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Abalos ‘main proponent’ of ZTE deal, witness tells court


A witness on Thursday told an anti-graft court that former Commission on Elections (Comelec) chairman Benjamin Abalos threw his weight around during the negotiations for the $329-million national broadband network deal with Chinese firm ZTE Corp. allegedly to have his $130-million "commission" protected. According to Rodolfo Noel Lozada, this was the reason why the other bidder, Amsterdam Holdings Inc. under Jose "Joey" de Venecia III, son of former House Speaker Jose de Venecia Jr., did not get the NBN project. “Joey said there’s no way to accommodate $130 million in his book of accounts," Lozada said. “Abalos, by all means, is actually the primary proponent. By the way he conducted himself throughout, he was the main proponent," he added. Lozada, former president of Philippine Forest Corp., was testifying before the Sandiganbayan Fifth Division for the graft case filed against Abalos in connection with the botched broadband deal. Lozada also confirmed the P200-million bribe Abalos allegedly offered to Romulo Neri, then head of the National Economic and Development Authority (NEDA), the agency that approves government deals. Abalos has pleaded not guilty in the case and denied that he tried to bribe Neri to approve the deal.


Meeting at Wack Wack Under direct examination, Lozada told Acting Deputy Special Prosecutor John Turalba that he learned of the bribe offer during a meeting with Abalos at the Wack Wack Golf and Country Club in Mandaluyong City. “It was after one of our meetings… in Wack Wack. Chairman Abalos said the day after the ZTE deal [was] approved, he will give the two hundred million to Secretary Neri," said Lozada, who in 2008 accused the government of kidnapping him to prevent him from spilling the beans regarding the ZTE controversy in a Senate investigation. Lozada said Neri appeared indifferent when he informed him about what Abalos said about the bribe. “I did not recall any violent reaction," Lozada said. “He (Neri) did not say anything." Turalba then asked Lozada if he is familiar with the adage "Silence means acquiescence," to which Lozada answered, “Yes." Objections Neri’s counsel, Paul Lentejas, objected to Turalba’s line of questioning, but the prosecutor said he would no longer pursue the subject and would proceed to the next question. During cross examination, Lozada denied that Neri asked for “commissions" during the negotiations for the NBN project. He also said Neri didn’t seem to have any special interest in the undertaking. Neri was accused by the prosecution of having an “unlawful pecuniary interest" in the transaction. Turalba, during re-direct, asked Lozada if he saw any unusual “actuation" from Neri during the negotiations, but Lentejas objected, saying the question called on the witness to speculate. After consulting with other members of the court, Associate Justice Roland B. Jurado overruled Lentejas and instructed Lozada to answer. “I believe that the project was approved under the administration of Secretary Neri at NEDA," Lozada said. Verbal abuse Lozada said he decided to drop any involvement with the ZTE-NBN deal in January 17 or 18, 2007 after he received a threatening call allegedly from Abalos while he was in Dumaguete City. Abalos was reportedly furious and claimed that he has a CD containing recorded phone conversations between Lozada and Neri. Lozada said he was subjected to verbal abuse and finally understood the extent of Abalos’ power and influence. “He was shouting, ‘P---- ina ka! Hayup kayong lahat! Tinatraydor nyo ako!’ [You sonofa*. You're all b*s. You're double-crossing me!] At the time I could not understand what he was saying until he told me he was holding a CD recording of our (Neri’s and Lozada’s) phone conversations. I got really scared," Lozada told the court. At the first opportunity, he went to Neri and said he is letting go of the project evaluation at once. “I think Romy [Neri] was also scared for me. He understood [my decision to withdraw]," Lozada said. Still friends After the hearing, Neri and Lozada approached each other and shook hands. Interviewed by reporters, Neri said he did not feel like Lozada’s testimony caused him a lot of damage. “I don’t think so. He’s still a good friend," he said. Lozada told reporters that he had already explained to Neri that he is prepared to answer all questions with everything he knows about the ZTE-NBN deal. He said he understands Neri’s decision to withhold information that could directly incriminate former President Gloria Macapagal-Arroyo and her husband, Jose Miguel Arroyo, in the alleged anomalous transaction. Lozada said Neri was trying to “protect some people" and asked the media’s help to expose whoever is pressuring the former NEDA chief. “He [Neri] knows something but he’s just trying to protect some people. Maybe you in the media should begin asking what hold these people have on Secretary Neri that he is so scared of," he said in a separate interview. - KBK/JV, GMANews.TV
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