Transcript of ZTE hearing: Sen. Escudero questions Sec. Favila

Sen. Chiz: Secretary Favila, earlier I asked you about the MoU you signed with the ZTE officials as stated and described "mutual cooperation and/or understanding agreement" that encompasses not only the NBN deal but also the establishment of an information technological school; operation of mining in Davao; exploration, development and operation of mining areas in Diwalwal; and establishment of an economic zone in Davao area. Is that accurate?

Sec. Favila: That's right your honor.

At yung binabanggit nyo pong minutes ng meeting sa DFA ay patungkol lang sa ZTE. Pwede pa ring tumuloy itong mga projects na ito with ZTE because this MoU is not in any way cancelled.

The word of DFA your honor, as requested, I sought the copy of the lease, the bilateral lease.

Could you submit it to the committee which could respond to your query. Tama po ba yung pagkakaintindi ko ang kinacel lang sa DFA minutes of the meeting yung ZTE-NBN deal o contract pero itong MoU na ito ay nananatili pa ring buhay. Ibig sabihin itong ZTE ay pwede pa ring pumasok sa iba't ibang proyekto dito sa MoU.

That's right your honor.

In previous hearing, with the attendance of other cabinet secretaries, lumabas ito na yung isang probisyon ng kontratang ito ginagamit laban sa mga government officials natin particularly, I'm referring to clause or paragraph 2.1.2.1 and 2.4. nakalagay po dito essentially kinocommit nyo bilang pumirma at ni Secretary Defensor bilang testigo nito, kung di ako nagkakamali, na ibibigay ng mga ahensya ng pamahalaan kabilang na ang DTI, NEDA, DOF, DBM, DILG at DOTC ang anumang kinakailangang permit para maisakatuparan yung ating kinommit sa kontratang ito. And this was used several times by Secretary Mendoza in his letters to Andaya and to Neri when he was following up on the agency approval emanating from his department. My question Mr. Secretary is paano tayo makakasiguro kung buhay pa nga ang kontratang ito, na hindi na muling maaabuso at magagamit yang probisyon na iyan para makuha yung mga permit sa mga ahensyang ito at malampasan yung mga requirements ng batas.

Thank you your honor, dun po sa MoU, dun pos a strategic commitment sa sections 2.2.1, 2.2.3, 2.2.4, sinasabi rito na the Republic of the Philippines through the Department of Finance, the Department of Trade and Industry, the DILG, the DENR, the DOTC, Department of Budget and NEDA, and other government agencies and offices shall assist ZTE International in the development and implementation of the investment projects. Ngayon po yun pong prinopose ng ZTE na Broadband, yan lang po yung proyektong prinopose nila, ito po yung nakansela na.

So yung iba posible pa pong pasukan?

Palagay ko po di ko po masasagot yun dahil sa pangyayari e I doubt it kung ZTE will still have gotten interested.

It should cut both ways Mr. Secretary. If you doubt ZTe would still be interested hindi ba't tayo rin hindi na rin dapat interesado sa kanila. Kung tila may lumalabas na ganitong mga balita, tsismis, imbestigasyon, at ebidensya on how they do business.

Your honor, yun hong MoU wala naman ho tayong binibigay na commitment sa kanila. Sinasabi po natin dito, it's just a, you know, a cooperative agreement na cooperate in the development and implementation of yung very investment activities na nasabi nyo po.

So given your opinion Mr. Secretary, can you state here before this committee and under oath that the government will not enter into any of these agreements or projects anymore with ZTE?

Papaano po yan your honor?

Dahil po sa karanasan natin sa ZTE at dahil sabi din nyo ayaw na ng ZTE pumasok, kaya nyo bang sabihin samin na hindi na manghihimasok pa ang ZTE sa mga proyektong binanggit dito sa MoU. MoU lang naman ito gaya ng nasabi ninyo hindi ba?

Pero palagay ko your honor I'm in no position to make such a commitment because my role is administrative level. Sa implementation po wala po ako dyan e. nasa implementing agencies po yun.

Having said that, ang basis pa rin po ay itong MoU. Can you at the very least commit to this body, at least to this committee or the Senate that you are informed of this committee's hearing, this particular issue if any of these projects should be entered into by government given that you are or you have a seat in NEDA if I'm not mistaken.

Ang sa akin po your honor, whether it's ZTE or other companies in China, maliwanag po sa mga MoU's natin na all terms of the MoA is subject to compliance with Philippine laws so for so long as eto po ay tinutupad, ang Saligang Batas po natin. I see no...