GMA VOWS NEITHER FRIEND, NOR FOE WON'T BE SPARED IN SCANDAL PROBE

GMA VOWS NEITHER FRIEND, NOR FOE WON'T BE SPARED IN SCANDAL PROBE

MANILA, FEBRUARY 25, 2008 (STAR) Neither friend nor foe will be spared in the investigation and prosecution of those involved in the scandal surrounding the scrapped $329-million national broadband network (NBN) project, President Arroyo vowed yesterday.

Mrs. Arroyo made the statement even as she maintained that no one in the First Family was involved in anomalous government deals.

“We will hold officials accountable if they are found to be corrupt. Let the guilty be punished whoever they are, as investigations are concluded and friend and foe alike are brought to account for their actions in the proper courts,” Mrs. Arroyo said.

“My family does not conduct business with the government and it is not acceptable if it was otherwise and they know that,” she said.

At the end of a concelebrated Mass at the Heroes’ Hall in Malacañang, Mrs. Arroyo vowed to “work to fix the corruption that still plagues our nation” through proper legal processes and evidence, as against “baseless allegations and rumors.”

Mrs. Arroyo made the statement a day after she admitted learning of the irregularities on the NBN project on the eve of the signing of the contract with ZTE Corp. in China last year.

She promised to throw the book at anyone involved in the scandal even as security forces prepared for massive anti-government protests today pushing for her resignation.

The controversy has linked her husband, First Gentleman Jose Miguel Arroyo, and former elections chief Benjamin Abalos to the aborted telecoms deal.

Mr. Arroyo and Abalos have been accused of being brokers of the deal, an allegation they repeatedly denied.

The President earlier ordered Justice Secretary Raul Gonzalez to conduct an investigation into the allegations.

Mrs. Arroyo pointed out that no one is above the law but stressed the prosecution of the people involved in the anomaly must be based on solid proof.

“It is sad that some enemies stoop so low in their desperate attempt to destroy (the administration). It is sad to hear some of the statements and allegations of those who are bitter,” Mrs. Arroyo said.

She said she would not dignify “baseless comparisons” that her administration was more corrupt than previous administrations.

Mrs. Arroyo cited the growing economy as the best response to such statements.

“A corrupt nation does not post the fastest economic growth in a generation or increase its government coffers or run after tax cheats or prosecute more officials if they are not transparent,” she said.

Mrs. Arroyo admitted she was bothered by the allegations but also expressed anger that corruption exists in government. And like the people, she said she takes the NBN issue seriously.

In an interview with dzRH radio, Mrs. Arroyo admitted learning about the irregularities on the NBN but did not say who gave her the information.

That is why, as she claimed, she acted to cancel the contract.

According to Mrs. Arroyo, she just waited for proper negotiations with China to be concluded before eventually deciding to scuttle the project.

Mrs. Arroyo said she had informed Executive Secretary Eduardo Ermita and Interior Secretary Ronaldo Puno about the bribery attempts to conclude the contract with ZTE.

She explained her decision to cancel the contract showed that she will not tolerate corruption under her administration.

She pointed out the government has taken other steps, including increasing the budget of the Ombudsman to strengthen its work in checking corruption.

“We aim to take control of the situation, and work with Congress, and Speaker (Prospero) Nograles is here, to pass anti-corruption reform measures 2008 to cover loopholes and increase penalties,” she said. – Paolo Romero

GMA: I won’t step down By Paolo Romero Monday, February 25, 2008

President Arroyo says she may not be perfect but she is the duly elected Chief Executive who will “work hard every day to achieve positive and lasting change for the nation” until she finishes her term in 2010.

This was Mrs. Arroyo’s message on the eve of the 22nd anniversary of the 1986 people power revolt as she brushed aside mounting calls for her to resign in the wake of the broadband scandal hounding her administration.

“I am the President, and no one else,” she said.

“I am the one who decides on issues on governance and not those who are not in office,” Mrs. Arroyo said in Filipino following a concelebrated Mass at the Heroes’ Hall in Malacañang officiated by Fr. Bong Cabrera and Bishop Raul Martirez.

Among those who attended the Mass were Speaker Prospero Nograles, presidential sons Pampanga Rep. Juan Miguel Arroyo and Camarines Sur Rep. Diosdado Arroyo, other congressmen, and Palace staff.

Authorities were placed on red alert and additional 3,000 troops were deployed in Metro Manila over the weekend to thwart possible attempts to grab power as opposition groups vowed to mobilize the people to force Mrs. Arroyo out of office.

“I will follow the Constitution and my desire to step down at the end of my term. I assure you I will leave office in 2010 but until that day, I will work hard to push for reforms to leave the country stronger for the next leader,” she said.

She said the government should always push for social justice and address the various needs of the people.

“It is a sin to be remiss in these responsibilities,” Mrs. Arroyo said.

