Cayetano ‘reluctant’ to call probe into SouthRail

MANILA, Philippines - Sen. Alan Peter Cayetano, chairman of the Blue Ribbon Committee, is reluctant to call an investigation into the alleged overpriced South Railways project because of lack of witnesses. Senate witness Rodolfo Noel Lozada Jr had earlier claimed he was able to minimize graft in the $932-million SouthRail project, another anomaly-tainted deal of the Arroyo administration with China. He said he alerted authorities on the alleged padding of the cost of the project. He said those who are involved in the project were reprimanded. Cayetano said that despite the testimony of Lozada, with only the latter as the resource person or witness, his panel could not start the investigation. Besides, he said his panel is still focused on the investigation into the scandal surrounding the $329-million national broadband network government project with China’s ZTE Corp. Lozada, during his testimony, said it was Chinese businessman Anthony Wang who allegedly brokered for the project. He said Wang was supposed to receive a $70-million commission from the project. Cayetano said he would start public hearings on the SouthRail project after they finished their corruption investigation into the ZTE project. Aside from this, Cayetano said the panel is still collating data on the infamous “gift-giving" at the Malacañang grounds last October to local executives and congressmen. Pro-Arroyo lawmakers who attended the meeting allegedly received P200,000 to P500,000 from Palace officials. Earlier, Sen. Rodolfo Biazon said he wants the NorthRail and SouthRail projects investigated simultaneously. Meanwhile, Sen. Ana Consuelo “Jamby" Madrigal slammed Cayetano for his alleged refusal to call the investigation. She said that although it is only Lozada who had so far revealed the anomaly in the project, his testimony would be enough to start an investigation. “It is not number of witness that makes a Senate investigation credible; it is the quality of witnesses’ testimony," Madrigal said. Sen. Panfilo Lacson, who earlier filed a resolution to look into the SouthRail irregularities, said that Lozada actually succeeded in his task when the star witness was still a government official. "He managed or he succeeded in trimming it to $70 million instead of $128 million," he said of Lozada. According to the Philippine National Railways, the SouthRail project is divided into Phase I, which costs $627.8 million, and Phase II worth $304.2 million. Phase I will be for the rehabilitation of the 432-kilometer railway line from Calamba to Legazpi City, and Phase II covers the construction of a new railway line from Comun, Camalig, Albay to Matnog, Sorsogon, covering 135 kilometers. - GMANews.TV