Today, the hearing at the Senate on the ZTE-NBN deal, contract, executive agreement or whatever saw RP election commission boss Benjamin Abalos confronted by Senate Blue Ribbon panel on his participation in the broadband contract scam and pitted against Romulo Neri, the demoted NEDA chief and Joey de Venecia 3rd, son of Speaker of the House who first blew the lid off the scam as shown in this Inquirer picture.(The Inquirer photo caption says: WITNESSES ROW. Jose De Venecia III (far right) at the Senate with poll chief Benjamin Abalos (far left) at an inquiry on the controversial $329-million national broadband network deal with the Chinese company, ZTE Corp. Between them from left to right are Iloilo Vice Governor Rolex Suplico, Commission on Higher Education Chairman Romulo Neri, and journalist Jarius Bondoc. INQUIRER.NET/VERONICA UY)
My initial reactions to the the liveblog feed today by Manuel L Quezon III (most outstanding as usual), Attack of the Romulan:
Arroyo the senator seems to be the one who’s asked the more relevant questions.Pity other senators didn't pick up the line of questioning: what abalos doing brokering for a deal with a line agency very much outside his turf.Highly irregular indeed to say the least.
Even if I can’t see Abalos’ body language, his replies point to his being evasive, and much as one wants to give him benefit of doubt, the man is falling all over himself to be able to lie. (Fellow is a lawyer so knows how to parry questions - not seriously lawyerly in my book but definitely he seems to be trying to play to the gallery.)
One thing though, he can't erase the perception from even the most objective reader (ok, not me) that he brokered, fixed the deal for ZTE.
By deduction: To be able to go around Speaker Joe de Venecia for deals of this kind or that Speaker has shown interest in and seems to back (ok it’s his son’s), only another ‘bigger’, more powerful official can do that at election time; easy to dedeuce that among protagonists present, only Abalos could do that. The next would have been president.
Actually, if you want to be technical about it, it’s line agency that didn’t do its job properly - DoTC under Secretary Leandro Mendoza. How can DoTC be so sure that other govts can’t propose better loan terms if they didn’t ask other govts. All they have to do is inform embassies in Manila soliciting proposals. Embassies would have done job for them contacting industries. DoTC didn’t even have to get off its backside and proposals would be “pouring in”.
On top of which, economic post attachés in foreign embassies would have lobbied with their govt for back to back govt loans themselves to present to RP government (this is based on my personal professional experience serving in an executive capacity in a major foreign industry).
This is the only way to know if Chinese offer is good offer.In other words, however they want to slice this as being tied to China govt loan, etc., this ZTE deals smacks of corruption, not only financially but morally.
At the very least, RP govt line agency has been very negligent and NEDA has not been up to their task. At that level, it’s RP chief exec who should be blamed. Am trying to be very objective here and do not wish to accuse her of anything at this point save for gross negligence. She has command responsiblity. For one who is reputed to be micro management prone, she overlooked, and only god knows why, the flaws and gross negligence committed by her cabinet men in the performance of their tasks.
This whole RP NBN deal with the Chinese can be seen like this: ZTE deal is purely commercial transaction even if backed by their own govt banks (Chinese) so it’s not as if this deal is a national security treaty matter involving China that president cannot question or compare it with other possible offers from other countries.
What could have compelled her, the country's supposed CEO to overlook this option? Any way you look at it, this deal is and smells very, very fishy.
And really, even if I try my darnest best to be coldly analytical about this issue, I see corrupt hands in government at the highest echelons of powers dipping their fingers in govt treasury to take money out to put in their own personal, private banks which to me is thoroughly unacceptable behaviour!
UPDATE 26.09.07 8:50 pm Manila Time
Have been stuck in front of my computer monitor now for a good 2 hours clicking every 5 minutes to see the additional live blog feed by Mlq3 and by 8PM or right after reading one of his entries, I was feeling frustrated and so wrote on 26.09.07 8:08 pm (in Manolo Quezon's live feed comment portion):
If I were senator, I would ask Neri following:In conscience, deep in your heart of hearts, could you say as a respected technocrat (economist or whatever his title is or profession), that this contract or whatever it’s called, not disadvantageous to govt if only to refer to fact that from 262 million dollars, bloated to 330 million in a few months…Answer yes it is disadvantageous or no it’s not disadvantageous and explain why or why not.
