Wednesday, September 26, 2007

ZTE probe needed for political reform

GOTCHA By Jarius Bondoc, The Philippine Star, Wednesday, September 26, 2007

Ah so. The reason MalacaƱang suspended the contentious ZTE deal Saturday is so that the Senate in turn would end its inquiry. Acting Justice Sec. Agnes Devanadera and Presidential Legal Counsel Sergio Apostol now admit so after three days.

It was calculated. The executive looked silly shelving something the Supreme Court already had restrained weeks ago. More so since Trade Sec. Peter Favila did the announcing, instead of Transport Sec. Larry Mendoza as contract signatory with China’s ZTE Corp. in April. But Palace strategists likely felt it was a lesser evil than having more awkward details springing from more hearings on the national broadband network project.

What has emerged so far from two hearings? In the first, whistle-blowing telecoms man Joey de Venecia testified to sleaze in highest places. Powerful men who should have nothing to do with the project — Comelec chief Ben Abalos and presidential spouse Mike Arroyo — allegedly bumped him off the bidding in favor of bribe-giving ZTE. Senators pried into Joey’s possible sour-grape motive, but he assured he was no long interested in the deal. They asked too if he was not lawbreaking by contracting with the government as the son of Speaker Jose de Venecia Jr., but he cited coverage by two of three exceptions based on advice by the law firm of one of the senators. Commentators and senators alike found Joey credible.

The second hearing was disastrous — for the administration. Only three Cabinet members were invited — Mendoza, Favila, and Finance Sec. Gary Teves — yet 15 others trooped to the Senate in a bully-like show of force. The most awaited former economic planning chief Romy Neri, whom Abalos reportedly had tried to bribe with P200 million, was a no-show. Under grilling Mendoza and his technical man Lorenzo Formoso could not justify the NBN’s need or cost. At one point, this pesky columnist had to refute Formoso. Sen. Mar Roxas was asking him how many of the 45,000 barangays would be “wired” as the basis of the $330-million price. For five minutes Formoso kept saying he either didn’t know such basic figures or would just submit them in future dates. Whereupon I showed the senators a hard copy of Formoso’s PowerPoint presentation of June 20 at an Ateneo-Makati forum, and it said 23,000 barangays — or only half the country. Worst of all, Mendoza, Teves and Formoso admitted having met on at least four occasions with ZTE execs and discussing the NBN in front of Abalos — in the latter’s Comelec office or Wack Wack golf turf. Yet they quickly and incredibly claimed too that the election bigwig was never part of the deal.

So now MalacaƱang factotums want the Senate to stop its hearings. They insist that the Supreme Court after all is already studying the legality of the contract.

But the Senate tri-committee probe has other aims. The Blue Ribbon is determining breaches of law, which may bolster or expand charges in the Ombudsman. The committee on national defense is eyeing potential breach of state security in an exclusive government telecom setup, supplied by a foreign firm that is half owned by generals. The committee on trade and commerce could craft remedial legislation to force government totally out of telecoms competition, or to give priority to public bidding over so-called negotiated executive agreements with foreign governments.

Most of the senators are members of the three committees, and also head other relevant committees. Participating in the hearings, they may spot other angles to explore. The committee on foreign affairs could review all 33 deals signed with China in January-April and see if those that require tied loans are needed to begin with. Most of all, the committee on electoral reform may craft laws to prevent election officers from participating in state contracts or vacationing too often as elections draw near, and to select only persons of tested integrity for the sensitive posts.

In short, the investigation of the ZTE scam could and should set off a wave of reforms — aside, of course, from criminal charges. After all, it’s turning out that if a fertilizer scam prefaced the 2004 election, then a ZTE scam accompanied the 2007 balloting.

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Congratulations to Director General Avelino Razon on his long-awaited ascent to the highest position in the Philippine National Police.

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E-mail: jariusbondoc@workmail.com