Blue Ribbon seeks graft raps vs FG, others in ZTE mess

(Updated 11:48 p.m.) The Senate blue ribbon committee has recommended the filing of graft charges against First Gentleman Jose Miguel "Mike" Arroyo and other personalities involved in the alleged bribery surrounding the $329-million National Broadband Network (NBN) project the government entered with China's ZTE Corp. in April 2007. In a press conference Tuesday, committee chairman Sen. Richard Gordon said there is no doubt that Mr. Arroyo had dipped his hands on the government project. “He was where people who are participants to the project converged," he said. GMANews.TV tried contacting Mr. Arroyo's lawyer, Ruy Rondain, but he could not be reached. No charges however were recommended for President Gloria Macapagal Arroyo, but Gordon said she should explain why she did not immediately act on the alleged bribery when it was brought to her attention. Gordon said President Arroyo could be held liable for the culpable violation of the Constitution, which could be a ground for an impeachment complaint.
He said President Arroyo violated Article VII, Section 5 of the Constitution which provides that the President should “preserve and defend its Constitution, execute its laws, do justice to every man" and Section 17 which states "the President shall have control of all the executive departments, bureaus and offices." “Her acts in this case reveal that her performance of presidential duty has been wanting," Gordon said. As of posting time, only five of the 17 committee members had signed the report: Gordon, Senate Minority Leader Aquilino Pimentel Jr, Senators Joker Arroyo, Edgardo Angara and Gregorio Honasan II. The report lacks four signatures as nine are needed to make it official. Malacañang quickly defended the President. "It is not true that the President did not act on the report by then (National Economic Development Authority head Romulo Neri) that there was an attempt to bribe him," said Press Secretary Cerge Remonde in a text message. Remonde said the Philippine National Police (PNP) investigated the allegation and found that it was "inconclusive." President Arroyo scrapped the deal after reports on the bribery surfaced. The NBN project aimed to connect every government office to each other, thus reducing the cost of communication and reducing the need for travel. Others involved Also recommended to be charged are Neri, supposed whistle blowers Rodolfo "Jun" Lozada and Jose "Joey" De Venecia III, his father Pangasinan Rep. Jose de Venecia Jr., former Commission on Elections chair Benjamin Abalos, Transportation and Communications secretary Leandro Mendoza and assistant secretaries Elmer Soneja and Lorenzo Formoso. [See: Abalos, Neri face corruption charges over ZTE-NBN mess] Neri testified during one of the committee's 13 hearings that Abalos offered him a P200 million bribe to push for ZTE Corp. while the younger De Venecia, whose company was bidding for the NBN project, said Abalos also offered him $10 million to back out from the project. Gordon said that based on the committee's findings, the personalities violated Republic Act No. 3019 or the Anti-Graft and Corrupt Practices Act. The government officials involved the case were accused of violating RA 6713 or the Code of Conduct and Ethical Standard for Public Officials and Employees. The committee also recommended charges of violation of Article 150 of the Revised Penal Code against Environment Secretary Lito Atienza and former deputy executive secretary Huberto Gaite in connection with the alleged attempt by Malacañang to prevent Lozada from testifying in the hearings on the case by sending him abroad. Aside from violation of RA 3019, charges of violation of the Civil Service Law were also recommended against Lozada for taking an active role in the NBN project when he was the head of the Philippine Forest Corporation, which was under NEDA. “Mister Lozada, even if he had no official standing or formal official authority to do so, continued to meet with the ZTE representatives over lunch and dinner. (He) admitted that he was not officially contracted as a consultant of NEDA," Gordon said. Neri was also recommended to be charged because instead of stopping the NBN project, he instructed Lozada to "protect" it because of its "political sponsors." Rep. De Venecia meanwhile was recommended charged for allegedly using his position to push for the company of his son. “Secretary Leandro Mendoza testified that Mr De Venecia Jr invited him for breakfast at this home where the latter introduced him to his son, Mr Jose de Venecia III. Mr De Venecia Jr then informed him (Mendoza) that his son was a project proponent for the national broadband network," Gordon said. During that time, Mendoza allegedly sought the help of Rep. De Venecia, then speaker of the House of Representatives, because his son was running in the 2007 elections. He also endorsed the younger De Venecia to the technical working group of the NBN project of the DOTC. Gordon noted that there was an “unbelievably hyperefficient government at work or a fast and speedy express to ensure commissions" in the Department of Transportation and Communications (DOTC) courtesy of Soneja, head of the department's bids and awards committee. He said Soneja was in many meetings and was part of the overzealous process to approve the project, while Formoso "seems to have a very prominent hand in the controversy." "He can be seen in the Comelec office with then chairman Abalos," Gordon said. Ombudsman recommendation The 127-page report was in contrast with the recommendation of the Office of the Ombudsman last August, which dismissed the complaint against the First Gentleman for lack of probable cause, and which dropped President Gloria Macapagal Arroyo as respondent in the complaint due to presidential immunity from legal suits. "The panel has not been presented with convincing and solid evidence directly or indirectly linking respondent Jose Miguel Arroyo in the project," the Ombudsman's decision read. But Gordon said the Ombudsman erred in dismissing the case against President Arroyor on the mere pretext of presidential immunity from suit. He said what the Ombudsman should have done was to investigate and make findings for transmittal to the House of Representatives, if an impeachment would have been warranted, rather than a blanket statement of exculpation because of supposed immunity. “It is not for the Ombudsman to make a ruling as to immunity, but for the House to decide what to do once it receives the transmittal. Neither was it for the Ombudsman to say that there is no more impeachment process to be had because of the one-year ban. It is for the House to make that ruling," Gordon said.
"Shocked" Lozada told GMANews.TV that he was "shocked" to learn that he was included in the list of those recommended to be charged by the blue ribbon committee. "I didn't know what kind of investigation they had. So I'm shocked," he said. The younger De Venecia for his part downplayed the report and accused Gordon of using the the issue for his political survival. He also criticized Gordon for including him and Lozada in the case, saying it would set a bad precedent to future whistle blowers. "(Gordon is) playing safe. Hilaw ang report (and) self-serving. It's for his political career," he said. Gordon meanwhile stood by his committee's report and expressed confidence that it would not discourage other whistle blowers from coming out and disclosing government anomalies. “It will not discourage whistle blowers. That is the reason we will create a whistle blower bill of rights. We must live in a country that is accountable and besides we listened to them," he said. He noted that the younger De Venecia squealed only after his company failed to get the NBN contract. - GMANews.TV