This news article reports the continuing events surrounding the controversial national
broadband network (NBN)
contract between the Philippines and ZTE Corp. of China. At a press conference at the EDSA Shangri-la Hotel in Mandaluyong City, Philippines Trade and Industry Secretary Peter Favila announced the suspension of the ZTE contract as well as that of the Cyber Education Project of the department of Education as ordered by Philippines
President Gloria-Macapagal-Arroyo.
The article also relates the opinions of several Philippine Senators of this action by their president. The senators are not impressed because according to them this move by the President is relatively useless since a temporary restraining order issued by the Supreme Court is already in place against the ZTE contract. The senators also said that an earlier move by the President to suspend the ZTE contract would have proven helpful in a smoother progression of the proceedings to investigate the circumstances surrounding the contract.
Following the suspension of the contract, Speaker of the House of Representatives Jose de Venecia praised President Macapagal-Arroyo's decision to suspend the contract and also expressed thanks to Chinese leaders who have stated that they will review the contents of the contract. Speaker de Venecia is a strong supporter of the Build-to-Operate Law as an alternative to the ZTE contract.
The events following the controversy so far:Representative Carlos Padilla stated that an article in the Philippine Star written by columnist Jarius Bondoc was referring to Commission on Elections Chairman Abalos as the man who was allegedly receiving special favors from officials of ZTE Corp. – a company competing for the broadband contract in the Philippines.
Filipino Businessman Joey de Venecia III (son of the Speaker of the House of Representatives and co-founder and majority stockholder of Amsterdam Holdings Inc., which is a rival of ZTE Corp. competing for the broadband deal) revealed in a Senate hearing that:* Commission on elections Chairman Abalos attempted to bribe de Venecia out of competing for the broadband deal with an amount of $10M.* First Gentleman Jose Miguel Arroyo allegedly pointed a finger at him in a threatening manner urging him to back off the broadband project.
It is expected that Chairman Abalos will be present at the Senate probe in the week that follows to answer questions relating to the on-going investigations into the controversy.