Press Release
September 27, 2007

ROXAS SEES STRONGER RP-CHINA TIES DESPITE ZTE SCANDAL;
CALLS FOR URGENT REVIEW OF NEDA APPROVAL PROCESS

Senator Mar Roxas expressed confidence that bilateral relations between the Philippines and China will emerge stronger as a result of reforms arising from the ZTE broadband controversy.

"By all means, the Senate probe should not diminish the great potential of close RP-China relations. The credit facility that the Chinese government extended was ours to accept or reject and to use wisely guided solely by the national interest. Unfortunately, shortcuts were undertaken and bribes were offered to facilitate a multi-billion broadband deal that the Filipino people does not really need," Roxas stressed.

The senator said there is room for reforms and mutual cooperation on how best to promote closer RP-China ties. "I am confident that 33 years of cultural and historic ties with China are strong enough to withstand the ZTE controversy," the senator said, adding that the ZTE broadband fiasco did not spring from racial or cultural differences but because the interests of a selfish few were allowed to prevail over the national interest.

Roxas, chair of the Senate trade and commerce committee, said the broadband controversy was a product of a very loose approval process within the Philippine government and complete lack of transparency and accountability by and among the departments and agencies involved.

"We need to review our procurement law, the ODA Law and the government's approval process to put in additional safeguards," he said.

Reacting to Secretary Romulo Neri's testimony, Senator Roxas said he was stunned that the broadband project was allowed to be calendared and discussed in subsequent NEDA Board's agenda even after the alleged bribe offer by Comelec Chairman Benjamin Abalos of P200 million to its director-general.

Secretary Neri said the NEDA Board based its recommendations on the economic viability of the project. Neri also told the joint committees that he has done his duty by reporting the bribe attempt to the President.

"Wow, that is a stunning admission, Secretary Neri, na, even if you yourself received what in your mind is a bribe offer, that there is possibility of corruption around a contract, around a project, you would still positively recommend it to Cabinet ICC. I'm just saying that wow, that is stunning. Because, is that the level now, is that the standard now for passing our contracts in government, at least when you were in NEDA? Na kahit may bulong-bulong, kahit hindi lang ito bulong-bulong, ikaw mismo nakatanggap in your own mind a bribery offer, okay lang 'yun, kalimutan na lang iyon?"

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"It's very, very disappointing. Parang, bahala na lang kayo, bahala na si Batman kung anong mangyayari sa 300-million dollar loan na ito. Clearly, we now need to review the approval process by government, because that approval process is the most important element in making sure that billions of EVAT taxes do not go to waste," Roxas told former NEDA director-general Romulo Neri during last night's hearing.

Senator Roxas said, "NEDA's role is to ensure that the DOTC followed the President's directive for the broadband project to be Build-Operate-Transfer, without sovereign guarantee, with private sector participation, and so on and so forth. And now we have subsequent NEDA meetings where the approval was for a project that is very different from that which the President had wanted. Something fell in the cracks here and we owe it to the people to unravel the mystery behind this sea-change in policy."

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