Arroyo had no part in NBN-ZTE deal—De Venecia III

Former President and now Pampanga Rep. Gloria Macapagal-Arroyo: ‘Not involved’. INQUIRER FILE PHOTO

MANILA, Philippines—The government’s main witness in the graft case involving the botched $329-million national broadband network (NBN) deal with China’s ZTE Corp. said he believed former president and now Pampanga Rep. Gloria Macapagal-Arroyo did not have any participation in the transaction.

Jose “Joey” de Venecia III, who took the witness stand in the Sandiganbayan hearing and was cross-examined by defense lawyer Lawrence Arroyo (no relation) on Monday, agreed it was “unacceptable” for people who were involved in the deal to be dropping her name.

De Venecia, son of former Speaker Jose de Venecia Jr., said he believed Arroyo was not involved in the NBN deal but that she was just dragged into the controversy.

Arroyo’s coaccused are her husband Mike Arroyo, former Elections Chairman Benjamin Abalos and former Transportation Secretary Leandro Mendoza. They have been charged with graft for their alleged involvement in the botched NBN-ZTE deal in 2007.

De Venecia did not mention Mike Arroyo in his sworn affidavit in the case as he merely referred to seven people, led by Abalos, whom he met at the Wack Wack Country Club in the early part of 2007 for a supposed reconciliatory meeting between himself and the proponents of the ZTE project.

De Venecia admitted his company, Amsterdam Holdings, Inc., which was the rival of ZTE in the broadband project, stood to earn at least P400 million a year if awarded the project.

ZTE’s proposal, however, was the one endorsed by the Department of Transportation and Communications, and the National Economic and Development Authority. The NBN-ZTE deal was later scrapped by Arroyo following allegations of corruption.—Cynthia D. Balana