What’s the big deal about the NBN deal?
THE whole country’s going amok over this National Broadband Network brouhaha and rage against the government is fast mounting among the young, the religious, and the Edsa die-hards. Debates on whether the President should step down or be ousted have sprouted everywhere. Rallies are being planned all over. But what the heck is everyone fussing about? Why should we even care about this aborted NBN deal?
Premise
Just as in any soap opera, the story starts with a single idea: What if we build a national broadband network to connect all government offices in the Philippines to make transactions easier and more efficient?
Cast of Characters
ZTE – Zhong Xing Telecommunication Equipment Co. Limited, a Chinese firm providing telecom equipment and network solutions to clients all over the world.
AHI – Amsterdam Holdings Inc., a Filipino company co-founded by Joey de Venecia III.
Jose “Joey” de Venecia III – One of the firsts to expose former Comelec Commissioner Benjamin Abalos’ involvement with the NBN-ZTE deal. He is the son of ousted House Speaker Jose de Venecia and the PRESIDENT of AHI.
Benjamin Abalos, Jr. – The alleged broker for ZTE; currently the center of controversy, Abalos resigned from his post as chair of the Commission on Elections in October 2007 in order to, according to him, defend himself without bringing his office down.
Romulo Neri – Former National Economic Development Authority Secretary who was later demoted to head the Commission on Higher Education. He was tasked to review the NBN project and to make recommendations to President Gloria Arroyo.
Rodolfo “Jun” Lozada, Jr. – Whistleblower and former President of the Philippine Forest Corporation, he was asked by Neri to assist him in evaluating the NBN project.
Jose Miguel “Mike” Arroyo – The First Gentleman, the alleged padrino of Abalos in pushing for ZTE to win the NBN project. It was alleged that FG was set to receive up to $70M in kickbacks from the total of $130M commission allegedly asked by Abalos.
Timeline
2006 – The idea of having a national broadband network was proposed, with ZTE being eyed as the main proponent.
September 2006 – Lozada was introduced by Neri to Chairman Abalos, ZTE President Yu Yong, Chinese Commercial Attaché Fan Yang, and to Leo San Miguel and Ruben Reyes. According to Lozada, they had lunch at Wack Wack wherein they talked about the feasibility of the project.
October 2006 – ZTE submitted a proposal to NEDA. Neri asked Lozada to review the proposal; Lozada told Leo San Miguel to fix their proposal as it is lacking in content.
November 2006 – Upon receiving endorsement of the project from Neri and Ramon Sales, former Chairman of the Commission on Information and Communications Technology (CICT), President Arroyo declared that the project be implemented under the BOT scheme.
December 2006 – AHI, headed by Joey de Venecia, submitted an unsolicited proposal for the NBN project for $240 million under the BOT scheme.
— Neri asked Lozada to reconcile the proposals of AHI and ZTE. Since GMA wanted the project to be under the BOT scheme, Lozada came up with this proposal: AHI to handle the project through BOT and ZTE to act as supplier.
— According to Lozada, Abalos told him that ZTE is amiable to the reconciled proposal but that he must “protect” $130 million as commission; De Venecia objected.
— To reconcile both camp’s differences, Lozada, Abalos, de Venecia, and some other people met with the First Gentleman over dinner at the Makati Shangri-La
— According to Joey de Venecia, Abalos approached him and asked AHI to partner with ZTE; they went to China to discuss the partnership with ZTE officials
January 2007 – Abalos’ group, Lozada, Neri, some ZTE officials, and Chinese commercial attaché Fan Yang met at the Shangri-La Makati over lunch; According to Lozada, Abalos wanted it to appear that NEDA has already approved the ZTE proposal under a loan agreement; Neri insisted that the project should be done under BOT, resulting to a heated argument between Abalos and the ZTE officials.
— Abalos, according to Lozada, threatened to have him killed; According to de Venecia, Abalos bugged his cellphone and recorded conversations he had had with his AHI partners.
February 2007 – ZTE submitted a separate proposal for $300 million.
— The NBN project was transferred from CICT to the Department of Transportation and Communications (DOTC).
March 18, 2007 – AHI sent a letter to the DOTC complaining of bias for ZTE.
