Ombudsman affirms graft raps vs Gloria Arroyo, three others in NBN-ZTE deal mess

The Office of the Ombudsman has affirmed criminal charges against former President and now Pampanga Rep. Gloria Macapagal-Arroyo and three co-accused in the alleged unlawful deal with China's ZTE Corp. for the implementation of the national broadband network (NBN) project. Arroyo is facing two counts of graft and for violation of the Code of Conduct and Ethical Standards for allegedly using her influence to push for the approval of the NBN-ZTE project despite her having been informed of irregularities in the proposed $329-million project. Named co-defendants in the first graft case were former First Gentleman Jose Miguel Arroyo, resigned Commission on Elections chairman Benjamin Abalos Sr. and former Transportation Secretary Leandro Mendoza. While the anti-graft body upheld the original charges, it junked a motion for reconsideration filed by complainants Bayan Muna Rep. Teddy Casiño, former Gabriela Women’s Party Rep. Liza Maza and Bagong Alyansang Makabayan (Bayan) Carol Araullo seeking for upgrading of the cases to plunder, a non-bailable offense. “Contrary to the claim of the complainants, the sworn statement of Dante Madriaga cannot by itself establish all the elements of the crime of Plunder alleged to have been committed by former President Arroyo in conspiracy with her husband Jose Miguel Arroyo, along with Mr. Abalos and Mr. Mendoza. Such a charge cannot rest solely on a verbal allegation but must be substantiated by further proof of direct participation,” the Ombudsman said in a 19-page resolution submitted Wednesday to the Sandiganbayan Fourth Division. The resolution was approved by Ombudsman Conchita Carpio-Morales on recommendations of Assistant Special Prosecutors Louella Mae Oco Pesquera, Jacinto M. dela Cruz Jr. and Marlon N. Ramos. Acting Prosecution Bureau IV director Rabendranath Uy and deputy special prosecutor Cornelio M. Somido endorsed the resolution for approval but Special Prosecutor Wendell E. Barreras-Sulit inhibited from participating in the case review “to remove any cloud of suspicion and/or bias” because she was an appointee of Arroyo to the OSP. Abalos and Arroyo, both under detention, did not file motions for reconsideration when the Ombudsman filed the cases last December 28. Mendoza and Mr. Arroyo questioned the basis for the graft case against them primarily on the ground that the NBN-ZTE deal was eventually scrapped. Mendoza likewise argued he had no direct participation in the negotiations for the contract, noting that allegations of bribery surfaced when the deal was still being handled by the Commission on Information and Communication Technology (CICT) and before the Department of Transportation and Communications entered the picture. Mr. Arroyo said he should not have been implicated because he was a private person and was not a contracting party or a representative of one relative to the NBN-ZTE project. The Ombudsman however said: “The rescission of the contract on October 2, 2007 after its perfection and prior to the filing of the Information before the Sandiganbayan was made in bad faith and cannot be used by the accused to their advantage. The act of rescinding the contract that was evidently disadvantageous was [made]…precisely to extricate themselves from criminal accountability for a fatal flaw they knew from the inception of the transaction,” the Ombudsman. — LBG, GMA News