“Beyond policies and programs, our people want leaders who are God-fearing, pro-poor, unafraid to make tough choices, hardworking and loyal to the people of the nation. These are the values I live by. These are the values I expect to be judged when we meet our Maker.”

She said Filipinos want political stability and a clear economic future and this motivates her to get up early everyday as there are many things that need to be done to make the country economically and politically stable.

Mrs. Arroyo said she remains “committed to being a force for good” and “will be forever humble at having had the privilege of serving the nation.”

She reiterated that she made tough and unpopular decisions to raise revenues, crack down on smugglers and tax cheats so the government can invest on physical infrastructure and people.

Apart from infrastructure, the administration has also been focusing on health, education and environment resulting in seven million new jobs, reduced hunger incidence and more investments for the country, Mrs. Arroyo said.

She, however, said the economy is also being threatened by challenges, including skyrocketing world oil prices. “No matter how much improvement there is at the top of the economic ladder, many of our poor still struggle mightily.”

“We are deeply aware that many hardworking men and women everyday work hard just to put food on their table and provide adequate shelter for their families. The high price of gasoline, electricity, hits our poor the hardest. While the high price of oil is a global issue outside the control of government, we have nevertheless taken and will continue to take action to reduce the pain on our people of these high prices,” she said.

Mrs. Arroyo also said she will not respond to allegations that her administration is more corrupt than previous regimes. “The growing economy is the best answer to those nonsense.”

She challenged her detractors, especially those seeking the presidency in 2010, to develop a positive agenda for change and reform.

“The people want us to focus on working for the people and avoid the endless saga of political vendetta and mindless investigations,” she said.

She said may not have enough time to implement amendments to the Constitution. “I hope the next year would have the courage to repair our flawed political system.”

‘A smoking gun of complicity’ By Christina Mendez - President Arroyo’s admission that she knew of irregularities in the national broadband network (NBN) deal with ZTE Corp. even before the contract was signed may be “a smoking gun of her complicity,” Sen. Aquilino Pimentel Jr. said yesterday.

The President, in an interview with dzRH last Saturday, said that she was told of irregularities in the NBN deal with ZTE Corp. the night before the contract was signed on April 21, 2007 in Boao, China.

She said she could not immediately call it off because it would put the Philippines and China in an embarrassing situation.

Pimentel called on Senate committees investigating allegations of corruption in the NBN deal to examine Mrs. Arroyo’s statement and assess whether she violated anti-graft laws.

Several other senators also warned yesterday that the President’s confession could warrant impeachment proceedings against her.

Senate President Manuel Villar Jr. said Mrs. Arroyo may face impeachment charges over her admission and that the Senate may no longer have to call her to clarify her statements before the Senate joint panel investigating the NBN deal.

“Impeachment is the right process, not (going to the) Senate,” said Villar, who added though that the President can go voluntarily before the Senate to clear her statements.

“While we won’t invite President Arroyo as a matter of courtesy to a co-equal branch of government, she may come to the Senate voluntarily if she wants,” he said.

Sen. Jamby Madrigal said the President was privy to the conspiracy.

“By this statement alone, she has confessed to being a party to a conspiracy to hide the truth from the Filipino people. It also proves that she informed of the advances made by the ZTE every step of the transaction,” Madrigal said.

Villar said the President’s confession caused more confusion rather than give the public a clearer picture of what transpired.

Villar said Mrs. Arroyo’s act could be one of the Palace’s moves to defuse the growing clamor for her resignation.

“The President has admitted to the irregularity. I don’t buy her explanation that she does not want to embarrass China (in the NBN deal). We are not dealing with China as a government but only with ZTE as a company (of China),” Villar said in an interview with dzBB.

Villar said the President should have put first the interest of the Filipino people who voted for her.

He added that Mrs. Arroyo already tried a similar tactic in 2005, when she apologized for talking to then poll commissioner Virgilio Garcillano during the canvassing of election returns in the 2004 elections, but insisted she did nothing wrong.

However, the presidential admission could also be a case of playing “copycat” to Senate star witness Rodolfo Noel Lozada Jr., Villar said.

“I don’t know if the gamble will pay off. It may be a ploy to get the heat off her. She thinks that if she seeks public sympathy, the people will forget her trespasses,” he said.

Sen. Francis Escudero, a lawyer, does not want to prejudge the President’s statements this early because it might be used to file impeachment charges against her and as senator, he will sit as judge in an impeachment court.

“This constitutes graft and bribery. Let’s not forget that more than P50-billion is involved here where some P10 billion supposedly went to fat commissions,” Escudero said.

Sen. Edgardo Angara meanwhile called for the need to wrap up the Senate probe but opposed moves to unconstitutionally remove the President from power.

“If impeachment is possible, then (let them) pursue impeachment, but not shortcuts. (People power) is nice to hear because it is romantic like what happened in 1986 and in 2001 but democracy is also important and many people are suffering,” Angara said, adding that the inquiry has affected the work of the Senate.