March 29, 2007 – NEDA and its Investment Coordinating Council (composed of Cabinet members) approved the NBN project.
April 21, 2007 – President Arroyo flew to Boao, China to witness the ZTE-NBN contract signing; DOTC Secretary Leandro Mendoza signed in behalf of the Philippines government; the contract was signed at US$329 million.
June 20, 2007 – The two “sovereign” copies of the ZTE contract had gone missing; the contract was reconstituted from previous copies.
July 27, 2007 – Neri is transferred from NEDA to CHED.
July 30, 2007 – The Department of Justice validated the ZTE-NBN contract.
July – August
— Reports about the irregularities in the ZTE-NBN deal start to surface; Abalos’ name linked to the ZTE deal; Columnist Jarius Bondoc wrote in his column about the sexual exploits of a high-ranking Comelec commissioner who made several trips to Hong Kong and China between September 2006 and February 2007; Cong. Carlos Padilla named Abalos as the official being referred to in Bondoc’s column; Finance Secretary Gary Teves revealed that it was Abalos who had introduced him to ZTE officials.
September 3, 2007 – Malacañang issued a gag order to Cabinet officials.
September – Joey de Venecia exposed Abalos’ and Mike Arroyo’s involvement in the ZTE deal; the Senate Blue Ribbon Committee started its investigation on the NBN project.
September 23, 2007 – President Arroyo suspended the ZTE-NBN contract.
September 26, 2007 – At the Senate Blue Ribbon Committee, Neri implicated Abalos and admitted that Abalos tried to bribe him with P200 million; Neri admitted to the Senate that he had informed President Arroyo about the bribery attempt; He invoked the EO 464 when asked why the President went ahead with the project despite the bribery attempts.
October 1, 2007 – Abalos resigned as Comelec chair.
October 3, 2007 – President Arroyo scrapped the ZTE contract.
January 30, 2008 – Jun Lozada flew to Hong Kong a few hours before the start of the Senate inquiry; Neri went into hiding; the Senate issued a warrant for their arrest.
February 5, 2008 – Lozada arrived from Hong Kong but was allegedly “taken against his will” by airport and police officials; he was driven around Metro Manila and up to Laguna; he was made to sign antedated documents that would prove he had asked for security upon his arrival in Manila; He was later surrendered to his family who were waiting at the La Salle Greenhills.
February 6, 2008 – The Philippine National Police denied any knowledge about Lozada’s whereabouts; Lozada’s family filed for writ of habeas corpus; In the evening, former Presidential Chief of Staff Mike Defensor visited Lozada at the La Salle Greenhills, he told Lozada to come out to the press and deny that he was kidnapped; Defensor gave Lozada P50,000.
February 7, 2008 – At 2 a.m., Lozada, together with some nuns and the La Salle brothers, held a press conference at the La Salle Greenhills, linked Abalos and the First Gentleman to the ZTE-NBN deal, and surrendered himself to the Senate Sergeant-at-Arms.
February 8, 2008 – Lozada testified at the Senate Blue Ribbon Committee hearing.
***
NBN Quotable Quotes
Statements made famous by Lozada’s NBN deal expose.
“Sir, bubukol po ‘yan. Napakalaki niyan.”
— Lozada to Abalos when Abalos allegedly told him to protect his $130 million commission from the project
“You moderate their greed.”
— Romulo Neri, as recounted by Lozada, when Lozada told Neri that Abalos was asking him to “protect” $130 Million as commission from the NBN project.
“She’s evil.”
— Romulo Neri, as recounted by Jun Lozada, in reference to President Gloria Arroyo during a meeting Neri and Lozada had with Senators Ping Lacson and Jamby Madrigal at the Asian Institute of Management sometime in December 2007. Lacson and Madrigal corroborated Lozada’s claims. Later, several people, including former Jose de Venecia’s wife, Gina de Venecia, recounted how in several occasions Neri called GMA “evil.”
“Probinsiyanong Intsik lang po ako.”
— Lozada while explaining why he initially didn’t want to appear before the Senate Blue Ribbon Committee.
“I’ve seen the ugly side of the state. If they use it against the citizens, we can’t do anything.”
