ZTE deal: First Gentleman cleared; Abalos, Neri face raps
By Michael Punongbayan (The Philippine Star) Updated May 27, 2010 12:00 AM
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MANILA, Philippines - Former elections chairman Benjamin Abalos and Social Security System president
Romulo Neri will be charged with graft before the Sandiganbayan for their alleged part in the controversy-
ridden contract between the government and Chinese firm ZTE Corp. for the national broadband network
(NBN) project.
However, the Office of the Ombudsman absolved First Gentleman Jose Miguel Arroyo of the same charges.
“Quite interestingly, the only memory that stands out during this meeting (at Wack Wack Golf and Country
Club in Mandaluyong) was (Mr.) Arroyo’s statement that (Jose) de Venecia (III) was told to back off from the
project,” read the resolution.
“There is no other independent statement or source of evidence that the meeting was purposely availed of to
allow (Mr.) Arroyo to influence the project.
“Thus, the panel continues to maintain the position that only surmises and conjectures have been
presented to this panel for assessment. To be certain, this presumption cannot be given any weight.”
The Ombudsman stood firm on Neri’s six-month suspension.
At Malacañang, deputy presidential spokesman Gary Olivar said proceedings in a court of law will be of a
higher standard of due process than an inquiry in the Senate.
“We hope that everyone involved will remember to conduct themselves according to the rules,” he said.
Ruy Rondain, Mr. Arroyo’s lawyer, said several months ago Ombudsman Merceditas Gutierrez issued a
resolution clearing his client of any culpability.
Lawyer Ernesto Francisco Jr., one of the complainants in the case, said the anti-graft agency’s action was
designed to ensure that Mr. Arroyo and several others charged would be absolved while President Arroyo is
in office.
“This also proves that we cannot trust the present Ombudsman to really go after those charged with
corruption,” Francisco said.
He will study the possibility of having the investigation reopened in the next administration to include Mrs.
Arroyo among those to be investigated, Francisco said.
In a telephone interview, Abalos said the graft charges against him would not stand in court.
“It is really the court that is the final arbiter,” he said.
“I think it is better this way, so that we can put an end to all of this. Ultimately, I know I will be cleared.”
On the other hand, Neri said he has not yet received a copy of the Ombudsman’s resolution.
“I’m asking my lawyers to read it first before I comment on it,” he said.
Whistle-blower Joey de Venecia III said Neri’s suspension is “better late than never.”
“I hope also that the prosecutors would be active prosecutors to prove the truth,” he said.
“I hope the senators would be able to craft legislation to prevent the ZTE-NBN anomalous transactions from
happening again.”
In finding probable cause to charge Abalos and Neri, prosecutors based their decision on the Senate
hearings on the NBN-ZTE controversy, De Venecia said.
In denying their motions for reconsideration, the Office of the Ombudsman said Abalos and Neri should be
charged with violation of Section 3(h) of the Anti-Graft and Corrupt Practices Act.
Abalos will also be charged with corruption of a public official before the Mandaluyong Metropolitan Trial
Court.
Abalos is accused of offering a P200-million bribe to Neri, who was then National Economic and
Development Authority (NEDA) director-general, to approve the NBN-ZTE contract.
In his motion for reconsideration, Abalos said he is being indicted based on incredible, uncorroborated and
baseless testimonies of a witness who presented false statements before the Senate.
“Surely, there is nothing unlawful, much less condemnable, in herein respondent assisting in the realization
of a potential investment which would not only spur the economy but will also create jobs for his
countrymen,” he said.
“Thereafter, it was a matter of maintaining a friendship borne by a common love for golf that kept herein
respondent in touch with ZTE and its officials.”
However, the anti-graft agency said that Abalos’s and Neri’s motions for reconsideration failed to adduce
sufficient evidence to warrant the reversal of the August 2009 Joint Resolution.
“All factors and arguments considered, respondents Abalos and Neri have failed to convince the
undersigned panel that its findings should be reversed,” read the decision.
As to the administrative case against Neri who was suspended for six months as he is still in government
as SSS president, the Office of the Ombudsman denied his motion for the decision to be reversed for lack of
merit.
In a separate order, the panel said he “miserably failed to present new evidence or argument to support his
claim” of innocence as the director general of NEDA at the time the NBN-ZTE deal was approved.
The investigating panel was comprised of Mindanao-based Assistant Ombudsman Rodolfo Elman, Director
Cesar Asuncion, and Deputy Special Prosecutors Jesus Micael and Robert Kallos. —With Rainier Allan
Ronda, Jose Rodel Clapano, Paolo Romero, Sheila Crisostomo
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