MANILA, Philippines?Romulo Neri was the director general of the National Economic and Development Authority (NEDA) when the government signed the $329-million National Broadband Network (NBN) deal with China?s ZTE Corp.

The project called for the installation of a telecommunications network linking government offices throughout the country.

The deal was sealed on April 21, 2007, with then President Gloria Macapagal-Arroyo witnessing the contract signing between then Communications Secretary Leandro Mendoza and ZTE vice president Yu Yong in China.

The deal was allegedly overpriced by about $130 million to cover kickbacks.

Jose de Venecia III, cofounder of Amsterdam Holdings Inc., which failed to win the contract, claimed that then First Gentleman Jose Miguel Arroyo intervened to get the deal approved, a charge the latter denied.

Neri testified at the Senate hearing that during a golf game then Commission on Elections Chair Benjamin Abalos offered him P200 million in exchange for endorsing the contract. Neri said he told Arroyo about Abalos? alleged bribe offer and that she told him not to accept it.

In succeeding hearings, Neri invoked ?executive privilege? when the senators demanded details of his conversations with Arroyo on the NBN-ZTE deal.

The Senate investigation led to the resignation of Abalos from the Comelec and ultimately, the scrapping of the project.

In November 2007, two impeachment complaints were filed against Arroyo over the NBN-ZTE project. Administration allies in the House of Representatives scuttled the complaints.

In August 2009, the Office of the Ombudsman dropped graft charges against Arroyo, saying she was immune from suit and could not be criminally charged. The Ombudsman also dropped charges against her husband, saying there was no evidence against him.

On the other hand, the Ombudsman found Neri?who was president of the Social Security System at that time?guilty of misconduct.

The Ombudsman also directed the Office of the President to suspend Neri for at least six months, and recommended that graft charges be filed against him and Abalos.

The Ombudsman noted that Neri did not categorically refuse the bribe offer and ?constantly conferred? with Abalos in lunches and golf games.

In October 2009, the Court of Appeals issued a 60-day temporary restraining order stopping the implementation of the Ombudsman order. The Ombudsman finally filed graft charges against Neri and Abalos in the Sandiganbayan on May 28 this year.

Neri posted a P30,000 bail on June 21. The next day, the anti-graft court ordered the Bureau of Immigration to issue a hold departure order on Neri and Abalos, barring them from leaving the country. Inquirer Research