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VOL. LIII No. 033
City of Tagbilaran, Bohol, Philippines
Sunday,September 9, 2007
ADVERTISERS
Ex-Gov. Relampagos:
  dagdag-bawas victim?
96% Boholanos want
  brgy. polls next month
Names in Blue Card
  padding row demanded
Nullification of power
  franchise, hike sought
US envoy impresses
  Boholanos
OPINION
Obiter Dictum
Juan L. Mercado
Sundry
Fr. Roy Cimagala
One Voice
LINKS

 

 

 

 

 

 

 

 

 

 

 

 




CANCEL THE ZTE BROADBAND PROJECT

 

The lags in infrastructure strength in Southeast Asia - discouraging investors from pitching camp in the country.

Administration ally and former senate president Edgardo Angara himself said that about P20 billion (mostly in infrastructure) per year goes illegally to the hands of corrupt bureaucrats and their private sector allies. Sadly, that means that even if the 7.5% second quarter GDP growth rate was largely fueled by government "pump-priming" in projects, the latter's intrinsic value to the nation is frittered away by graft.

Worse, the "30 pieces of silver" could be spirited away in dollar accounts abroad to buy apartments in New York, houses in California and sexcapades with exotic escort girls.

Yet, twenty years after Marcos and the infamous Bataan Nuclear Plant that produced no bolt of electricity but sucked the nation's coffers dry in debt payments instead, actual and potential "White Elephant" projects continue to proliferate.

One such project is the National Broadband system that is to connect the National government to all agencies and local LGUs, a project costing P16 billion - but which is both useless and overpriced.

Useless - because there are existing private telecom systems that already have the structural backbone nationwide to carry out the linkage. All the Government has to do was to pay rental fees at market rates and there would be little cash out from the Government.

In fact. last year GMA instructed NEDA director Romulo Neri and technology head Ramon Sales that the NBN (National Broadband Network) to be under Build-Operate-and transfer so there would be no cash-out from the Government.

But by April this year, an Agreement was signed in China (at the height of the election fever) between DOTC and ZTE Corp (Chinese provider) for a purchase deal (not BOT) amounting to US$330 million (P16 billion). That means additional US$400-million debt for the next generation to pay for 25 years from a so-called soft loan from China Export-Import Bank, where else?

The ZTE NBN Deal must be abrogated because Government is getting into a business it is regulating to the prejudice of the existing telecom private sector players and future investors in the industry because RA 2975 wanted such investment done by the private sector.

Besides government ineptitude in this area is abundantly manifested in the grand failure of the "Telepono ng Bayan" project.

It is overpriced - moving from the initial US$262 million to US$330 million, higher by US$50 million than what competitor (USA) Arescom USA could muster with the backing of the Eximbank for financing.

So, why is the Government falling over itself, to do the project their way - overpriced and loan-funded by the Chinese?

Representative Carlos Padilla of Nueva Vizcaya courageously filed graft charges against officials including DOTC Secretary Leandro Mendoza and an impeachment case may hound apparent "deal broker" Comelec Chairman Benjamin Abalos for violation of Conduct governing Public Officials.

In the private sector companies - in order to avoid conflict of interest - ask their officers to toe the ethical line: not to receive gifts above P1,000 even for Christmas (or have them raffled if it would insult the giver if returned), to pay for their own expensive lunch and concert dates and not engage themselves or their families in any business tie-up with their clients while holding that position of power and distinction.

Yet in this ZTE Mess, media accounts abound which show that Abalos had shed off the last shred of propriety, decorum and fair play in playing a lead role allegedly in having ZTE bag the P16-billion NBN deal from Government.

Abalos, a Constitutionally-appointed official, had no business (especially at the height of the election busy days) to visit ZTE in China four times - for golf and alleged sex (two girls per day) - and then play golf caddy, as the Inquirer puts it in Wack Wack Golf in Mandaluyong when the ZTE folks were here. His own daughter does import trade with ZTE.

After a daily newspaper's blind item and after all Comelec commissioners denied involvement, the Comelec Chief finally admitted that he was the one being pointed to but that he was just being "chummy with his golf mates." Then he brokered a meeting with the ZTE and two influential decision-makers in the deal DOTC secretary Mendoza and Finance secretary Gary Teves.

After many media denials, Abalos was indirectly indicted by Teves who said they talked about the NBN project and not the Mindanao zone as Abalos alleged.

Newspaper accounts are so graphic as to be almost believable.

Joey De Venecia III (son of JDV and a ZTE competitor) recounted that Abalos tried to bribe him with US$10 million (P440 million) to stay away from the bidding and he will be made Chairman Emeritus of the new company.

According to one other media account Abalos bragged before his ZTE audience that "he is the most powerful official in the country beginning January 2007 because of the forthcoming May 2007 elections." The usual tone of a braggart broker to justify one's commission - it would seem that way from afar.

Abalos, a traditional politician as mayor of Mandaluyong, knows he is retiring in February 2008. So far, the legacy he leaves behind for this country and his family is not Class A.
He was Comelec chief when the Supreme Court tore a disadvantageous-to-the-government deal involving a P1.2-billion election automation system but the Ombudsman seemed frozen on its tracks to carry out an SC findings and prosecute Abalos.

In the Garci scandal in 2004, Abalos was responsible for transferring the infamous Garcillano to Mindanao as Comelec officer. In 2007, he was "accidentally" caught exchanging pleasantries with the parents of Migs Zubiri in a hotel room. Migs eventually won the last 2004 senate seat courtesy of the Maguindanao Magic.

Maguindanao Provincial Election Supervisor Lintang Bedol, on the other hand, was just given a slap on the wrist for his involvement in the apparent fraud in that province.

Sometimes it is so pathetic to watch one man -so visible to the glare of media before his countrymen - to be the opposite of the king whose magic touch turned everything and everyone to gold.

For Abalos - it seems they all just turn to mischief and with not just a tinge of corruption. And the ZTE NBN Deal seems one of them. Scrap the damn deal, dudes.

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For Comments: email to bingo_dejaresco@boholchronicle.com Or editor@boholchronicle.com

 

 

 

 

 

 

 

 

 

 

 

 

 

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