— Lozada regarding his alleged “kidnapping”
"Ang salitang 'Pilipino' ay hindi lamang nangangahulugan ng pamilya. Ang salitang 'Pilipino' ay nangangahulugan din ng bayan...'Bayang Pilipino.'
—Lozada on what he’s learned upon coming out with his exposé
"As to the Senate's summons for ZTE to appear in the hearing, ZTE cannot allow itself to be dragged into any political circus.”
— ZTE statement on its refusal to appear before the Senate Blue Ribbon Committee.
***
Tags
Probinsyanong Intsik – Jun Lozada
Bigboy – First Gentleman Mike Arroyo
Ma’m – President Gloria Macapagal Arroyo
ES – Executive Secretary Eduardo Ermita
Sec – former Socioeconomic Planning Secretary Romulo Neri
Chairman – former Commission on Elections Chairman Benjamin Abalos
***
De Numero…special edition
130 – In millions of US dollars, amount of commission allegedly being asked by former Comelec Chair Benjamin Abalos from the NBN project.
20 – In millions of pesos, amount of “Patriotic Fund” allegedly being offered by a high-ranking politician to Romulo Neri in exchange for his resignation from the Arroyo government and testimony about the NBN project.
50 to 70 – In millions of US dollars, amount of commission allegedly promised by Abalos to First Gentleman Mike Arroyo from the total $130 million commission from the NBN project.
500,000 –In pesos, amount given by Deputy Executive Secretary Manuel Gaite to Lozada’s brother as “panggastos” while staying in Hong Kong.
50,000 — In pesos, amount given by former Chief of Staff Mike Defensor to Jun Lozada as “pamalengke” upon visiting him at La Salle Greenhills last February 6; Lozada also said Defensor told him to hold a presscon and just deny that he had been kidnapped.
10,000 – Estimated number of people who attended the February 15 Makati rally held in support of Lozada and against corruption in government
4,000 – Estimated number of people who attended the February 17 mass for Lozada held at the La Salle Greenhills where his family is temporarily seeking sanctuary.
35 – Number of Australian Boer goats bought by the Philippine Forest Corporation under Lozada’s leadership for P700,000, as exposed by Senator Miriam Defensor Santiago while testing the witness’s credibility.
Premise
Just as in any soap opera, the story starts with a single idea: What if we build a national broadband network to connect all government offices in the Philippines to make transactions easier and more efficient?
Cast of Characters
ZTE – Zhong Xing Telecommunication Equipment Co. Limited, a Chinese firm providing telecom equipment and network solutions to clients all over the world.
AHI – Amsterdam Holdings Inc., a Filipino company co-founded by Joey de Venecia III.
Jose “Joey” de Venecia III – One of the firsts to expose former Comelec Commissioner Benjamin Abalos’ involvement with the NBN-ZTE deal. He is the son of ousted House Speaker Jose de Venecia and the PRESIDENT of AHI.
Benjamin Abalos, Jr. – The alleged broker for ZTE; currently the center of controversy, Abalos resigned from his post as chair of the Commission on Elections in October 2007 in order to, according to him, defend himself without bringing his office down.
Romulo Neri – Former National Economic Development Authority Secretary who was later demoted to head the Commission on Higher Education. He was tasked to review the NBN project and to make recommendations to President Gloria Arroyo.
Rodolfo “Jun” Lozada, Jr. – Whistleblower and former President of the Philippine Forest Corporation, he was asked by Neri to assist him in evaluating the NBN project.
Jose Miguel “Mike” Arroyo – The First Gentleman, the alleged padrino of Abalos in pushing for ZTE to win the NBN project. It was alleged that FG was set to receive up to $70M in kickbacks from the total of $130M commission allegedly asked by Abalos.
Timeline
2006 – The idea of having a national broadband network was proposed, with ZTE being eyed as the main proponent.
September 2006 – Lozada was introduced by Neri to Chairman Abalos, ZTE President Yu Yong, Chinese Commercial Attaché Fan Yang, and to Leo San Miguel and Ruben Reyes. According to Lozada, they had lunch at Wack Wack wherein they talked about the feasibility of the project.
