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Lozada finally surfaces, links Abalos, Big Mike to ZTE mess


ZTE controversy timeline April 2007: Transportation and Communications Secretary Leandro Mendoza and ZTE Corp. Vice President Yu Yong entered into a US$ 329.5 million contract for a national broadband network (NBN) that will improve government communications capabilities. (OP) August 29, 2007: Nueva Vizcaya Rep. Carlos Padilla disclosed in a privilege speech that COMELEC Chairman Benjamin Abalos met with ZTE officials in China weeks before April 2007, apparently to broker for the NBN project: "Apparently, Chairman Abalos' unofficial trips to China courtesy of ZTE Corporation and his golf games with the officers of ZTE Corporation can hardly be characterized as just friendly and totally innocuous. He was a man on a mission. Could the mission be the US $329 million NBN project?" (copy of privilege speech, iNEWS) Padilla noted that there were two other private entities which signified their intention to build the NBN for the government. The project cost in these private companies' proposals were cheaper than ZTE's. (copy of privilege speech) August 30, 2007: Abalos denied brokering for the National Broadband Network project despite admitting he knows some officials in ZTE Corp. He admitted making four trips to China and playing golf there, but denied reports that he lobbied for the ZTE deal in exchange for money and sex. (www.gmanews.tv) September 5, 2007: Sen. Aquilino Pimentel Jr. filed a resolution calling for a Senate investigation into the circumstances leading to the approval of the broadband contract with ZTE Corp. (Senate) September 10, 2007: In an affidavit, Jose De Venecia III* claimed that he was with Abalos in China when the latter met with ZTE officials. He claimed he heard Abalos demand for money from the ZTE officials. (Jose de Venecia III's affidavit) *De Venecia III is a majority shareholder of Amsterdam Holdings, Inc.. AHI submitted an unsolicited proposal to DOTC on the NBN project. De Venecia III is the son of House Speaker Jose de Venecia Jr. (Jose de Venecia III's affidavit, www.gmanews.tv) September 11, 2007: The Supreme Court en banc issued a temporary restraining order against the implementation of the controversial NBN contract between the Philippines and Chinese firm ZTE Corp. (www.gmanews.tv) September 18, 2007: Testifying during a Senate hearing on the ZTE controversy, de Venecia III said FG Arroyo told him to "back off" from pursuing the multi-million dollar national broadband network project. September 20, 2007: Most cabinet members turned up at the Senate to watch the continuation of the Senate hearing on the ZTE controversy. DOTC Leandro Mendoza was able to attend the hearing, but former NEDA Director General Romulo Neri failed to show up because he was sick. September 22, 2007: President Arroyo suspended the ZTE deal. September 26, 2007: Neri and Abalos faced off at the Senate hearing. Neri testified that Abalos told him "may 200 ka dito" 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. September 27, 2007: The Senate continued its hearing with UP professors as invited resource speakers. September 28, 2007: Iloilo Vice Governor Rolex Suplico filed an impeachment complaint against Abalos at the House of Representatives. October 1, 2007: Abalos announced his resignation as COMELEC chairman. October 2, 2007: In a meeting in Shanghai, China, President Arroyo informed Chinese President Hu Jintao of her "difficult decision" to cancel ZTE Corp.'s contract for the NBN project. October 5, 2007: Atty. Roel Pulido filed an impeachment complaint against President Arroyo over her alleged involvement in the ZTE controversy. The complaint was endorsed by 4th District of Laguna Rep. Edgar San Luis. October 9, 2007: AKBAYAN filed a criminal complaint against Abalos before the Office of the Ombudsman. Sources: GMA News, GMANews.tv, OP, Senate, Carlos Padilla's privilege speech, de Venecia III's affidavit- GMA News Research

(Updated 7 a.m.) While it started off as a sensible project, all hell over the $329.5-million broadband deal with ZTE Corp. of China broke loose due to millions of dollars in "commissions." This in a nutshell was how engineer Rodolfo Noel Lozada Jr. (profile of Lozada) described the mess over the deal, which he said was highlighted with a "furious exchange of words" and threats to his life. "I guess the trouble started when chairman Abalos wanted to protect his $130-million - how shall I put this - commission on the project," Lozada said at a press conference at the La Salle Greenhills in Mandaluyong City. He confirmed the role of former poll chairman Benjamin Abalos in the mess, recalling one instance where Abalos "conferred" with First Gentleman Jose Miguel Arroyo. (Read transcript of Lozada’s exposé) Lozada said Abalos at one point even indicated he would push through with the project by himself. Abalos quit his post last October after former socio-economic secretary Romulo Neri said he offered him a P200-million bribe in exchange for the approval of the project. Lozada surfaced at the La Salle Greenhills campus and held a press conference at 2 a.m., where he bared what he knew about the project. He said he quit the ZTE project Jan. 18 last year, following a phone call from Abalos where he threatened to have him killed. At the time, he said he was in Negros Oriental when Abalos called him and asked him if he knew what he was doing. "Alam mo ba malapit ako sa military? Opo. Alam mo ba malapit ako sa intel? Opo. Then he started cursing (He asked me if I knew he is close to the military and with the intelligence community. When I answered yes, he started cursing)," he said. (Hear Lozada’s exposé) He said Abalos told him he had a compact disc of Lozada's phone conversations with businessman Jose de Venecia III. "Hayop kayo traydor kayo ... Huwag ka magpapakita sa akin, hayop ka, sa Wack-Wack o sa Mandaluyong, ipapapatay kita (You animal, you traitor, don't show your face here in Wack-Wack or anywhere in Mandaluyong or I'll have you killed)," he recalled Abalos telling him. "That was when I quit the project. (I told Neri that) I don't think this project was worth risking my life for," he added. Lozada also recalled telling Abalos earlier that the ZTE project can be done only through build-operate-transfer instead of a loan. Abalos then said he would call up the First Gentleman. "Pare, narito ang taga-NEDA sa tabi ko di pwede utang project (Friend, the NEDA guy is here and is insisting we cannot have the project on a loan basis)," he recalled Abalos saying over the phone. He said he could not hear the voice from the other end. When he hung up, Abalos told Lozada, "kung ganyan kayo kausap, ang hirap kayo kausap, kalimutan nyo na lang usapan natin (If you deal that way, let's just forget it)." Lozada also recalled a "furious exchange of words" during his last meeting with Abalos, before Abalos' angry phone call. At the time, he said officials of ZTE were demanding from Abalos that the NBN project will be done on a loan basis, "a la NorthRail." "They kept on mentioning a la NorthRail loan agreement, that was the last meeting I had with the chairman," he said. - GMANews.TV
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