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ZTE-NBN deal annexes open to public; Neri on brink of contempt

By Angie M. Rosales

11/21/2007

With the joint Senate committees investigating the ZTE-National Broadband Network (NBN) deal rejecting the request of ZTE Corp. and its lawyers to make the annexes of the broadband contract avail-able for scrutiny only in executive session, these documents are now deemed open to public scrutiny.

Sen. Manuel “Mar” Roxas II, chairman of the Senate committee on trade and com-merce and co-chairman in the NBN probe, said the denial of the request of ACCRA lawyers in behalf of their client ZTE Corp., ef-fectively makes the annexes “A” and “B” part of the public domain.

Annexes “A” and “B” of the aborted supply contract between the government through the Department of Transportation and Communications (DoTC) and ZTE Corp. pertain to the Priced Bill of Quantities and Technical Specification, respectively. In their letter to the committees, ACCRA lawyers argued that these annexes contain proprietary and confidential information, including trade secrets of their client.

Roxas said the original copies of the supply contract and the annexes are inside a safe that could only be opened by ACCRA lawyers as only they know the combination of the safe’s lock.

The panels ordered the Senate sergeant-at-arms to ensure that the safe does not leave the Senate premises and that the safe be opened, whether by the ACCRA lawyers or “forcibly, if necessary.”

The Palace yesterday barred former Socio-Economic Planning Secretary Romulo Neri from appearing again before the Senate where he was expected to confirm or deny the allegations that the President ordered him to approve the purported highly-overpriced ZTE-broadband project despite her having been made aware of the alleged P200-million bribe offer for Neri to approve the ZTE contract.

Most senators, however, could not be prevented on insisting on his appearance in the next hearing even as some pro-administration colleagues tried to steer the proceedings to a halt by enjoining them to first question before the Supreme Court (SC) the continued invocation of executive privilege by Malacañang.

Executive Secretary Eduardo Ermita barred Neri from appearing before the Senate saying the Palace advised Neri that he is constrained from being further interrogated – especially on matters where senators would question him whether Mrs. Arroyo followed up on ZTE-NBN project, asked to prioritize its approval or proceed with its approval after the Chief Executive was told about the alleged bribe by resigned poll body chair Benjamin Abalos, Sr. as these are within the context of so-called executive privilege.

But most senators sitting as members of the blue ribbon, trade and commerce and national defense and security, except for Senators Juan Ponce Enrile and Joker Arroyo, decided to vote against accepting Malacanang’s position. They moved to support the decision of overall chairman Sen. Alan Peter Cayetano in giving Neri a “show cause” order on why he should not be cited for contempt.

Minority Leader Aquilino Pimentel Jr. said that it was obvious that Senators Enrile and Arroyo were into forestalling the last few public hearings of the three committees, to end the hearings.

“They were trying to use legal arguments which were not warranted by the letter of Ermita himself. It does not say that Neri is prevented from appearing. What the letter says is that, he can invoke executive privilege when asked certain questions. But that is not covered by the entire range of the expected testimony of Neri because Ermita is trying to project himself as clairvoyant, what questions will be asked,” but he stressed that the probe will go on instead of leaving it hanging while waiting for a high court decision, “which they seem to want to happen,” Pimentel said in an interview with the Tribune after the hearing.

Cayetano said the same as he sent this message to the Executive: “I advise Malacañang that if it wants us to wrap it up, fully cooperate, then we’ll wrap it up right away,” stressing that the reason the probe is being delayed is the non-cooperation of the Palace.

“I don’t think anyone dispute how important his (Neri) testimony is and the fact that Malacañang is hiding something….So if we accept his (Neri) reasoning, then he has to attend the next hearing and we won’t hold him in contempt. But if the committee won’t accept his explanation, then the next step is to have a vote on holding him in contempt and when we hold him in contempt, there are also several options to that including being under the custody of (the Senate’s) sergeant-at-arms – whether here in the Senate or somewhere else,” Cayetano said.

Before arriving at a consensus, Senate probers debated lengthily on how they should treat Neri after he was a no-show in the hearing despite the issuance for the fourth time of a subpoena.

Enrile triggered the debate that lasted for more than an hour before the invited resource persons were able to testify, when he questioned Cayetano’s move on Neri.

“I think there must be a point of closure of testimony here. What else is there that must be ferreted out for this Cabinet member, for us in the legislature, if we really want to write a legislation, is the purpose of the demand for him to appear here, for him to reveal facts that may incriminate him if indeed there is a criminal act committed in the course of his conduct as a public officer,” Enrile said.

Senator Arroyo, while seconding the position of Enrile, pointed out a loophole in Ermita’s letter sent to the three committees, in which he claimed cannot be used against Neri.

Both Enrile and Sen. Arroyo repeatedly insisted that the ultimate decision will rest now with the courts.

Pimentel pointed out that what the two majority senators were arguing about does not have any grounds. “There’s nothing in this letter that says that Neri should not appear, nothing.

He stressed that Neri must appear. “I support the chairman in his desire to exhibit a little more patience to allow Neri to show cause why he should not be cited for contempt,” Pimentel said, ending the debate and paving for the issue in being put to a vote.

Having lost the battle, Enrile described as unbelievable the testimony of an executive of Amsterdam Holdings Inc. (AHI) whom he earlier alluded to have attempted to secure the ZTE project through purported influence peddling courtesy of Speaker Jose de Venecia Jr.

“I’m satisfied that, indeed, things like these happen when people are hiding behind the veil of anonymity,” said Enrile in interrogating AHI’s Ernesto “Sonny” Garcia.