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Ex-poll chief Abalos absolved from graft over NBN-ZTE deal


The Sandiganbayan on Wednesday absolved former Commission on Elections chairman Benjamin Abalos from graft charges over the botched $329-million ZTE-National Broadband Network (NBN) deal in 2007.

"Accused Benjamin Abalos is acquitted for the charge against him for failure of the prosecution to establish his guilt beyond reasonable doubt," the Fourth Division said in its 43-page decision.

Abalos was accused of taking advantage of his position as Comelec chairman when he allegedly brokered for China's Zhing Xing Telecommunications Equipment Inc. (ZTE) to secure a $329-million contract for the government’s NBN project, in exchange for commissions in 2007 under the term of then President Gloria Macapagal-Arroyo.

The case stemmed from the alleged anomalous National Broadband Network (NBN) project that the government entered into with Chinese company Zhing Xing Telecommunications Equipment Inc. (ZTE) worth $329 million 

The Fourth Division said the prosecution was only able to prove that Abalos attended meetings with ZTE and officials of the Department of Transportation and Communications based on the testimonies of Jose de Venecia III and star witness Rodolfo "Jun" Lozada.

The prosecution, however, failed to prove that the former poll chief brokered the deal and received kickbacks, the court added.

"The failure of the prosecution to sufficiently establish its allegation that the accused brokered for ZTE for a fee in the concluded NBN-ZTE contract has rendered moot the legal issue on whether the alleged act constitutes the offense defined under RA No. 3019 (h),” the court’s ruling read.

Based on the information of the case, Abalos took advantage of his position as Comelec chairman in ensuring that ZTE would get the project in exchange for commissions.

The Ombudsman said Abalos went to the extent of “attending conferences, lunch meetings and golf games with ZTE officials.”

The Ombudsman said Abalos in one instance also bluntly asked from ZTE officials, in the present of witness Jose “Joey” De Venecia III, the balance of his commission from NBN project.

The Ombudsman said Abalos also offered P200 million bribe to then NEDA director general Romulo Neri to approve the project and $10 million to De Venecia to “back off” from competing with ZTE in the project.

De Venecia was then the president and general manager of Amsterdam Holdings Inc. (AHI) who was also a bidder for the broadband project.

In its decision, however, the Fourth Division said all the prosecution was to prove was that Abalos brokered between ZTE and AHI and not between the government and the ZTE.

“All in all, the evidence only proved that accused was brokering the collaboration between AHI and ZTE, where ZTE would supply equipment to AHI while AHI would contract with the Philippine government for the operation of the NBN,” the resolution read.

“It was not able to establish that he brokered the signed contract between ZTE and the Philippine Government and that he did so for a fee,” it added.

Whistleblower Rodolfo “Jun” Lozada Jr., technical adviser to then NEDA secretary general Neri, had bared during the trial that Abalos received a total of $130 million commission for the project.

Lozada further said the project was overpriced by $67 million.

In its decision, however, the court maintained that the alleged overpricing of the project was not included in the information of the filed case.

“Overpricing, however, is not part of the allegations in the present [case] information …the Court is confined by the contents of the Information to the alleged acts of the accused on the matter of brokering for fee in the signed contract between ZTE and the Philippine government,” the court said.

The court further pointed out that De Venecia, during his testimony, also admitted that he was not sure if Abalos received kickbacks from the deal.

“When JDV III was asked how much kickback did ZTE give to the Philippine officials, he stated the following: ‘I don’t know’; ‘there’s an overprice by 100%’ and ‘I don’t know if the cabal of Chairman Abalos were receiving kickbacks’,” the court said quoting De Venecia’s testimony during the hearing.

“I feel much relieved. Parang nabunutan ka ng tinik dahil nga dito sa verdict na ito… Siyempre, for the last years it has affected me, pero hindi ako nawalan ng paniniwala na somehow lalabas ang katotothanan,” Abalos said in a chance interview with reporters after the court ruling was read before him.

Abalos said that though he does not want to pre-empt any future ruling of the court, he has high hopes that he will also be acquitted in the other graft case in connection with the NBN-ZTE deal.

“Let’s leave it to the good Lord. Anyhow, sabi ko  nga sainyo, as long as ang katotohanan ay nasa panig ninyo, wala kang dapat katakutan,” Abalos said.

Abalos is facing a separate graft case with the Fourth Division as co-accused of Arroyo also in connection with the approval of the NBN-ZTE deal allegedly despite apparent irregularities.

Arroyo canceled the project when reports of irregularities started hitting the headlines in 2008. — ALG/VVP/RSJ, GMA News

 

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