What the heck is the NBN deal all about?
March 12th, 2008 Shobe_ceo
Today I am about to attend a talk regarding the NBN deal and I have to admit that I still don’t have a firm stand regarding the supposed bribery and corruption that went along the said deal. I am still at a limbo on who and what to believe. For one, there are many claims and coutner-claims that surround the issue. But what I am certain about is that I am to bound to believe the side or party who can and will produce solid evidences regarding the issue.  So far, all we have are testimonial claims and evidences, which canot be a solid ground to decide upon the matter. Hearsays or testimonies can very well be corroborated.
Despite the current plight of the country on the issues on the NBN deal, we, as citizens, are duty-bound to know the issues surrounding the country’s present struggle. We must be informed and make a firm stand on the issue. We should not rely on what people or congregations say we should believe. We must personally know the issues and assess it based on our own set of values, beliefs, and understanding. As part of that duty, I am posting below the timeline, from Inquirer, of what happened during that deal. I hope that this will help in assessing the issues and, at the very least, being informed about it.
LENGTH AND BREADTH OF THE BROADBAND DEAL:
JULY 12, 2006 — The Department of Trade and Industry executes a memorandum of understanding (MOU) with the Zhong Xing Telecommunications Equipment (ZTE) International Investment Ltd. to cooperate in the development and implementation of various investment activities in the Philippines, including the National Broadband Network (NBN) project.
JULY 13 — President Gloria Macapagal-Arroyo announces at the Clark Special Economic Zone the creation of a cyber corridor covering the cities of Baguio, Cebu, Davao and Manila and Clark. The corridor will host call centers and outsourcing companies and will be supported through additional digital infrastructure.
AUG. 1 — Ms Arroyo names Ramon Sales, head of the government’s Information and Communication Technology (ICT) as “focal personâ€? or coordinator for the Cyber Corridor.
AUG. 7 — ZTE Corp. submits to the Commission on Information and Communications Technology (CICT), an attached agency of the Department of Transportation and Communications (DOTC), a proposal for the NBN Project.
SEPT. 4 and 6 — ZTE writes to CICT regarding clarification on the project proposal and incorporating the suggestions of CICT.
SEPT. 8 — China Eximbank, through its general manager, Li Xiaoping, writes the National Economic and Development Authority (NEDA) informing that they are ready to exchange opinions and explore cooperation opportunities after China Eximbank and ZTE held discussions resulting in the conclusion that they may be available for transaction on the NBN project.
OCT. 23 — CICT endorses ZTE’s proposal to the NEDA for further evaluation and action.
NOV. 21 — Secretary Michael Defensor wrote to Minister Bo Xilai of the Ministry of Commerce, People’s Republic of China, to verify and confirm the interest of Chinese companies in arranging a comprehensive solution, to include financial and technical support, for the development and implementation of the NBN and Distant Learning projects of the Philippine government.
DEC. 2 — Chinese Ambassador Li Jin Jun informs Presidential Chief of Staff Michael Defensor through a letter that the Chinese government intends to support the NBN project and that China has designated ZTE as the contractor.
JAN. 2, 2007 — The DOTC receives a letter from Amsterdam Holdings Inc. (AHI) dated Dec. 5, 2006 informing the DOTC of its project, Orion Network, and requesting a favorable endorsement to NEDA. Also mentioned in the letter is a request for the government to designate the DOTC as the project’s coordinating agency.
JAN. 3 — NEDA requested the DOTC with TelOf (still under CICT) to take the lead in the preparation and implementation of Cyber Corridor projects taking into consideration the requirements of concerned end-user agencies. NEDA also requested for the submission of the necessary NEDA-ICC documents to facilitate processing of the project particularly the IP-based National Broadband Network Project
FEB. 13 — Executive Order No. 603 was issued by the President transferring the TelOf and all other operating units directly supporting communications from the CICT to the direct control and supervision of the DOTC.
FEB. 14 — NEDA refers to the DOTC for assistance and recommendation on the possible reconciliation of three similar proposals: 1) the Cyber Education Project (CEP) of the Department of Education (DepEd), 2) the NBN project endorsed by CICT (ZTE project proposal) and 3) the build-own-operate (BOO) NBN project of AHI.
FEB. 19 — DOTC/TelOf officials and personnel attended the meeting at NEDA Board Room to discuss the technical details and concerns on the NBN project.
