Arroyo men gang up on Lozada
By Michael Lim Ubac, Gil C. Cabacungan Jr., Dona Pazzibugan
Philippine Daily Inquirer
First Posted 01:09:00 02/09/2008
Filed Under: NBN deal
MANILA, Philippines -- President Gloria Macapagal-Arroyo's attack dogs went on the offensive even as Rodolfo Lozada Jr. was detailing his ordeal and alleged irregularities in the National Broadband Network (NBN) project before a Senate inquiry Friday.
Chief Presidential Legal Counsel Sergio Apostol called Lozada a "crying" man, seeing him wiping away tears during his nationally televised testimony.
"They say he's a Chinese from the province. Bagay sa iyo ideport ka. Magulo ka dito (You should be deported because you're troublesome)," Apostol said.
Environment Secretary Lito Atienza said Lozada engaged in "distortions" when the resigned head of the Philippine Forest Corp. (Philforest) accused him of involvement in his abduction and in the alleged administration attempt to cover up the broadband scandal.
Atienza, whose department oversees Philforest, said, "I don't think there's any kidnapping at all."
Ma'am & ES
Presidential deputy spokesperson Anthony Golez disputed Lozada's claim that Atienza had told him, while he was under police custody, that Ms Arroyo and Executive Secretary Eduardo Ermita knew about his whereabouts following his abduction.
Golez said Lozada was merely speculating about the identity of "Ma'am and ES" that Atienza was referring to in a phone conversation with Lozada.
The President is usually referred to as "Ma'am" in deference to her stature and position, while Ermita is called "ES," which stands for his post as executive secretary.
"Anybody can call a lady ma'am and not necessarily the President," said Golez.
He said Lozada was himself unsure of what he's talking about.
Told that Lozada claimed to have been forced several times to sign documents for "the comfort of Malacañang," Golez said: "We can't comment on that. We were not there when that was said."
Self-dealing executive
Administration Sen. Miriam Defensor-Santiago portrayed Lozada as a self-dealing government executive with political ambitions who acted as an agent for Jose de Venecia III, the first whistle-blower on the broadband scandal.
During the Senate inquiry, Santiago said he was testing the credibility of the witness and came out with documents purportedly showing a trail of irregularities that Lozada had committed as Philforest chief.
She produced a P5-million insurance policy taken by Philforest with Insular Life with his wife acting as the agent. Lozada said that he approved the insurance to increase the earnings of idle funds in his office.
"He was dealing with himself. He is the president of Philforest which has a contract with the corporation where he also is a representative," said Santiago.
Mea culpa
But Lozada said "mea culpa" when Santiago confronted him with documents that showed Philforest leased out a 50-hectare piece of land in Antipolo to a company controlled by Lozada.
"There are certain things I did in my life that I would like to change. But whatever respect I have for myself, I want to keep it. I am afraid I might lose my soul, I admit to that, mea culpa," said Lozada.
Santiago also rattled off a list of contracts entered into by Gabriel Multimedia Services owned by his brother that did not go through the mandatory bidding. She also questioned Lozada's purchase of a Toyota Camry worth P2.2 million and a four-wheel drive Toyota Hi-Lux which Lozada said was for Philforest's use.
She asked Lozada about his purchase of 35 imported goats at a total cost of P700,000 to which Lozada conceded was "expensive."
Santiago said Philforest published education materials and posters with a prominent picture of him distributed in Bicol province claiming that Lozada had verbally declared that he would run for public office. Lozada denied Santiago's charge.
Blockbuster
"His story is very gripping...it has all the ingredients of a blockbuster: there is a lot of money, there is a lot of corruption involved. But the problem is he has no evidence to back up all his assertions," said Santiago following the hearing.
Santiago said Lozada might have committed a violation of the Anti-Graft and Corrupt Practices Act, because he admitted that a lot of contracts were carried out without public bidding.
Sen. Juan Ponce Enrile, saying he was testing Lozada's morality, questioned why Lozada went along with the NBN deal despite the kickbacks involved.
'Permissible zone'
In explaining, Lozada spoke of his personal "permissible zone" and "forbidden zone" levels when it came to commissions from government projects. He said kickbacks of 22 percent were a "norm" in government transactions.
Lozada admitted he himself was no saint when it came to taking advantage of his former government post as Philforest president. He said with a smile that his permissible zone had just been blown away by Santiago.
He said he received no remuneration or commissions for serving as a consultant to former Socioeconomic Secretary Romulo Neri to evaluate project proposals.
"Usually he asks me to join meetings. I always have free lunch and dinner. I'm very cheap," Lozada said in Filipino and English.
Asked if he was willing to testify in a criminal trial of those involved in corruption, he said "yes, I am already here."
No case yet
Transportation Secretary Leandro Mendoza, a former Philippine National Police chief, said Lozada would need additional "documentary and physical evidence" to prove his case. Mendoza said testimonial evidence was not sufficient.
"Now, there is no case yet. The (evidence) is insufficient," he said.
Deputy Presidential Spokesperson Lorelie Fajardo said President Arroyo was not bothered at all that the Senate inquiry could fuel another political crisis.
She said Ms Arroyo stayed the whole day in Mindanao. "In other words, she's focused in her work."
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