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MIKE ARROYO IS THE MYSTERY MAN IN THE NBN DEAL - DE VENECIA SON PDF Print E-mail
Written by Philippines Daily Inquirer   
Saturday, 22 September 2007
Mike Arroyo
Mike Arroyo
MANILA
, Philippines -- (UPDATE 5) First Gentleman Jose Miguel Arroyo is the “mystery man” who told him to “back off” in talks on the National Broadband Network project, the son of Speaker Jose de Venecia Jr. revealed to the Senate Tuesday.Jose de Venecia III, whose company the Amsterdam Holdings Inc. (AHI) expressed interest in the project, made this disclosure under oath in an inquiry before the committee on accountability of public officers and investigations (the blue ribbon) that is investigating the questionable $329 million contract between the government and the ZTE Corp. of China.

De Venecia III said the “reconciliation” meeting “mid-March” was arranged by Transportation Secretary Leandro Mendoza after Commission on Elections Chairman Benjamin Abalos failed to convince De Venecia to withdraw the AHI’s build-operate-transfer proposal for the project that would electronically interconnect all government offices nationwide.

Aside from himself, Arroyo, Abalos, and Mendoza, the others present during that meeting at the Wack-Wack Golf and Country Club in Mandaluyong City were: Abalos’ chief of staff Jimmy Paz, Abalos security staff and retired police general Quirino Dela Torre, Ruben Reyes, and Leo San Miguel. De Venecia misidentified the police official as Edgar Dula Torre and corrected himself before the body.De Venecia said that before the First Gentleman allegedly terrorized him to withdraw his proposal, Mendoza told him that Abalos and Arroyo were at the meeting site -- “a function room diagonal to the veranda.”De Venecia said Abalos told him, “I forgive you for your sins.” But De
Venecia said he did not react and instead proceeded to explain the advantages of his company’s proposal -- that it would cost the government nothing in terms of a sovereign guarantee, equity, or subsidy.
De Venecia said that it was here that Arroyo approached him and with a finger that was about “two inches from his nose,” told him to “back off.”De Venecia said he took the First Gentleman’s words to mean that “iwanan mo na itong proyekto [leave this project].”De Venecia said when he tried to explain how his company’s proposal was more superior to that of the ZTE Corp., the First Gentleman stood up and left.
  The First Gentleman and Abalos are “close friends, including Secretary Mendoza. They play a lot of golf. They are buddies,” said the young De Venecia.De Venecia said he assumed that Mr. Arroyo was asked by Abalos to talk to him when Abalos failed to convince him to back off.De Venecia said that when he submitted his company’s proposal to the Department of Transportation and Communication last December, Abalos offered him a $10 million bribe, which he refused.De Venecia also said that while in China in December, where he was introduced as Abalos’ partner, he saw Abalos demand for the balance of his kickback from the ZTE officials.De Venecia quoted Abalos as describing himself as “the most powerful man in the Philippines from January 15 to about June,” and that “the President and the Speaker were waiting for these funds.”“Embarrassed for the Philippines,” De Venecia said he called Abalos to the sidelines to tell him that it was “highly inappropriate and wrong” to mention the President and the Speaker. But when they returned to the meeting, De Venecia said Abalos insisted on getting the money that ZTE officials allegedly promised him.De Venecia said ZTE officials told Abalos that they would release the money only after the “loan documents” were finalized.It was here that Abalos got really mad, and started “banging his fists on the table and started shouting at the ZTE officials, who refused to budge,” De Venecia said.

De Venecia quoted ZTE director Fan Yang as asking Abalos, “What about the money already advanced, Mr. Chairman?”
Throughout his opening statement and his being questioned by the senators, De Venecia referred to the President as “my President.”But when questioned by Senator Ana Consuelo Madrigal and Panfilo Lacson, the younger De Venecia admitted a connection between the President and the contract.De Venecia said he was told by his father that the President played golf with Abalos and some ZTE officials in China. In that golf game, the President asked Abalos to replicate his proposal so that there would be no cost to the government, he added.De Venecia said the “reconciliation” meeting became necessary because he again met Abalos sometime in February, where Abalos “called [him] profanities,” told him that he had him bugged, and threatened him.

The younger De Venecia said he did not reveal the bribe offer and the overprice because he was still “continuing talking with DoTC” on his company’s proposal.
The project, which originally cost $260 million and had ballooned to $329 million, was eventually forged by the government with ZTE.Earlier on Tuesday, the Senate said it would issue a subpoena ad testificandum to Mendoza, Trade Secretary Peter Favila, and Romulo Neri, chairman of the Commission on Higher Education; and to Mr. Yu Yong of ZTE Corp.Senator Francis Escudero filed the motion before the blue ribbon committee, which was seconded by Senate Minority Floor Leader Aquilino Pimentel Jr.Pimentel and Senator Panfilo Lacson scored the departure of the First Gentleman on the eve of their inquiry.Asked to comment, Pimentel said: "Flight is a sign of guilt."Aside from De Venecia III, also at the inquiry were Philippine Star columnist Jarius Bondoc, former commissioner Ramon Sales of the Commission on Information and Communication Technology, and Iloilo Vice Governor Rolex Suplico.
Last Updated ( Saturday, 22 September 2007 )
 
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