Senate to grill Cabinet men on basis of ZTE deal suspension

(Update, 6:27 p.m.) The Senate will grill Cabinet members on the reason behind the suspension of the $329.4-million broadband deal with Zhong Xing Telecommunications Equipment (ZTE) Corp., when the hearing on the controversial project resumes on Wednesday. Senate Defense Committee Chairman Rodolfo Biazon on Sunday said the suspension of the controversial deal was not the solution to the problem as the transaction with ZTE could be revived any time. “Kung ano ang suspension siguro mapapaliwanag sa investigation. Ano ang ibig sabihin niyan? Ano ibig sabihin ng suspension (We expect the Cabinet members to explain the reason for the suspension. What does it imply? What message does Malacañang want to convey with the suspension)?" Biazon said in an interview on dzXL radio. He said that with the irregularities surrounding the deal, a suspension was not enough and the entire thing should have been scrapped instead. Biazon’s committee is investigating the deal along with the Senate Blue Ribbon committee under Alan Peter Cayetano and trade committee under Manuel Roxas II. “Hindi pa nakabaon, suspendido eh. Ibig sabihin tigil muna usapan hanggang sa susunod na panahon? Teka muna, hindi solution 'yan (The deal is not dead, just suspended. Does Malacañang plan to revive it once the heat dies down? Wait a minute. That’s not the solution to the problem)," Biazon said. Romulo Neri, chairman of the Commission on Higher Education is expected to attend Wednesday's Senate inquiry. Neri, considered a key figure in the mess, headed the National Economic and Development Authority (NEDA) when the deal was signed. Also expected to attend the hearing is Transportation and Communications Secretary Leandro Mendoza. He signed the NBN deal with ZTE Vice President Yu Yong last April 21 in Baoa, China, in ceremonies witnessed by President Gloria Macapagal Arroyo. Confused Senate President Manuel Villar Jr on Sunday said he was confused by Mrs Arroyo's suspension order. The Supreme Court already suspended the deal on September 11 through a temporary restraining order. "Medyo nalilito ako, gusto muna naming liwanagin ‘yan. Baka kasi nililito lamang tayo n’yan, (I’m a bit confused, we want to have that suspension order clarified. Who knows, we could have been confused intentionally)," he said. Malacañang did not explain the basis of President Arroyo’s suspension order. Trade and Industry Secretary Peter Favila on Saturday said that he was just instructed by Mrs Arroyo to have the deal suspended. He invoked “executive privilege" when he refused answering media queries on the basis of the order. Also, Press Secretary Ignacio Bunye did not fully explain the reason behind Mrs Arroyo's directive. He only said the Chinese government understood the President's move. It was not yet clear what deal was ordered suspended by Mrs Arroyo because based on the testimony of Palace officials during last week’s Senate inquiry, the deal did not yet have an executive agreement but only a supply contract. Charges Meanwhile, Senator Lacson said government officials involved in the alleged anomalous deal were in a no-win situation, regardless of whether the deal was an executive agreement or a contract. “Either way, may sabit. Kung kontrata bakit di nag-bidding? Kung executive agreement, bakit pumirma na walang loan agreement. Ang nauna, kung walang bidding, violation of RA 9184 or government procurement act (Either way, they will face charges. If it was a contract, why was there no bidding, as required by the Government Procurement Act?)," Lacson said Sunday in an interview over dzBB radio. Kung executive agreement, ang na-violate ang Constitution, na dapat ipasa ng Monetary Board kasi loan (If it was an executive agreement, the deal was signed without a loan agreement that was approved by the Monetary Board, as required by the Constitution)," he said. “Maraming violation…Omnibus Election Code, Procurement Act, Constitution, Anti-Red Tape Act. Napakarami. Kung bibilangin mo napakarami, patong-patong na kaso involved dito (They face charges for violating the Election Code, the Procurement Act, the Anti-Red Tape Act. If you sit down and count, you’ll see that these officials face a string of charges)," he added. Junk deal Calls for the scrapping of the broadband project mounted with a debt watchdog warning that the suspension of the deal might have been done to derail the Senate investigation. “Is the decision intended to stop the ongoing Senate Blue Ribbon Committee hearing on the stinking ZTE deal? The temporary suspension is highly suspicious. We don’t want it just suspended, we want it junked!" FDC President Ana Maria Nemenzo said in a statement. “Regardless of who the personalities are involved in this scandal, the people want to know the flaws of our laws when it comes to foreign borrowings and contract agreements which only put the country deeper in debt and the Filipino people at the losing end," Nemenzo said. In calling for the investigation, Nemenzo said the Senate should focus on how political power and influence were used to facilitate multi-million-dollar projects like the ZTE deal. FDC also called on the Senate to investigate the Cyber Education Project (CEP), the biggest among the five multi-million-dollar contracts that the Philippine government lost during a still unsolved theft in China. The $460-million CEP, contracted with Chinese firm Tsinghua Tongfang Nuctech Co. (Nuctech), seeks to use a separate information technology (IT) backbone dependent on satellite transmission, a very expensive medium, to beam educational video materials to the country’s remotest public elementary and high schools. It was Favila, on behalf of the Department of Education (DepEd), who signed the contract for the CEP with Dr. Kang Ke Jung, of Tsinghua, on April 21, the same day the ZTE deal was inked. “According to reports, Nuctech is a commercial offshoot of China’s top science and engineering school Tsinghua University headed by a son of Chinese President Hu Jintao," FDC said. - GMANews.TV