MANILA, Philippines -- President Gloria Macapagal-Arroyo?s statement about knowing that the national broadband network contract was ?flawed? had been ?lost in translation? when it was reported in media, her spokesman said Tuesday.

"The President categorically denies that she said that the deal, or the contract, is flawed. It was misinterpreted. It was lost in translation," Anthony Golez, deputy presidential spokesman, told reporters at the Palace.

Golez issued the clarification three days after Arroyo's interview with radio station dzRH, and two days after Senate President Manuel Villar said that the President's admission could be grounds for her impeachment.

At the same time, Golez reiterated that the President had moved to cancel the project after she was informed of alleged anomalies surrounding it.

He said the President had tasked Trade Secretary Peter Favila to talk to his Chinese counterparts.

"They were going towards the cancellation of the contract. Now, the question is, why five months after?... There is a process. Remember, we are talking about two different economies, two different friendly neighbors that concerns two governments, you can't just withdraw it," he said.

According to a transcript of the radio interview that was released by the Office of the Press Secretary, the program host asked the President about the status of the $329-million contract between the government and China's ZTE Corp.

The President?s reply: "Una sa lahat, hindi ko gusto ng katiwalian. Ang taumabayn ay galit sa katiwalian, ganun din ako, galit din ako sa
katiwalian. Kaya itong proyektong ito, oras na may pag-uusap na may anomalya, ay agad kong kinansela -- agad-agad na gumawa ako ng hakbang para kanselahin."

"Kanselado na iyon, matagal na. Oras na may sumbong sa akin, tiningnan ko na iyong paraan kung papaano kanselahin. Nagsumbong sa akin the night before the signing of the supply contract pero hindi pa naman kasi -- that was only one of many signings," the President said based on the transcript.

Asked what "anomalies" the President was referring to, Golez said: "I will just stick to what the President would say, na merong nagsumbong
sa kanya na may problema [that someone told her that there was a problem]."

The President has not identified who told her about the alleged "anomaly."

A former government consultant, Rodolfo Lozada Jr., told a Senate investigation that the President's husband, Jose Miguel Arroyo, and former Commission on Elections (Comelec) chairman Benjamin Abalos benefited from the alleged overpricing of the ZTE contract.

Former socio-economic planning secretary Romulo Neri also accused Abalos of allegedly trying to bribe him to favor the ZTE bid, and that he told the President about the alleged offer.