SC bars ex-NEDA chief Romulo Neri from holding public office over NBN-ZTE deal

The Supreme Court (SC) has permanently barred former National Economic and Development Authority (NEDA) director-general Romulo Neri from joining government service over his involvement in the botched $329-million national broadband network project with Chinese firm ZTE Corp.

In a decision dated July 5, the SC Third Division reversed the Court of Appeals’ (CA) ruling that found Neri, who was NEDA chief from 2006 to 2007, guilty of simple misconduct.

The SC penalized Neri for grave misconduct because he “actively brokered ZTE's bid by using his public position despite knowing the corruption involved in the project,” the ruling said.

Aside from perpetual disqualification from reemployment in the government service, the SC also canceled his civil service eligibility, as well as forfeited his leave credits and retirement benefits. 

“Here, the Court of Appeals erred in deeming the misconduct as only simple, seeing how the elements of corruption and clear intent to violate the law are quite patent,” the decision read.

“The Constitution and our laws demand a high standard of ethics from public officials employees. Petitioner's acts undoubtedly fell short of this standard and diminished the people’s confidence in the government,” it added.

During the administration of then-President Gloria Macapagal-Arroyo, Neri testified in a Senate hearing that former Commission on Elections chairperson Benjamin Abalos had bribed him P200 million for the deal while they were playing golf.

When asked why Arroyo still accepted ZTE’s proposal despite the bribery allegations, Neri invoked executive privilege.

In April 2009, the Office of the Ombudsman suspended Neri for six months without pay for grave misconduct.

On appeal, the CA in July 2013 found Neri liable only for simple misconduct.

Unsatisfied with the CA’s action, Neri brought the matter to the SC.

However, the SC said there was substantial evidence proving that Neri was guilty of grave misconduct.

The high court pointed out that he admitted to attending a dinner hosted by Abalos and Chinese embassy and ZTE officials, which he downplayed as an “innocent social event.”

“Petitioner cannot escape culpability by saying that accepting such invitations are ordinary diplomatic protocols,” the SC said through Associate Justice Marvic Leonen.

Citing the Ombudsman’s argument, the SC said Neri failed to show that the dinner was arranged for an official function.

“Worse, he could not account for why Abalos and the ZTE officials were present in the dinner,” the SC said.

The SC also said it could not accept Neri’s argument that he was merely following Arroyo’s orders.

“As part of the Board of the National Economic and Development Authority, petitioner cannot pass on his liability to the President,” the decision stated. 

“His vote and opinion on the matter must be viewed separately from the President’s. His roles as the director-general of the agency and the vice-chair of its board cannot be emasculated as a powerless position, blindly following the President’s. All these make it clear that petitioner committed grave misconduct,” it added.

Arroyo scrapped the deal in 2007 amid allegations of irregularities in the awarding of the contract. In October last year, the SC affirmed the Sandiganbayan's decision that cleared her of graft raps over the controversial deal. — VBL, GMA News