China monitors Philippine probe of alleged bribery in its broadband contract

MANILA (AP) - China is closely watching investigations into alleged bribery in a Philippine government broadband contract won by a Chinese company, a diplomat said Saturday.

An opposition politician filed an impeachment complaint Thursday against the Philippine elections chief who has been accused of offering bribes to a Cabinet official and a businessman to push the national broadband network contract with China's Zhong Xing Telecommunication Equipment (ZTE) Corp.

ZTE has denied any irregularities.

"We are taking a close watch on the recent developments in the Philippines regarding this (broadband) project," said Liang Wentao, economic and commercial counselor of the Chinese Embassy in Manila.

"We believe that if the Filipino government, in compliance with their own domestic laws and regulations, decides to conduct investigations on certain projects contracted by foreign companies, it's their own decision," he said.

He said corruption allegations connected to the deal "are pure domestic issues of the Philippines."

The project was to be funded with a US$330 million preferential loan from China.