FEB. 26 — ZTE submitted to DOTC copy of their NBN proposal which they have submitted to CICT and was subsequently endorsed by CICT to NEDA.
FEB. 27 — DOTC received another letter from NEDA dated Feb. 20, 2007 requesting for the submission/endorsement of a reconciled project proposal in view of the Feb. 13, 2007 joint NEDA-ICC and Cabinet meeting wherein the DOTC was instructed to sort out possible overlaps on the Cyber Education project of the DepEd and IP Based National Broadband Network Project of the DOTC/TelOf.
MARCH 1 — DOTC/CICT submits to NEDA the evaluation made on the three project proposals and recommends the implementation of a single government IP platform.
MARCH 1-20 — ZTE submits to the DOTC a revised NBN proposal with technical solution, project feasibility report, price summary, etc.
MARCH 23 — The DOTC endorses to NEDA the revised NBN proposal of ZTE.
MARCH 26 — The NBN project is presented to the joint ICC Cabinet Committee and ICC Technical Board meeting for deliberation and approval.
MARCH 26 — Ambassador Li Jin Jun writes a letter to Ms Arroyo, conveying that the Chinese government will fully support the NBN project of ZTE and the Distance Learning project of the DepEd.
MARCH 26 — AHI offered to build the NBN for the government for $242 million, questions the DOTC’s alleged bias for ZTE that offered to build the same facility under a $262-million government-to-government loan agreement. (Reported March 27, 2007).
MARCH 29 — The NEDA board approves the implementation of the NBN project.
MARCH 30 — ICT technical working group recommends the direct contracting mode in the procurement for the supply of equipment and services for the NBN project.
MARCH 31 — DOTC officials award the contract to ZTE, saying that AHI’s unsolicited proposal lacked complete documentation necessary for it to be considered.
APRIL 10 — BAC for ICT, considering RA 9184 and the recommendation of the TWG-ICT, have resolved to recommend that the procurement for the supply of equipment and services for the NBN project will be undertaken thru direct contracting and to refer the matter to the GPPB and NEDA for approval.
APRIL 16 — DOTC writes to GPPB and NEDA requesting for opinion and approval of the procurement process for the implementation of the NBN project, respectively.
APRIL 16 — TWG submits evaluation report and recommendation on the technical aspect of the draft as input for DOTC Legal Office’s final review.
APRIL 20 — Secretary Romulo Neri of NEDA writes to Minister Bo Xilai of Ministry of Commerce and Chairman/President Li Rougu of China Eximbank endorsing the NBN project for loan financing of the People’s Republic of China under the Preferential Buyer’s Credit Facility of China Eximbank.
APRIL 21 — Transportation and Communications Secretary Leandro Mendoza and ZTE vice president Yu Yong sign the $329-million NBN contract in Boao, China, in ceremonies witnessed by Ms Arroyo.
APRIL 24 — The GPPB advises DOTC that an opinion from the Department of Justice (DoJ) may prove relevant in the DOTC’s final determination on whether the NBN contract is entered into pursuant to Section 4 of RA 9184 mandating observance of executive agreements or Section 50 of RA 9184 on Direct Contracting.
MAY 28 — DOTC requests the Department of Finance to facilitate the availment of a soft loan from the China Eximbank.
MAY 31 — DOTC requests for opinion from the DoJ on the following issues: 1) whether or not the proposed NBN project can be considered an executive agreement by virtue of MOU signed between GRP (DTI through Secretary Peter J. Favila) and ZTE and subsequent “exchange of notesâ€? between representatives of GRP and GOC and 2) granting the NBN project is deemed to be an “executive agreement,â€? would the mode of procurement fall under EO No. 423, s.2005, on alternative mode of procurement (direct contracting) or under the last sentence of Section 4 of RA 9184.
JUNE 20 — Communications Assistant Secretary Lorenzo G. Formoso III discloses at a business forum the loss of the two “sovereignâ€? contract documents — one for ZTE and the other for the CEP.
JUNE 21 — The DoJ requests for clear and legible copies of the following documents: 1) letter of Ambassador of China Li Jinjun to Presidential Chief of Staff Michael T. Defensor dated Dec. 2, 2006; 2) contract for the Supply of Equipment and Services for the National Broadband Network Project between the DOTC and ZTE Corp. and 3) the Loan Agreement with the China Eximbank.
JUNE 26 — The Senate calls for an investigation of the broadband contract, saying that ZTE has been involved in “questionable dealsâ€? in other countries.
