ZTE denies Madriaga's claim
By Riza T. Olchondra
Philippine Daily Inquirer
First Posted 18:10:00 02/27/2008
Filed Under: NBN deal, Graft & Corruption
MANILA, Philippines -- Chinese telecommunications firm ZTE Corp. has denied that it advanced $41 million to ensure that it would be awarded the Philippine government's national broadband network (NBN) project.
ZTE admitted it consulted Dante Madriaga, the latest whistle-blower in the NBN controversy, while it was preparing its bid for the controversial project.
But the firm denied that Madriaga ever became part of the team that drafted the company's NBN proposal or negotiated requirements to arrive at the final draft. It also denied it paid a government official to get the deal, saying there was no need because it had the superior proposal.
"Mr. Madriaga never directly took part in NBN project operations. We think Mr. Madriaga testified last Tuesday on the Senate on matters he did not participate in. Despite taking an oath in the Senate hearing, Mr. Madriaga's testimony was obviously not based on factual knowledge," ZTE said in a statement released on Wednesday afternoon.
A ZTE communications officer who did not wish to be named declined to be more specific on how much participation Madriaga had as a consultant, saying only that he was asked for an opinion and some information during preparations but he was not directly involved.
In August 2006, ZTE Corp. submitted to the Commission on Information and Communications Technology its NBN proposal with the price of $262 million to cover parts of the country.
When the government asked for nationwide coverage and cutting-edge technology, ZTE said, the company revised its proposal accordingly and submitted its final proposal with the price of $329 million in February 2007 to the Department of Transportation and Communications, which was project leader by then.
"All of the ZTE contract documents regarding the NBN project (have) been disclosed by the Senate and (are) available for public review. The documents would show that ZTE's proposal adopts state-of-the-art technology and would provide nationwide coverage," the ZTE statement said.
"Madriaga's claim that the total cost of the NBN project should have only been $50 million cannot stand its ground judged by the industry common sense.”
ZTE said it joins the call of the Catholic Bishops’ Conference of the Philippines that the investigation agencies should "use their distinct and different powers of inquiry into alleged corruption cases, not for their own interests, but for the common good."
The company added it was confident that its NBN proposal would withstand judicial scrutiny and that the outcome of the ongoing judicial and impartial investigation would eventually vindicate its good name and reputation in the global telecommunications industry.
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