MANILA, Philippines -- After claiming repeatedly that President Gloria Macapagal-Arroyo did not admit that the National Broadband Network (NBN) deal with China’s ZTE Corp. was flawed during a radio interview on Saturday, Malacañang Wednesday conceded that she had used the word “anomaly” to describe it.

But Transportation and Communications Secretary Leandro Mendoza, Trade Secretary Peter Favila and Executive Secretary Eduardo Ermita quickly surmised at a press conference in the Palace that their boss might have been referring to allegations made by ZTE witnesses in the Senate.

They made the admission after reporters pointed out that the President had indeed used the word, belying the claim of Press Secretary Ignacio Bunye and other Palace spokespersons that Ms Arroyo only mentioned “the slightest indication of impropriety.”

After reading the transcript of the President’s radio interview with Joe Taruc of dzRH, Mendoza said: “It is clear here ... so pinag-uusapan lang yung anomalya. Di sinasabi na may anomalya (There is talk about an anomaly. She isn’t saying that there is an anomaly).”

To which Ermita said: “Parang merong insinuation pero di naman sinasabing meron (It’s as if there’s an insinuation, but she isn’t saying there is).”

‘Anomalya’

In the Saturday interview, Ms Arroyo was asked about the real status of the NBN project --whether it was canceled or suspended.

She said that she, too, was outraged by corruption, just like the rest of the Filipino people, and added that she canceled the project as soon as she heard about the “anomaly”:

“Kaya itong proyektong ito, oras na may pag-uusap na may anomalya, ay agad-agad kong kinansela, agad-agad na gumawa ako ng hakbang para kanselahin.”

Ms Arroyo said somebody told her about the “anomaly” on the eve of the signing on April 21, 2007, but that she couldn’t cancel the signing in Hainan, China, because it would be rude to the Chinese government.

She canceled the deal five months later.

Mendoza, who signed the supply contract with ZTE in behalf of the Philippine government, said he was one of those who had suggested to Ms Arroyo to cancel the deal because a “commercial” issue had turned into a “national security issue.”

He denied any knowledge that the scrapped deal was laced with kickbacks.

Mendoza did not give a categorical answer when told by the Philippine Daily Inquirer that Ms Arroyo canceled the deal in September 2007, after then National Economic and Development Authority Director General Romulo Neri told the Senate that he was offered a P200-million bribe by then Commission on Elections Chair Benjamin Abalos Sr., ostensibly in exchange for the NEDA’s approval of the deal.

If not flawed, why cancel?

Asked whether it was the so-called “political noise,” or Neri’s testimony, which corroborated an earlier testimony by businessman Jose de Venecia III, that was the “anomaly” alluded to by the President, Mendoza said:

“I can’t answer that. Siguro allegations lang ... But of course ... the proper authority to determine if there is a problem is the court.”

Favila insisted that Ms Arroyo did not say that the project was flawed.

“So I went to the extent of explaining that I saw the transcript [of the interview], we studied it, She did not say that. That’s my explanation,” he said.

When asked why the President canceled the deal if it was not anomalous and aboveboard, as claimed by the Palace, Mendoza said there was nothing in the transcript that said the deal was attended by any anomaly.”

In a chorus, reporters challenged this assertion, insisting that Ms Arroyo had uttered the word.

This prompted Mendoza to say: “I don’t know. But I don’t see it. I did not hear it.”

He added cryptically: “Alam mo, maraming nag-uudyok e. As I said, maraming nagre-recruit. Maraming nag-uudyok. Maraming nagsa-suggest. But of course, may sariling isip naman tayo. We don’t feel merong laglagan. As I’ve said, the case is now with the court.”