Arroyo: Bribery over ZTE deal 'uncorroborated'

(Updated 5:49 p.m.) President Gloria Macapagal Arroyo on Tuesday said "discreet" internal investigations were unable to affirm reports of massive payoffs involving the multimillion-dollar National Broadband Network (NBN) and Cyber Education Projects (CEP). "When we learned of alleged bribery attempt in connection with the broadband projects, we instructed that the matter be discreetly investigated. The results of the investigations were reported as uncorroborated," President Arroyo said. The President delivered the statement on the eve of the third Senate hearing into the $329.48-million contract with China's ZTE Corp. First Gentleman Jose Miguel Arroyo, who was implicated in the controversy, has begged off from the proceedings. He went on an trip to Spain. Taking a dig at the Senate proceedings, Mrs Arroyo said: "All branches of government must ensure that vested interests do not exploit our democracy to block our development." She added: "We proceeded with the preliminary processes regarding the project because we need to keep our good relations with China, even as we consulted with their highest authorities about a possible deferment. We announced the deferment as soon as they indicated that they will try to understand our predicament." President Arroyo said a special panel has been created to oversee projects under the China official development assistance (ODA) program. Heading the China Projects Oversights Panel is Trade and Industry Secretary Peter Favila. Cerge Remonde, head of the Presidential Management Staff (PMS), and Budget Secretary Rolando Andaya will also be part of the group. Mrs Arroyo said a church leader and a representative of the Union of Local Authorities of the Philippines (Ulap)will be invited to panel. The NBN and the $460-million CEP were supposed to be funded through loans from the Chinese government. Mrs Arroyo maintained Tuesday that the suspension order against the two projects stemmed from "political criticisms." While saying that the government was "committed" to its investments, Mrs Arroyo said the rise of China in the global stage comes as a "significant opportunity" for the Philippines. However, she expressed frustration that the suspending the two projects created a "gap" in the NBN and cyber education aspects in her ten-point agenda. Transportation and Communications Secretary Leandro Mendoza, who signed in behalf of the Philippines for the ZTE contract, was tasked to coordinate with telecoms firms on on how reduce phone, fax, and online expenses. Businessman Jose "Joey" de Venecia III, co-owner of losing project proponent Amsterdam Holdings Inc, claimed that the ZTE deal was padded by as much as $130 million to accommodate kickbacks. In a related development, Iloilo Vice Gov. Rolex Suplico urged Neri to spill the beans at the Senate hearing on Wednesday, saying this was a moment of truth for the CHED chairman. "Now is the time for Secretary Neri to show the Filipino people his mettle as a true public servant. He needs to tell the truth about what he knows in this controversial and onerous contract," Suplico said. Suplico has challenged the legality of the ZTE contract before the Supreme Court. His motion was consolidated with a similar plea lodged by De Venecia's AHI. "Secretary Neri must not shirk from his duty at this point. His knowledge of the shenanigans of the personalities involved in this onerous contract is needed to help the institutions of our government resolve this controversy in favor of protecting the interest of our people," Suplico said. - GMANews.TV