JUNE 27 — Mendoza says the NBN contract with ZTE is still subject to review by the Department of Justice and the Department of Finance.
JULY 11 — DOTC submits to the DoJ the requested copies of 1) letter of Ambassador of China Li Jinjun to Presidential Chief of Staff Michael T. Defensor dated Dec. 2, 2206 and 2) the reconstituted NBN contract.
JULY 26 — Justice Secretary Raul Gonzalez issues an opinion that says that the contract is an executive agreement and does not need to go through a public bidding.
AUGUST — Iloilo Vice Gov. Rolex Suplico asks the Supreme Court to nullify the ZTE contract for being unconstitutional and to stop its implementation.
AUG. 6 — The President’s legal adviser, Sergio Apostol, says the project cannot be implemented because the contract is nonexistent, having been stolen in China shortly after the signing.
AUG. 7 — Trade Secretary Peter Favila says the supposed ZTE contract is just a memorandum of understanding (MOU) or Memorandum of agreement (MOA) and not a supply contract.
AUG. 9 — DOTC confirms it has signed a reconstituted supply contract with ZTE.
AUG. 25 — The Philippines and China sign a $1.8-billion loan agreement, allegedly including an amount for the NBN project.
AUG. 27 — Favila says $400 million of the $1.8 billion is not meant for any particular project like the NBN.
AUG. 28 – Nueva Vizcaya Rep. Carlos Padilla lodges a criminal complaint against Mendoza and two assistant secretaries of the DOTC at the Office of the Ombudsman for allegedly “giving undue advantage� to ZTE.
AUG. 29 — Padilla, citing a column by Jarius Bondoc in the Philippine Star, tags Commission on Elections Chair Benjamin Abalos Sr. as the poll official who allegedly lobbied for the ZTE broadband contract. Padilla says Abalos played golf with ZTE executives in Shenzhen and at the Wack Wack Golf and Country Club in Mandaluyong City just weeks before the contract was signed.
AUG. 30 — Abalos admits that he and some ZTE officials were golfing buddies and that ZTE executives paid for his trips to China. However, Abalos maintains that he never helped the company to win the deal. Abalos says he and ZTE officials met with Finance Secretary Margarito Teves at Teves’ house in Alabang, Muntinlupa, “one afternoon last year,â€? but adds that the NBN project was not discussed.
AUG. 31 — Teves confirms that he was introduced to ZTE officials at a meeting with Mendoza and Abalos and that they talked about the NBN project.
SEPT. 1 — Abalos says he called Teves and that the latter supposedly apologized for saying that Abalos was present when the project came during a discussion in Wack Wack.
SEPT. 5 — Romulo Neri, former NEDA director general and now Commission on Higher Education head, neither confirms nor denies that he was offered P200 million to support the NBN project. (A Newsbreak report would later say that Abalos offered Romulo P200 million so that NEDA would “helpâ€? with the ZTE deal.)
SEPT. 9 — Ms Arroyo talks with Chinese President Hu Jintao about the controversial NBN project on the sidelines of the Asia-Pacific Economic Cooperation Summit in Sydney, suggesting that Favila and Chinese Commerce Minister Bo Xilai work together to resolve the issue.
SEPT. 10 — AHI asks the Supreme Court to compel Malacañang to give it a copy of the contract won by ZTE. AHI also seeks for a temporary restraining order on the implementation of the government’s deal with ZTE while its petition is pending.
– AHI cofounder Jose “Joeyâ€? de Venecia III says at a forum that the supply contract with ZTE is overpriced by about $130 million to cover “commissions.â€? He describes Abalos as appearing to be the “captainâ€? of those who were brokering the ZTE deal. De Venecia says Abalos offered him $10 million in December 2006 to back off from the project.
– ZTE denies bribing government officials to bag the $329-million contract, saying that its initial offer of $262 million grew to $329 million because the government’s requirements changed.
SEPT. 11 — Acting on the petitions of Suplico and AHI, the Supreme Court issues a temporary restraining order on the implementation of the NBN project.
– Sen. Panfilo Lacson calls the President the driving force behind the deal with ZTE as he came out with a “reconstitutedâ€? copy of the supply contract.
SEPT. 12 — Sen. Juan Ponce Enrile says the “reconstituted copyâ€? Lacson presented was merely a supply agreement and that the more binding contract, the financial agreement, has not yet been approved.
