CHIZ WANTS GOV'T TO CANCEL WHOLE ZTE DEAL
Says the NBN deal is just one among the projects entered into with ZTE

With the government pronouncing cancellation of the controversial NBN deal, Senator Chiz Escudero wants to know the specifics of the said cancellation since the ZTE deal has 5 investment packages in it and the NBN deal is just one among them.

Escudero said the government should be able to clarify whether the entire deal was cancelled or just the NBN alone which, Escudero added is still questionable as the government has not yet produced any proof or papers that would show the cancellation.

In a memorandum of understanding signed by Trade Secretary Peter Favila, together with ZTE President Yu Yong and witnessed by then Presidential Chief of Staff Michael Defensor and ZTE Chairman Hou Weigui, the Philippines entered into a US$4 billion loan agreement with ZTE. The NBN project was pegged at US$329 million.

Under the said agreement, ZTE will provide the financial and technical services for five investment projects namely: (1) nationwide government broadband communication infrastructure project, which is the now contested NBN deal (2) establishment of information technology school and training center, (3) exploration, development and operation of mining areas in North Davao, (4) exploration, development and operation of mining areas in Diwalwal and (5) establishment of a special economic zone in the Davao area.

Escudero said Favila entered into an onerous deal for and in behalf of the Philippine Government and the ZTE International, which, among others, practically bound the country to award the NBN project and other deals and contracts to ZTE.

With Favila's confirmation that only NBN deal was cancelled, the senator said there is more reason for the Senate to scrutinize the other parts of the ZTE deal. "ZTE officials, as Joey De Venecia testified, already gave "advances" to our erring government officials for the NBN project alone, if this is the kind of dealing that ZTE conducts business, then we can likely look at more advances from other programs included in the particular package signed by Favila".

Escudero is wary that the four remaining projects may be used to compensate to what will be lost or what was lost from the NBN dealing. "Baka kung ano ang naluging kickbacks ng mga operators ng gobyerno, ditto bawiin sa apat pang natitirang projects".

He said that the other four remaining ZTE projects should be unilaterally cancelled and if the government still desires to go on with these, ZTE should already put their hands off from the programs.

"The government should be protecting the interest of the state and not of the external party. The whole ZTE package should be cancelled totally. The administration cannot hem and haw when it comes to fulfilling its duty and commitment to the Filipino people rather than upholding its commitment to foreign parties".