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Mike Arroyo back in RP as ZTE controversy flares anew


Controversies linked to Jose Miguel “Mike" Arroyo

Rodolfo Noel I. Lozada Jr.'s statement linking First Gentleman Mike Arroyo to the ZTE deal is just one of several controversies that have hounded the President's husband.

Alleged P50-million payola for telecoms franchise bills

In July 2001, Veronica "Bing" Rodrigo, former correspondence secretary and friend of President Arroyo, alleged that the First Gentleman received a P50-million bribe for the President to recall her veto of the franchise bills of the Philippine Communication Clearinghouse and APC Wireless Interface Network. Rodrigo retracted her accusations a few days later.

Alleged use of PCSO funds as campaign funds

In October 2001, Robert Rivero, axed consultant of Philippine Charity Sweepstakes Office, alleged that First Gentleman Mike Arroyo used PCSO funds in the campaign of certain senatorial candidates and to bribe the media. He claimed that FG Arroyo paid P20.5 million to Bombo Radyo and Radio Mindanao Network; the PCSO and lotto draw announcements did not air in these stations, although some commentators aired pro-administration commentaries. The PCSO publicity department denied Rivero's accusations.

Designation as OFW envoy

In December 2002, President Arroyo designated Mike Arroyo as an OFW envoy so he could represent her in the countries she could not visit. However, critics assailed Arroyo's announcement when they learned that his activities as OFW envoy could be funded by a proposed overseas workers legal assistance fund. They feared that the Arroyo couple would use the funds for her 2004 campaign.

While the President did not recall her husband's designation, the first gentleman voluntarily resigned.

Jose Pidal exposé

Sen. Panfilo Lacson's Jose Pidal expose in 2003 further cast First Gentleman Arroyo in bad light. Lacson accused First Gentleman Arroyo of maintaining secret bank accounts to launder money from campaign contributions for the 1998 vice presidential bid of Gloria Arroyo.

First Gentleman Arroyo denied the allegations. His brother, Ignacio "Iggy" Arroyo took up the cudgels for him and claimed to be "Jose Pidal" before clamming up and invoking his "right to privacy" during a Senate investigation.

Friend's involvement in importation of rotten rice

Indian trader Kishore Hemlani, allegedly a close friend of First Gentleman Arroyo, also figured that year in a contract involving the importation of 600,000 metric tons of rotten rice worth P9.5 million from India.

Stay in an expensive Las Vegas suite

In 2005, First Gentleman Arroyo drew criticism for staying in a $20,000-a-night MGM Grand Villa in Las Vegas, Nevada, during a Manny Pacquiao-Erik Morales boxing match. Arroyo’s camp said the accommodation was complimentary and not paid for by public funds.

Alleged receipt of jueteng payola

In the same year, witnesses at the Senate hearings on jueteng claimed that First Gentleman Arroyo received protection money for the illegal numbers game. The First Gentleman denied the allegations and left the country momentarily to help "remove distractions and doubts from people’s minds" on President Arroyo's ability to run the government. The Palace, then embattled with both the jueteng and "Hello Garci" controversies, dismissed the accusations against the First Gentleman as mere concoctions by those who wanted to oust the President.

Friend's involvement in fertilizer fund scam

In 2006, the Senate wrapped up a series of hearings on the fertilizer fund scam and concluded that First Gentleman Arroyo's close friend and fellow Makati Rotarian Agriculture Undersecretary Jocelyn “Joc-Joc" Bolante diverted agricultural funds to the 2004 electoral campaign of President Arroyo.

Alleged existence of multi-million dollar German bank account

Later that year, then opposition Rep. Alan Peter Cayetano claimed that a member of the Arroyo family maintained a bank account in Germany amounting to hundreds of millions of dollars. First Gentleman Arroyo flew to Germany and secured a certification from the bank to disprove Cayetano's claims. Upon his return, sought Cayetano's expulsion from Congress.

- GMA News Research

First Gentleman Jose Miguel "Mike" Arroyo quietly arrived in the country Wednesday night, hours before former Philippine Forest Corporation head Rodolfo Noel Lozada Jr implicated him in the controversial ZTE broadband deal. Reports reaching GMANews.TV said Mr Arroyo arrived at the Ninoy Aquino International Airport (NAIA) at 6:34 p.m. Wednesday on board a Boeing 777 airplane of Cathay Pacific Airlines flight CX 903. The plane reportedly came from Europe via Hong Kong. The report said the First Gentleman was welcomed by NAIA General Manager Alfonso Cusi and NAIA assistant deputy for security retired Gen. Angel Atutubo at the Gate 7 of the said airport. Mr Arroyo reportedly did not have any trouble with the Immigration and was able to claim his baggage immediately. Abalos's $130 million 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 Lozada (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. (Read transcript of Lozada’s exposé) "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. 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. You, animal! At the time, he said he was in Negros Oriental when Abalos called him and asked him if he knew what he was doing. (Hear Lozada’s exposé) "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. 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. Call FG 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 North Rail loan agreement, that was the last meeting I had with the chairman," he said. - GMANews.TV