OSG asks SC to dismiss petitions against ZTE

The Office of the Solicitor General (OSG) yesterday asked the Supreme Court to dismiss petitions seeking to nullify the controversial $329-million national broadband network project of the government with China’s ZTE Corp. on the grounds that it is advantageous to the Philippine government.

In a 111-page comment to the petitions filed by Iloilo Vice Gov. Rolex Suplico and Amsterdam Holdings Inc., Solicitor General Agnes Devanadera stressed that ZTE’s proposal for the NBN project emerges as the cheapest when overall project cost is matched against the other proponents.’

According to the OSG, ZTE’s proposal matches government’s intention to construct and operate its very own national broadband network that will serve the Information and Communications Technology (ICT) requirements of all government agencies.

The OSG said that AHI’s proposal seeks to create a privately-owned broadband and cellular network to provide cellular phone services to the general public while targeting government as its main subscriber.

Arescom, on the other hand, merely seeks to put up a satellite-based network connecting the Department of the Interior and Local Government and selected local government units.

In addition, the ZTE proposal would cover almost the entire country while AHI will only first cover up to third class municipalities and Arescom’s proposal is limited to 21 selected regional centers.

The OSG added that ZTE is a recognized player in the integration of telecommunication systems and is the largest listed telecom company in the Hong Kong and Shenzhen stock exchanges. It is also known as China’s third largest telecom giant.

AHI, according to the OSG, is a holdings company with no experience in telecommunications and no verifiable technology partners. The OSG also noted that AHI had failed to specify how it intends to finance the project.

The OSG maintained that the NBN project to be undertaken by ZTE and funded by the People’s Republic of China through the China Export-Import Bank is a valid executive agreement not covered by the Government Procurement Reform Act and the Build-Operate-Transfer Law (BOT).

Meanwhile, the OSG added that none of the laws cited by Suplico prohibits government from providing for its own communication requirements.

Suplico, according to the OSG, has no legal standing to file the case due to his failure to show any direct injury or substantial interest in it. The OSG added that the vice governor is not a party to the contract which is covered by a valid executive agreement between the Philippines and China.