October 2006 – ZTE submitted a proposal to NEDA. Neri asked Lozada to review the proposal; Lozada told Leo San Miguel to fix their proposal as it is lacking in content.
November 2006 – Upon receiving endorsement of the project from Neri and Ramon Sales, former Chairman of the Commission on Information and Communications Technology (CICT), President Arroyo declared that the project be implemented under the BOT scheme.
December 2006 – AHI, headed by Joey de Venecia, submitted an unsolicited proposal for the NBN project for $240 million under the BOT scheme.
— Neri asked Lozada to reconcile the proposals of AHI and ZTE. Since GMA wanted the project to be under the BOT scheme, Lozada came up with this proposal: AHI to handle the project through BOT and ZTE to act as supplier.
— According to Lozada, Abalos told him that ZTE is amiable to the reconciled proposal but that he must “protect” $130 million as commission; De Venecia objected.
— To reconcile both camp’s differences, Lozada, Abalos, de Venecia, and some other people met with the First Gentleman over dinner at the Makati Shangri-La
— According to Joey de Venecia, Abalos approached him and asked AHI to partner with ZTE; they went to China to discuss the partnership with ZTE officials
January 2007 – Abalos’ group, Lozada, Neri, some ZTE officials, and Chinese commercial attaché Fan Yang met at the Shangri-La Makati over lunch; According to Lozada, Abalos wanted it to appear that NEDA has already approved the ZTE proposal under a loan agreement; Neri insisted that the project should be done under BOT, resulting to a heated argument between Abalos and the ZTE officials.
— Abalos, according to Lozada, threatened to have him killed; According to de Venecia, Abalos bugged his cellphone and recorded conversations he had had with his AHI partners.
February 2007 – ZTE submitted a separate proposal for $300 million.
— The NBN project was transferred from CICT to the Department of Transportation and Communications (DOTC).
March 18, 2007 – AHI sent a letter to the DOTC complaining of bias for ZTE.
March 29, 2007 – NEDA and its Investment Coordinating Council (composed of Cabinet members) approved the NBN project.
April 21, 2007 – President Arroyo flew to Boao, China to witness the ZTE-NBN contract signing; DOTC Secretary Leandro Mendoza signed in behalf of the Philippines government; the contract was signed at US$329 million.
June 20, 2007 – The two “sovereign” copies of the ZTE contract had gone missing; the contract was reconstituted from previous copies.
July 27, 2007 – Neri is transferred from NEDA to CHED.
July 30, 2007 – The Department of Justice validated the ZTE-NBN contract.
July – August
— Reports about the irregularities in the ZTE-NBN deal start to surface; Abalos’ name linked to the ZTE deal; Columnist Jarius Bondoc wrote in his column about the sexual exploits of a high-ranking Comelec commissioner who made several trips to Hong Kong and China between September 2006 and February 2007; Cong. Carlos Padilla named Abalos as the official being referred to in Bondoc’s column; Finance Secretary Gary Teves revealed that it was Abalos who had introduced him to ZTE officials.
September 3, 2007 – Malacañang issued a gag order to Cabinet officials.
September – Joey de Venecia exposed Abalos’ and Mike Arroyo’s involvement in the ZTE deal; the Senate Blue Ribbon Committee started its investigation on the NBN project.
September 23, 2007 – President Arroyo suspended the ZTE-NBN contract.
September 26, 2007 – At the Senate Blue Ribbon Committee, Neri implicated Abalos and admitted that Abalos tried to bribe him with P200 million; Neri admitted to the Senate that he had informed President Arroyo about the bribery attempt; He invoked the EO 464 when asked why the President went ahead with the project despite the bribery attempts.
October 1, 2007 – Abalos resigned as Comelec chair.
October 3, 2007 – President Arroyo scrapped the ZTE contract.
January 30, 2008 – Jun Lozada flew to Hong Kong a few hours before the start of the Senate inquiry; Neri went into hiding; the Senate issued a warrant for their arrest.
February 5, 2008 – Lozada arrived from Hong Kong but was allegedly “taken against his will” by airport and police officials; he was driven around Metro Manila and up to Laguna; he was made to sign antedated documents that would prove he had asked for security upon his arrival in Manila; He was later surrendered to his family who were waiting at the La Salle Greenhills.
