine Forest Corporation, surfaced at the La Salle Greenhills campus early morning today and implicated former Commission on Elections chair Benjamin Abalos Sr and First Gentleman Jose Miguel Arroyo in the anomalous ZTE deal.Lozada is an electronics and...
for "testifying under oath
Oath
An oath is either a statement of fact or a promise calling upon something or someone that the oath maker considers sacred, usually God, as a witness to the binding nature of the promise or the truth of the statement of fact. To swear is to take an oath, to make a solemn vow...
that he had paid Lozada P 50,000 to change his statement that he was not kidnapped at the Ninoy Aquino International Airport
Ninoy Aquino International Airport
The Ninoy Aquino International Airport or NAIA , also known as Manila International Airport , is the airport serving the general area of Manila and its surrounding metropolitan area...
(NAIA) when he arrived from Hong Kong at the height of the Philippine National Broadband Network controversy (ZTE
ZTE
ZTE Corporation formerly Zhongxing Telecommunication Equipment Corporation is a Chinese multinational telecommunications equipment and systems company headquartered in Shenzhen, China...
Zhong Xing Telecommunication Equipment Company Limited scandal)."
Madriaga testimony
Also on the February 26 hearing, Dante Madriaga, a ZTE-employed engineer, claimed that USD 41 million was sought as "advances". ZTE then withheld more money, saying they needed to see President Arroyo's face at the signing of the contract.Ombudsman cases
The Ombudsman Ma. Merceditas N. GutierrezMa. Merceditas N. Gutierrez
Ma. Merceditas Navarro Gutierrez is a Filipino government official and Ombudsman of the Republic of the Philippines. She heads the powerful Ombudsman Office which investigates government officials accused of crimes. She was a two-time Justice Secretary of the Philippine Justice Department in 2002...
subpoena
Subpoena
A subpoena is a writ by a government agency, most often a court, that has authority to compel testimony by a witness or production of evidence under a penalty for failure. There are two common types of subpoena:...
ed First Gentleman Mike Arroyo, Neri, the de Venecias and Abalos to hear their side of the story. The case was filed by former vice president Teofisto Guingona, Jr., several lawyers, Fr. Jose Dizon and party-list Representatives Joel Villanueva and Ana Theresia Hontiveros-Baraquel, among others.
Judgment
President Arroyo decided to cancel the National Broadband Network project on October 2, 2007 in a meeting with Chinese PresidentPresident of the People's Republic of China
The President of the People's Republic of China is a ceremonial office and a part of State organs under the National People's Congress and it is the head of state of the People's Republic of China . The office was created by the 1982 Constitution...
Hu Jintao
Hu Jintao
Hu Jintao is the current Paramount Leader of the People's Republic of China. He has held the titles of General Secretary of the Communist Party of China since 2002, President of the People's Republic of China since 2003, and Chairman of the Central Military Commission since 2004, succeeding Jiang...
. On July 14, 2008, the Supreme Court dismissed all three petitions questioning the constitutionality
Constitutionality
Constitutionality is the condition of acting in accordance with an applicable constitution. Acts that are not in accordance with the rules laid down in the constitution are deemed to be ultra vires.-See also:*ultra vires*Company law*Constitutional law...
of the national broadband deal, saying the petitions became moot
Moot
Moot may refer to:* from Moot as an Old English language term for meeting:**Folkmoot**Jamtamót, the old assembly of Jämtland**Witenagemot, the High Council of Anglo-Saxon England...
when President Arroyo decided to cancel the project.
Reactions
Following the testimony of Jun Lozada, several sectors and prominent people such as Joey de VeneciaJoey de Venecia
Jose "Joey" P. de Venecia III is the eldest son of Jose de Venecia, Jr., the Philippines' former five-term Speaker of Congress. He received much attention in the Philippines as a whistleblower related to the corruption scandal surrounding the ZTE broadband project.-Early life:He was born in 1963...
and Senator Panfilo Lacson
Panfilo Lacson
Panfilo "Ping" Morena Lacson, Sr. is a Filipino politician. He was Director-General of the Philippine National Police from 1999 to 2001 and has been a member of the Philippine Senate since 2001.-Early life and education:...
have called for President Arroyo's resignation, while Senate President Manuel Villar and senator Alan Peter Cayetano
Alan Peter Cayetano
Alan Peter Schramm Cayetano is a senator from the Philippines.He was the congressional representative from the district of Taguig-Pateros for 9 years. He had a seven-point program for his Taguig-Pateros constituency in Metro Manila. He ran for senator on the May 14, 2007 Philippine elections under...
called for her to take a leave of absence. Vice President Noli de Castro
Noli de Castro
Manuel Leuterio de Castro, Jr. , better known as Noli de Castro or "Kabayan" Noli de Castro, was Vice President of the Philippines ....
has said that President Arroyo and other government officials "should be charged" if they would be found directly involved in the alleged anomalies.
The Catholic Bishops' Conference of the Philippines
Catholic Bishops' Conference of the Philippines
The Catholic Bishops' Conference of the Philippines is the official organization of the Catholic episcopacy in the Philippines. Archbishop Jose S. Palma of Cebu is the current president while Archbishop Socrates B. Villegas of Lingayen-Dagupan is the current Vice President. The CBCP has 99 active...
called an emergency meeting on February 25, 2007 wherein they formed a collective stance which refused to call for Arroyo's resignation, instead calling on her to be part of a "moral reform process".
On February 29, 2008, a rally was held in the Makati City
Makati City
The City of Makati is one of the 17 cities that make up Metro Manila, one of the most populous metropolitan areas in the world. Makati is the financial center of the Philippines and one of the major financial, commercial and economic hubs in Asia...
central business district to protest corruption and call for the resignation of President Arroyo. The rally's attendees, which included former Presidents Corazon Aquino
Corazon Aquino
Maria Corazon Sumulong Cojuangco-Aquino was the 11th President of the Philippines and the first woman to hold that office in Philippine history. She is best remembered for leading the 1986 People Power Revolution, which toppled Ferdinand Marcos and restored democracy in the Philippines...
and Joseph Estrada
Joseph Estrada
Joseph "Erap" Ejercito Estrada was the 13th President of the Philippines, serving from 1998 until 2001. Estrada was the first person in the Post-EDSA era to be elected both to the presidency and vice-presidency.Estrada gained popularity as a film actor, playing the lead role in over 100 films in...
, were estimated by police and rally organizers to be around 100 people.
External links
- http://www.aer.ph/index.php?option=com_content&task=blogcategory&id=90&Itemid=91Related policy papers and NBN contract review at Action For Economic ReformsAction For Economic ReformsAction for Economic Reforms is a Philippine non-government organization engaged in research and advocacy. It was founded in 1996 by a group of progressive scholars and activists as an "independent, reform-oriented and activist policy group"....
website] - De Venecia son’s team claims overprice in NBN deal - Experts report P8-B discrepancy, Inquirer.net
- The Madriaga file on broadband deal
- Derivation of the ZTE scandal $329 Million 'BUKOL', The so called dissection of $329 Million
- abs-cbnnews.com, The limits of executive privilege, By JUSTICE ANTONIO CARPIO
- newsbreak.com.ph, TIMELINE: Exposing the ZTE Overprice, 07 February 2008