Sen. Panfilo Lacson said the President’s allies were put in a bad light because they have been defending the NBN deal while Senator Madrigal added that the President’s admission is a “ridiculous confession of guilt.”

Lacson said, “Now that PGMA has admitted that the ZTE contract is really flawed, it is now crystal clear that Assistant Secretary. (Lorenzo) Formoso, (Transportation) Secretary (Leandro) Mendoza, and even (Commission on Higher Education chairman Romulo) Neri committed perjury when they testified that nothing is wrong with the contract.

“They should all go back to the witness stand and correct their earlier testimonies or resign immediately for lying to the Filipino people,” he added.

“What could have been the better excuse if she did not push through with it, other than FG (First Gentleman)’s health condition?” Lacson said.

Lacson said the concerned officials should come clean before the Senate to avoid perjury charges; otherwise, they should resign.

He said Mrs. Arroyo’s sudden admission surprised everyone, even himself, as many administration officials took pains to make it appear that the deal was aboveboard.

Villar said, “The President has her own version of what happened, and so do the Philippine National Police and the Department of Transportation and Communications. Their recollections of what happened had become such that they started conflicting each other and caused the public to doubt them.”

He added that each government official may be trying to save his own neck on the controversy.

Roxas, co-chairman of the Senate joint panel conducting the NBN probe, is not keen on believing Mrs. Arroyo’s latest caper.

“This is the President’s second public ‘mea culpa’ after a major scandal of public interest, which in this instance is the ZTE-NBN deal. In the first instance, the ‘Hello Garci’ wiretapping incident that points to alleged fraud in the 2004 presidential polls, she said, ‘I am sorry,’” Roxas said.

“But after saying so, she put out orders that limited freedom of expression and of the press, that compromised and denigrated the independence of Congress, and sent a chilling effect to all,” he said.

Roxas asked further, “How can we believe in the sincerity of the President to set things right in the face of EO 464, the Lozada abduction and harassment clearly intended to impede truth and justice?

“How can we believe in the sincerity and motives of the President if she is using our diplomatic relations with China as an excuse for not preventing a crime against the Filipino people? If the President is indeed sincere in her latest admission of fault, then she should immediately lift EO 464; order the NEDA(National Economic and Development Authority) Director-General to submit to the Senate all NEDA-ICC documents in relation to the NBN; and other actions that respect the people’s right to free expression and to information,” he said.

Economic reforms ignored

President Arroyo ignored the economic reforms that Neri proposed when he was economic planning secretary and director-general of NEDA, Pangasinan Rep. Jose de Venecia Jr. said yesterday.

De Venecia said he knew that Neri brought to the attention of Mrs. Arroyo the same complaints against cronyism, monopolies and oligarchy that he discussed with Lacson and Madrigal last December.

But instead of adopting the reforms proposed by her economic planning secretary, the President ignored them and transferred Neri to the CHEd in the wake of the NBN scandal, according to De Venecia.

It was Senate’s NBN witness Rodolfo Noel Lozada Jr. who revealed Neri’s December meeting with Lacson and Madrigal.

Lozada, who attended that meeting, said his friend Neri described Mrs. Arroyo as “evil” and “at the center of corruption” in her government.

The former NEDA chief claimed he could not remember calling his Palace boss “evil.”

But he admitted complaining about monopolies, cronyism and oligarchs who are close to the President.

He said if these were dismantled, the costs of power and communications, including mobile phone service, could go down by at least P1,000 per household and subscriber.

De Venecia said he reiterated Neri’s economic reform proposals in a letter he sent the President last Oct. 20.

Vindicated at last

NBN whistleblower and businessman Joey de Venecia III feels vindicated over President’s admission that she had knowledge about the irregularities in the NBN-ZTE contract

“It vindicates me since I went to the (Senate) hearings and revealed that this is a corrupt deal,” De Venecia III said in an interview.

“Here she comes now saying ‘I knew it was flawed.’ She already knew then, why did she proceed signing it. She allowed the lies to continue,” he said.

For her admission, De Venecia said Mrs. Arroyo “has betrayed the public trust” and she should face the consequences and resign from her post.

He also questioned why, despite the President’s announcements, there are no documents to prove that she has cancelled the contract.

The younger De Venecia, who has been going to various schools to discuss the corruption in government as brought about by the NBN controversy, criticized anew the President for allowing Cabinet officials to go to the Senate and lie about the contract.

De Venecia revealed yesterday that he plans to reiterate before the Supreme Court the need to put out a permanent injunction against the NBN deal. The SC has issued a temporary restraining order at the height of the controversy last year.

De Venecia also hit Mrs. Arroyo for her “I am not perfect” speech in Malacañang yesterday and that she has ordered an investigation into the NBN deal as soon as she learned about the anomaly.

It was De Venecia who testified before the Senate in September last year over the overprice in the NBN deal and that Abalos negotiated for fat commissions on behalf of himself and the First Gentleman Jose Miguel Arroyo. — With Jess Diaz, AP

Reported by: Sol Jose Vanzi

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