Controversy over broadband project won't affect RP-China relations: Palace

SHANGHAI - Malacañang said Tuesday the controversy over the $329-million National Broadband Network (NBN) project will not affect the warm relations between the Philippines and China.

Press Secretary Ignacio R. Bunye said Trade and Industry Secretary Peter Favila has explained the situation to Chinese officials through extensive back-channel discussions and the latter said they would respect the Philippine government’s position on the matter.

“This situation is properly explained and I believe that you already heard from the Chinese officials that they understand and would respect the decision of the Philippine government,” Bunye said, referring to the controversy over the NBN project to be undertaken by ZTE of China.

President Gloria Macapagal-Arroyo has ordered the suspension of the ZTE deal due to allegations of overpricing and corruption.