Court of Appeals finds Neri guilty of misconduct over NBN-ZTE deal

(Updated 6:45 p.m.) A Court of Appeals (CA) division has found former Socio-Economic Planning secretary Romulo Neri guilty of misconduct for recommending the approval of the $329-million national broadband network deal with Chinese firm ZTE Corp. in 2007 despite the bribery allegations that hounded the project.

In its decision, however, the CA Sixth Division said there was no substantial evidence showing that Neri's recommendation was "tainted with corruption."

While the court junked for absence of merit Neri's petition questioning the April 21, 2009 decision from the Office of the Ombudsman convicting him of grave misconduct, it also modified the ruling.

In the 12-page decision released Monday, the CA found Neri guilty of the lesser administrative offense of "simple misconduct" instead. Neri, who has retired from the government, was ordered to pay a fine equivalent to his salary for six months as penalty.

Playing golf

Neri had introduced Senate whistleblower Rodolfo Lozada to former Commission on Elections (Comelec) chairman Benjamin Abalos, described in the CA decision as the person "highly interested in pursuing a telecommunications project with the government" during the administration of former president Gloria Macapagal-Arroyo.

The then-NEDA Secretary eventually processed the approval of the NBN project with ZTE as the proponent, despite the alleged P200 million bribe offered to him by Abalos.

The CA questioned Neri's attendance in social events with ZTE officials, considering his authority over the project's approval.

"The foregoing acts of petitioner obviously constitute misconduct of a government official. As head of NEDA, tasked to approve project proposals for the government, petitioner should have avoided playing golf and having lunch meetings with ZTE officials," the CA said.

"He should not have recommended the approval of the NBN Project considering his full knowledge of bribery involving high-ranking officials," it added.

The botched NBN-ZTE deal was one of the biggest corruption scandals that rocked the Arroyo administration.

No evidence of bribery

Although it upheld the Ombudsman's ruling, the CA downgraded the offense committed by Neri, saying there was no evidence that he sought or accepted a bribe in exchange for endorsing the deal.

"This Court is inclined to disagree with the ruling of the Ombudsman that the elements of corruption, clear intent to violate the law and flagrant disregard of established rules, which would qualify the misconduct as grave are present in the instant case," the court said.

"He may not have said no or ignored the same, but it was not established that he accepted the P200 million bribe money nor solicited such," the CA added.

Nevertheless, the court rebuked Neri for lack of propriety in dealing with the investors.

In its ruling, the CA division said Neri's actions "undermined" both the public's faith in the government and the trust and confidence of investors, especially foreign ones.

"As public official, he is required at all times to exercise the highest sense of integrity and dedication to his duty. As stressed by the 1987 Constitution, public office is a public trust and public officers must at all times be accountable to the people, serve them with utmost responsibility, integrity, loyalty, and efficiency, act with patriotism and justice, and lead modest lives," it said.

Arroyo

Aside from Neri and Abalos, also implicated in the controversy were Arroyo and her husband, former First Gentleman Jose Miguel "Mike" Arroyo.

Arroyo, who was re-elected representative of Pampanga's second district in the May 13 elections, has been slapped with graft charges in connection with the NBN-ZTE scandal, to which she pleaded not guilty.

The former President also pleaded not guilty to the charges filed against her for alleged violation of the provision on Republic Act 6713 (Code of Conduct and Ethical Standards for Public Officials).

Mr. Arroyo also pleaded not guilty to the charges.

Arroyo is currently under hospital arrest at the Veterans Memorial Medical Center in Quezon City over separate charges involving the alleged misuse of Philippine Charity Sweepstakes Office (PCSO) funds also during her administration.— KBK/YA, GMA News