Malacañang reiterated yesterday that the controversial $330-million broadband contract between the government and ZTE Corp. of China is not yet final amid continued protests from rival proponents over the alleged grossly disadvantageous deal.
Executive Secretary Eduardo Ermita said that at the moment, the Palace is standing by the “government-to-government” deal where the Philippine government will avail of a $330-million loan from the China Eximbank to fund the implementation of the National Broadband Network (NBN) that would link all government agencies and offices.
“From what I know, there is no finality yet on the contract, pending the decision of the Department of Justice,” Ermita said, referring to DOJ’s scrutiny of the memorandum of agreement signed in Boao, Hainan last April 21 between Transportation Secretary Leandro Mendoza and ZTE Corp. vice president Yu Yong.
Justice Secretary Raul Gonzalez had said that President Arroyo ordered him to review the contract whether it should be nullified as it might trigger a congressional inquiry and backfire on her administration.
Gonzalez said the review will be completed before the 14th Congress opens on July 23.
Meanwhile, Amsterdam Holdings Inc. (AHI), a local telecommunications firm opposing the deal, has challenged officials of the Department of Transportation and Communications (DOTC) to release to the public the details of the contract if they are not hiding anything.
AHI co-founder Jose de Venecia III pointed out that public disclosure of the deal is even more urgent after DOTC officials earlier admitted that originals of the contract were “stolen” shortly after its signing.
Gonzalez admitted that he is using the reconstituted contract as the basis for his review.
De Venecia, a son of Speaker Jose de Venecia Jr., said the cost of the ZTE proposal is suspiciously high.
He pointed out that industry estimates for such a broadband project are much lower since the technology to be used is known and commonly used in the industry.