GOTCHA By Jarius Bondoc, The Philippine Star, Monday, May 19, 2008
Here’s a timeline of events enfolding the needless yet overpriced DOTC-ZTE deal. The linear exhibit can help investigators analyze the crime and the culpable.
May 9 — ZTE takes interest in “CommNet”, asks Alvarion Ltd. to quote fixed WiMAX, an infant technology DOTC later adopts for NBN. DOTC-ZTE contract would jack up Alvarion unit prices three to four times.
June 2 — NEDA refers “CommNet” to CICT, to meld with other government telecom projects.
June 5 — NEDA Sec. Neri and Trade Sec. Favila sign MOU with
June 30 — DILG tells NEDA: “CommNet” no longer a priority.
July 12 — Favila, authorized by PGMA, signs MOU with ZTE veep Yu Yong (president, ZTE International) on various projects, including NBN. Witnesses: ZTE chair Hou Weigui, presidential chief of staff Mike Defensor.
Sept. 14 — Joey de Venecia’s Amsterdam Holdings Inc. expresses to NEDA interest in NBN thru “Orion Network”.
Sept. 18 — NEDA compares Arescom’s $135m with two ZTE unofficial NBN proposals, for $273m and $304.9m. Signing ZTE papers are Howard Xue, and consultants Leo San Miguel and Dante Madriaga. “
Oct. 10 — Joey submits “Orion” as $240m B-O-T investment.
Oct. 3rd week — “Greedy Group ++” receives $1m down payment.
Nov. 1 — PGMA arrives
Nov. 2 — PGMA, with FG, Speaker JDV and Comelec’s Abalos motor to Shenzhen, breakfast and golf with ZTE execs, tour ZTE headquarters and lunch with more execs.
Nov. 21 — CICT chief Sales presents NBN concept to PGMA, Cabinet. PGMA insists to Neri it should be B-O-T, privately funded, no government subsidy or outlay.
Dec. 2 — Chinese Amb. Li Jinjun informs Defensor: China Eximbank will provide credit for NBN; Ministry of Commerce designates ZTE as prime contractor.
Dec. 27 — Abalos invites Joey to meet ZTE execs at Kempinski Hotel-Shenzhen to show their “partnership”. Joey incensed by mention of dad’s name and seeing $130m commission in $262m proposal. In attendance: Yu Yong, Fan Yang, ZTE execs; Ruben Reyes, San Miguel, Quirino dela Torre, Jimmy Paz. More meetings of Joey, Abalos and ZTE would take place in next two months.
Jan. 14 — Election Period begins, government banned from awarding contracts till
Feb. 2007 — Abalos calls Joey and Jun Lozada separately, says he had wiretapped their conversations and knows what they’re saying about him.
Feb. 28 — DOTC technical working group completes study of ZTE and AHI proposals.
Feb. 2007 — Over breakfast at Wack-Wack (with Abalos, Reyes, San Miguel, dela Torre, Paz) FG tells Joey to “back off” NBN deal.
Mar. 2007 — During golf game at Wack-Wack, Abalos tells Neri, “Sec, may 200 ka rito,” which he interprets as P200m bribe to approve NBN as NEDA sec-gen. “Greedy Group” receives $10m from ZTE.
Mar. 6 —
Mar. 29 — In joint meeting, NEDA-ICC approves and NEDA Board (PGMA presiding) confirms ZTE deal of P16.474b ($329.48m @ $1:P50). Neri informs Amb. Li Jinjun.
Apr. 16 — Neri asks Amb. Li: expedite NBN loan, for DOTC-ZTE signing during PGMA trip to Boao,
Apr. 19 — Neri endorses NBN to Bo Xilai and Eximbank chair Li Ruogu, plus DOTC’s need for loan of $343m (P16.474b @ $1:P48).
Apr. 20 — Neri writes again to Bo and Li Ruogu stating amount for financing. Only difference is he mentions Dec. 2 letter of Amb. Li to Defensor. Amb. Kristie Kenney questions “undue haste” in awarding NBN, to detriment of
Apr. 21 — PGMA leaves bedside of very sick FG to witness DOTC-ZTE signing by Mendoza, Yu Yong. Malacañang news release, datelined Boao, states PGMA “came and went like a thief in the night, bringing with her an avalanche of Chinese investments.” It did not state that $329.5m for NBN was loan, not investment.
May 2007 — “Greedy Group” receives $30m from ZTE.
June 20 — Under pressure to produce contract, Mendoza and Asec Lorenzo Formoso claim that the only two copies of RP and
July 26 — DOJ defends DOTC-ZTE contract. By law, DOJ opinion should have come before contract signing, when B-O-T was dropped in favor of negotiated deal with G-to-G loan.
* * *