In a letter to the blue ribbon committee, Mendoza begs off from attending the Senate hearing on the NBN project, saying that the two pending cases in the Supreme Court seeking to block the ZTE deal prevent him from speaking out on the matter.
SEPT. 14 — De Venecia says in an affidavit dated Sept. 11 that he was wiretapped by Abalos to monitor his conversations with ZTE officials and that it was Abalos himself, in a fit of rage, who admitted the offense sometime in February. Abalos denies the wiretap allegation and says that his lawyer is preparing to file several libel charges against De Venecia.
De Venecia says that a “mystery man� is part of the cast of characters behind the $329-million contract, but says he will reveal the person’s identity only if asked at a proper legal forum.
SEPTEMBER — De Venecia says he has received threats from powerful persons, including one that supposedly came from Mendoza’s camp. Mendoza scoffs at this allegation, calling it a “fairy tale.â€?
SEPT. 17 — The President’s husband, Jose Miguel Arroyo, boards a plane for Hong Kong on the eve of the Senate hearing on the NBN deal.
SEPT. 18 — De Venecia admits to the blue ribbon committee that the “mystery manâ€? is the President’s husband.
De Venecia says it was at the “reconciliation� meeting in mid-March at Wack Wack that Arroyo, whom De Venecia assumes was asked by Abalos to talk to him when Abalos failed to talk him out of the project, shoved a finger at him and told him to “back off.�
Other personalities present at the meeting other than himself, Arroyo, Mendoza and Abalos were Jimmy Paz (Abalos’ chief of staff), Quirino de la Torre (Abalos’ security staff), Ruben Reyes and Leo San Miguel.
In his testimony, De Venecia quoted his father as saying that Ms Arroyo asked Abalos during a golf game in Shenzhen in October last year why ZTE could not just undertake the project the way AHI had proposed (at no cost to the government).
The First Couple and Speaker Jose de Venecia Jr., during a 10-city visit in China, were invited by the ZTE president to play golf. Abalos was one of the guest players.
SEPT. 19 — Arroyo, through his lawyer, confirms that he met with De Venecia at Wack Wack, but says it was “a purely chance encounterâ€? that did not include his barking at the businessman to “back offâ€? from the NBN deal.
Arroyo says that he merely “reminded� De Venecia that his being the Speaker’s son made it inappropriate for him to get involved in government contracts. The President’s husband denies that Abalos was at the meeting, saying that only he, De Venecia and Mendoza were present. De Venecia says Arroyo’s version of the meeting was “totally false.�
SEPT. 20 — Mendoza confirms at the second Senate hearing that the meeting took place and reiterates what Arroyo had declared through his lawyer that Arroyo did not raise his voice.
Mendoza even describes Arroyo as “mild-mannered,� while portraying De Venecia as someone who dogged him and went to see him in his office “several times� to follow up on his firm’s unsolicited NBN proposal.
After the hearing, Mendoza tells reporters that it was the Speaker, the younger De Venecia’s father, who aggressively lobbied for his son’s firm to bag the contract.
Favila says he is open to modifying or even rescinding the NBN deal and says he will talk to his Chinese counterpart, Trade Minister Bo Xilai, to discuss other options to undertake the NBN project, including its “cancellation or abrogation.�
SEPT. 22 — The President suspends the NBN project “indefinitely,â€? but senators say they will continue the probe despite the suspension.
SEPT. 24 — Ms Arroyo allows Neri, who failed to attend the Sept. 20 hearing due to “intestinal flu,â€? to attend the Senate probe. Earlier, Press Secretary Ignacio Bunye said Neri was part of the President’s official delegation to the United Nations General Assembly that is scheduled to leave for New York the next day, but Neri himself later told reporters that his trip had been canceled.
SEPT. 25 — The President discloses at a meeting in Malacañang that she had the NBN project “discreetly investigatedâ€? and found that the reports of bribery tainting the project were “uncorroborated.â€?
SEPT. 26 — Neri admits at the Senate hearing that Abalos offered him P200 million in exchange for giving the approval on the NBN project. Neri says he mentioned the bribe offer to Ms Arroyo, who he says told him to decline it.
De Venecia reiterates his earlier claim that Abalos offered him a $10-million bribe, which the Comelec chair vehemently denies. Abalos also denies brokering the NBN deal for ZTE.
Entry Filed under: For the Mind, Life of Law, Philippine Cases, Philippines
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