Feeling more frustrated than ever because of the question-answers report that was being posted by Manolo (absolutely not his fault), I typed away at 26.09.07 8:23 pm :
Senators MUST ASK QUESTIONS THAT WOULD MAKE THE GUY SPEAK AT LENGTH, TO EXPLAIN…I get the impression reading Quezon’s live feed that they cut him off and only ask stupid quesitions so they can in turn show off to the gallery!!! Dumb thing to do if they want to get Neri to expose what he knows, then they are not doing it properly.The guy is a technocrat so let him explain his side of the story by making him lecture if need be - and that’s when you pounce on what he said if it’s clear he’s hiding something.Going round and round serves no purpose.And if he falters, Senator should merely say, “Go on… you were a professor (or still a professor of something?), so please feel free to lecture us on why you think it’s disadvantageous or not disadvantageous to govt…”
Manolo's livefeed has just ended; he posts this:
(My comment: personally I haven’t been so close to agreeing to the abolition of the Senate in my life as I am now: stupid, stupid childish people! But then what would be worse is if these stupid, stupid childish people weren’t in office and left things entirely in the hands of the usual suspects in the House and the Executive; but really, stupid, childish, undisciplined, grandstanding, small-minded people could have come together and asked the relevant questions in 2 hours and pinned Neri, Abalos, and everyone including the President to the wall!!)
Am not at all surprised! I'm was following his liveblogging feed virtually live myself and already was feeling this way - frustrated, am not surprised he is furious!
CONCLUSION
I am furious, livid… Neri is nothing but a worm of the tapeworm variety.
Equally, we have our VENERABLE, HONOURABLE but stupid senators to blame - they had their chance and they idiotically blew it. Why? Because they were just playing up to the gallery, parbleu!
No wonder, Brenda walked out - she knew her colleagues were dumb; just the same, she should have stayed to do the right thing but as ever, she is just one unpredictable broad with stability problems!
Damn, damn, damn!
4 comments:
MBW, you should have watched the whole thing live on TV (i dunno if you have access to a TV yesterday though). MLQ3 could only type as much. madami ka pa sanang napanood, lahat may entertainment value haha
Hi Lapsapan,
I would've liked to see the real show on the Senate floor!
Fortunately we've got the livefeed by Manolo Quezon.
Entertainment value? I bet!
The cast of corrupt characters in the China Eximbank-financed Philippine anomalous government projects are almost identical. The over-priced $503.4-M North Rail project really stinks. The 42-km railroad track cost about t $10-M per km. for the 100-year old diesel technology train. North Rail covers Monumento to Calumpit, Bulacan.
Transportation and Communication Sec. Mendoza is the big boss of North Rail project and PNR. The late Philippine National Railways (PNR) Chairman Jose Cortez died of a sudden heart attack and left a big fortune of P560-M bank deposit. Where the money came from? House Speaker Jose De Venecia lobbied the project. NEDA chief Romulo Neri denied any irregularity in the project. The over-priced $329-M ZTE-NBN project is also finance by China Eximbank. Neri, Mendoza and De Venecia are again involved in the current scandal. Sen. Enrile belongs to the adminstration majority in the senate.
Saturday, 02 12, 2005 Daily Tribune
GMA’s China North Rail project reeks of graft
HOUSE LEADER IMPLICATED IN ALLEGED P29-B RAIL OVERPRICE
The gloves are really off.
Opposition Sen. Juan Ponce Enrile yesterday heatedly denounced the North Rail project and the half a billion dollar loan secured by President Arroyo from the Chinese government during her state visit to China late last year.
Speaker Jose de Venecia Jr. was also linked to the alleged overpricing of $503 million or P29 billion in the foreign-funded North Rail Project has after his name, as well as one William Go, cropped up during the hearing in the Senate yesterday.
Enrile, in exposing the alleged P29-billion North Rail scam, vowed that it won't matter to him if he exposes the high and the mighty in government in this scam, saying “I will expose all of you before the Filipino people. I am old and I fear no one.”
Enrile stunned senators after he had disclosed that apart from the high 3 percent interest the Chinese Bank exacts from the government, the Department of Finance (DoF) also imposed a 1percent additional interest in the project cost, a move lawmakers in the upper chamber found questionable since this insertion was never part of the original arrangement.
