Madriaga maintains accusations vs greedy group in credibility test

MANILA, Philippines – Former ZTE consultant turned Senate witness Dante Madriaga maintained yesterday that the “Greedy Group plus plus,” including the First Couple, was involved in the allegedly overpriced $329-million national broadband network (NBN) deal.

During his four-hour credibility test at the Senate, Madriaga said former presidential chief of staff Michael Defensor also knew about the NBN project and even attended a meeting in June 2006.

He told the Blue Ribbon Oversight Office Management that Leo San Miguel, also allegedly a “Greedy Group” member who worked on the project with China’s ZTE Corp., told him Defensor was in other meetings “to see how the project was progressing on behalf of the Palace,” but only up to October 2006.

Defensor was one of the signatories in the memorandum of understanding for the project with ZTE.

Madriaga said San Miguel had informed him they needed the help of businessman Enrique Razon, a known ally of President Arroyo, when they could not get the approval of the National Economic and Development Authority (NEDA) under then director general Romulo Neri.

He stressed he did not know how Razon was able to assist them with their problems with NEDA, but that the businessman should come in because First Gentleman Jose Miguel Arroyo was already getting sick.

Madriaga noted San Miguel himself had access to Razon. San Miguel, owner of Home Cable, was also involved in the government project Telepono sa Barangay.

The witness said he met San Miguel as lobbyist for the Telepono sa Barangay as he worked at the Telecommunications Office of the Department of Transportation and Communications.

Madriaga said San Miguel had told him about the commissions, including the $41 million allegedly advanced to the “Greedy Group,” since he was the one in charge of the project design with the ZTE technical team.

The $1 million was supposedly representation fee given in August 2006; $10 million as successive fee in March 2006; and $30 million in aid of elections in April 2007.

Madriaga said equipment and services in the NBN project were overpriced for kickbacks of the “Gang of Four,” that also included resigned Commission on Elections chairman Benjamin Abalos, Ruben Reyes, and retired police general Quirino dela Torre.

He added that he had dinner several times with ZTE’s Fan Yang, who confirmed to him the advances made to the Filipino group.

He said the “Gang of Four” needed the backing of the First Gentleman when Joey de Venecia came in and could not be convinced by the group to give way to them even after offering him a bribe.

For his services, he said he received a P100,000 salary every month from either San Miguel or Dela Torre.

Madriaga said his salary was supposed to be P250,000, but he did not mind getting a lower amount because he was expecting to get part of the commissions from San Miguel.

He denied being a Trojan horse of the Palace sent to sabotage or undermine the Senate hearings by giving false testimony. He said   he went to Sen. Panfilo Lacson on his “own free will.”

Madriaga earlier said it was his friend, Archie Antonio, who sought P5 million from Lacson and other personalities in exchange for his testimony.

“It is disheartening that many people do not believe me. But I just want to say what I know about this project, and if I do not appear credible, I cannot do anything about it,” he said.

A representative of the business community said yesterday that Madriaga should undergo a psychological test to determine his credibility.

Special envoy for international trade and Philippine Chamber of Commerce and Industry chairman emeritus Donald Dee said that Madriaga has been making serious allegations without presenting evidence.

Madriaga appealed to Manila Mayor Afredo Lim to help and protect him, saying he did not have any other motives but to tell the truth.

“I have seven children, most of them still go to school…so how do I protect them after this? I have a wife who stays at home,” he said.

Senate President Manuel Villar Jr. said the Senate would provide Madriaga and his family protection even if there were doubts on his credibility.

Lacson also gave him lawyers during his credibility test to ensure his rights were protected.

As the Senate anticipates more whistleblowers to come out, Villar said it is important to show “our value for this rare breed of men by taking care of them and placing them out of harm’s way so others will have the courage to step forward, too.”

Meanwhile, Philippine National Police chief Director General Avelino Razon Jr. said the PNP is ready to provide security for Madriaga only if he would ask for it.

Razon said those who want security should submit a request. The PNP’s Police Protection and Security Office will then verify and validate the threats before security will be given, he added. – Aurea Calica, Cecille Suerte Felipe, Marvin Sy