February 6, 2008 – The Philippine National Police denied any knowledge about Lozada’s whereabouts; Lozada’s family filed for writ of habeas corpus; In the evening, former Presidential Chief of Staff Mike Defensor visited Lozada at the La Salle Greenhills, he told Lozada to come out to the press and deny that he was kidnapped; Defensor gave Lozada P50,000.
February 7, 2008 – At 2 a.m., Lozada, together with some nuns and the La Salle brothers, held a press conference at the La Salle Greenhills, linked Abalos and the First Gentleman to the ZTE-NBN deal, and surrendered himself to the Senate Sergeant-at-Arms.
February 8, 2008 – Lozada testified at the Senate Blue Ribbon Committee hearing.
***
NBN Quotable Quotes
Statements made famous by Lozada’s NBN deal expose.
“Sir, bubukol po ‘yan. Napakalaki niyan.”
— Lozada to Abalos when Abalos allegedly told him to protect his $130 million commission from the project
“You moderate their greed.”
— Romulo Neri, as recounted by Lozada, when Lozada told Neri that Abalos was asking him to “protect” $130 Million as commission from the NBN project.
“She’s evil.”
— Romulo Neri, as recounted by Jun Lozada, in reference to President Gloria Arroyo during a meeting Neri and Lozada had with Senators Ping Lacson and Jamby Madrigal at the Asian Institute of Management sometime in December 2007. Lacson and Madrigal corroborated Lozada’s claims. Later, several people, including former Jose de Venecia’s wife, Gina de Venecia, recounted how in several occasions Neri called GMA “evil.”
“Probinsiyanong Intsik lang po ako.”
— Lozada while explaining why he initially didn’t want to appear before the Senate Blue Ribbon Committee.
“I’ve seen the ugly side of the state. If they use it against the citizens, we can’t do anything.”
— Lozada regarding his alleged “kidnapping”
"Ang salitang 'Pilipino' ay hindi lamang nangangahulugan ng pamilya. Ang salitang 'Pilipino' ay nangangahulugan din ng bayan...'Bayang Pilipino.'
—Lozada on what he’s learned upon coming out with his exposé
"As to the Senate's summons for ZTE to appear in the hearing, ZTE cannot allow itself to be dragged into any political circus.”
— ZTE statement on its refusal to appear before the Senate Blue Ribbon Committee.
***
Tags
Probinsyanong Intsik – Jun Lozada
Bigboy – First Gentleman Mike Arroyo
Ma’m – President Gloria Macapagal Arroyo
ES – Executive Secretary Eduardo Ermita
Sec – former Socioeconomic Planning Secretary Romulo Neri
Chairman – former Commission on Elections Chairman Benjamin Abalos
***
De Numero…special edition
130 – In millions of US dollars, amount of commission allegedly being asked by former Comelec Chair Benjamin Abalos from the NBN project.
20 – In millions of pesos, amount of “Patriotic Fund” allegedly being offered by a high-ranking politician to Romulo Neri in exchange for his resignation from the Arroyo government and testimony about the NBN project.
50 to 70 – In millions of US dollars, amount of commission allegedly promised by Abalos to First Gentleman Mike Arroyo from the total $130 million commission from the NBN project.
500,000 –In pesos, amount given by Deputy Executive Secretary Manuel Gaite to Lozada’s brother as “panggastos” while staying in Hong Kong.
50,000 — In pesos, amount given by former Chief of Staff Mike Defensor to Jun Lozada as “pamalengke” upon visiting him at La Salle Greenhills last February 6; Lozada also said Defensor told him to hold a presscon and just deny that he had been kidnapped.
10,000 – Estimated number of people who attended the February 15 Makati rally held in support of Lozada and against corruption in government
4,000 – Estimated number of people who attended the February 17 mass for Lozada held at the La Salle Greenhills where his family is temporarily seeking sanctuary.
35 – Number of Australian Boer goats bought by the Philippine Forest Corporation under Lozada’s leadership for P700,000, as exposed by Senator Miriam Defensor Santiago while testing the witness’s credibility.
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