With the additional 1 percent, this will increase the capital cost by 25 percent, Enrile stressed, adding the cost mentioned is still separate and distinct from the $82 million that will be borne by the government for undertaking the project and some P7.3 billion funding requirement for relocation of almost 41,000 affected families.
It was admitted by Arroyo officials in an earlier hearing that there was no money with which to fund the relocation of the squatters in the North Rail area.
Enrile, in exposing the North Rail project anomaly, said the loan for the project that was secured by Mrs. Arroyo from China's Export-Import Bank (Exim Bank) through the intercession of the government of People's Republic of China (PROC) during her state visit, is said to be a pet project of De Venecia.
The disclosure is seen to steer the ongoing investigation into the hands of the powerful blue ribbon committee given the alleged big names in the government supposedly involved in the purported scam.
In the hearing conducted by urban planning, housing and resettlement committee headed by Sen. Rodolfo Biazon, De Venecia was alluded to as the official behind this alleged highly-anomalous deal.
Enrile revealed this information reached his office as he questioned the one-percent additional interest rate the DoF had imposed as a means to guarantee government's payment of the loan.
In questioning the DoF officials, Enrile also made mention of a certain Hong Kong-based William Go, whom De Venecia allegedly used as a broker to ensure that the contractor, China National Machinery and Equipment Corp. (CNMEG), secures the contract.
Heatedly, Enrile charged: “You are plundering the people! The mere fact that you are doing this without notifying us of this, is already a crime.”
He added: What kind of bankers are you that you drain the blood of the country? This scam is being talked about in coffeeshops-and the word is out that very high government officials are involved in this scam. Even the name of De Venecia has been linked to this.
“And who is this William Go from Hong Kong? He (allegedly) has a commission in this (deal) and the public will be made to pay for it. Even other politicians being involved in this are (allegedly receiving) commissions...they are 'commissioners,'” Enrile said, in berating the DoF officials.
It was learned that Enrile was made aware of the fact that the DoF had imposed a 1 percent interest on top of the three percent.
“The cost of this is going to be four percent instead of three percent...and the people who tell me this are themselves in the board of this railways (North Luzon Railways Corp. (NLRC) project. They have told me that they are being exacted another one percent by the DoF in addition to the (one percent interest rate of) $503 million.
“The finance department is passing this on to the railways corporation...in effect an additional 25 percent of the cost of money... that will be passed on to the riding public...if this is true, we are bargaining off the nation and the people with 25 percent,” he said.
DoF officials confirmed the one percent interest, saying it is in the draft subsidiary loan of the agreement to cover the cost of managing of the relending of the loan.
Based on their explanation, it would appear that the additional interest rate was made to ensure the Chinese foreign bank of the Arroyo government's payment of the loan in case there would be a default in obligation.
“For God's sake why are you doing this kind of thing? Managing a loan? You are being paid to handle the finances of the government and you are going to act as if you were a corporation, a bank to exact money from the people like this...that's $5 million,” Enrile said.
The senator was assured, however, that the subsidiary agreement is yet to be signed but the opposition lawmaker would not hear of it as he still required the officials to submit in the next hearing their explanation on the matter along with the necessary documents and the signed contracts.
In view of this information, Biazon, during the hearing, moved that the ongoing investigation be turned over to the committee on accountability of public officers and investigations or the blue ribbon committee chaired by Sen. Joker Arroyo.
Biazon's decision was immediately supported by panel members, Enrile and Sen. Juan Flavier.
Minority Leader Aquilino Pimentel Jr. who paved the way for the conduct of the probe after he delivered a privilege speech earlier this month questioning the project said the matter is proving to be messy as the public was given the impression the North Rail project would be built at no cost to the government after President Arroyo claimed she had managed to secure a loan package from the Chinese government when she made her state visit to China.
The project has been awarded to CNMEG and is funded by a $503 million loan, of which $421 million comes from China's Export-Import Bank.
This was the arrangement designated by the People's Republic of China when its officials agreed to grant Mrs. Arroyo the loan agreement, which was formally executed in a memorandum of understanding.
The DoTC is the largest govt agency in government.
It has control of air, land and sea and everything that links the islands, all the objects that roll, fly or float in the country.
It is one of the agencies that's so important to any sitting president because it is a piggy bank.
I'm not surprised Gloria put one cop after the other at it's head - someone like Lastimoso and Mendoza who have the tong mentality!
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