Despite botched ZTE deal, Mendoza tells new admin to pursue broadband project

President Gloria Macapagal Arroyo's transport secretary who inked a controversial national broadband network deal with a Chinese firm in 2007 said on Wednesday that the incoming administration could look into reviving the botched project to help connect Philippine government offices. The Philippines and Myanmar are the only Asia Pacific countries without a national broadband program, said Executive Secretary Leandro Mendoza, who was Transportation and Communication secretary who signed the deal with Zhong Xing Telecommunications Equipment Corp. (ZTE) in 2007. “The reconnection among government offices is important. That will really connect the country electronically and even integrate. That is the purpose of NBN (National Broadband Network) — to integrate all the systems now existing in government," he said. Local government offices in underdeveloped municipalities do not have broadband services "so they really need government intervention on electronic connection," Mendoza added. The $329-million NBN-ZTE deal was one of the worst controversies that hit the Arroyo administration, because it was allegedly overpriced, with the President, First Gentleman Jose Miguel Arroyo, and former Elections chair Benjamin Abalos reportedly receiving kickbacks. [See: Timeline of the ZTE Controversy] In April 2007, Mendoza, in his capacity as DOTC chief, signed the deal with ZTE Corp. vice president Yu Yong. President Arroyo aborted the deal in October 2007, when allegations of corruption hounded her government. Last month, the Office of the Ombudsman sustained its earlier decision charging Abalos and former Socioeconomic planning secretary and now Social Security System chief Romula Neri with graft. However, the First Couple and those linked to the controversy were exonerated. On Wednesday, Mendoza said those questioning the Ombudsman's decision is welcome to bring the matter up before the Supreme Court. "Everybody is entitled to [going to the Supreme Court]. They have the right. But insofar as we are concerned.. the Philippines really needs this [national broadband network project]," the executive secretary said. - SMD, RJAB Jr., GMANews.TV