Former NEDA official: GMA lowered NBN cost by P3.9 B

MANILA, Philippines - Pampanga Rep. Gloria Macapagal-Arroyo’s lawyers scored yesterday at the Sandiganbayan after a former official of the National Economic and Development Authority (NEDA) testified that the ex-President was able to lower the cost of the national broadband network (NBN) deal by P3.9 billion.

The testimony of Fortunato Abrenilla, former legal staff director of NEDA, was contrary to allegations that Arroyo endorsed a project grossly disadvantageous to the government.

He disclosed that during a meeting of the NEDA Board on March 27, 2007, Arroyo ordered then assistant secretary Lorenzo Formoso III of the Department of Transportation and Communications to configure the NBN project to avoid overlapping of its services and coverage with the cyber education program.

Abrenilla said the former leader also asked Formoso if the four percent annual interest rate of the loan from the Chinese government could be lowered.

In a subsequent meeting, Formoso reported that as per Arroyo’s instructions, they were able to remove all the overlaps in the system, reducing the project cost from $379 million to $330 million.

Abrenilla also disclosed that the interest rate of the loan was also lowered from four percent to three percent per year, or a savings of P1.6 billion in the 10-year repayment period.

He said Arroyo managed to reduce the cost of the NBN project in the total amount of P3.95 billion.

Arroyo, her husband Jose Miguel Arroyo and former elections chief Benjamin Abalos are facing graft charges for their alleged involvement in the anomalous NBN project with China’s ZTE Corp. in 2007.

NBN deal whistle-blower Jose de Venecia III, who testified on Monday under cross examination by defense lawyers, practically cleared Arroyo of the graft charges after telling the court that he believes she did not receive any kickback from the allegedly anomalous contract.