Palace mulls new NBN project

Malacañang on Wednesday said the government would pursue the implementation of a national broadband project in a different form when the noise over the ZTE contract dies away. “Given that the government entered into it, knowing that there is a need for it, then there will be other ways, " Executive Secretary Eduardo Ermita said at his weekly press conference. “For the moment we’ll let the situation die down and then look for other ways so that we can undertake a similar project that would achieve the same objective," he said. Ermita ruled out a possible renegotiation of the ZTE deal. He also said the project should be finished before President Gloria Macapagal Arroyo’s term ends in 2010. Ermita, however, ruled out a renegotiation of the ZTE contract because it would only invite public outcry sparked by allegations of bribery and overpricing surrounding the scrapped contract. He said Malacañang is leaving up to the Ombudsman the investigation of allegations of bribery and other irregularities on the $329.48-million contract between the government and ZTE for the NBN project. Ermita categorically said ZTE’s contract for the project has been canceled. He said he was not aware of the reasons behind the President’s decision. At one point, he said it “became politically advisable" for the President to come up with the decision to scrap the project. However, he said there was no mention of the P26-billion Cyber-education project of the Department of Education (DepEd) with China. He raised the possibility of negotiating with another country that could extend loans at concessional rate for such a project, avoiding the mistakes in the ZTE transaction. Ermita also said all issues hurled against the controversial ZTE contract, including the outcome of the Senate investigation, would end up with the Ombudsman and Malacañang would rather leave it at that. He said there are three pending complaints before the Office of the Ombudsman, one of which was filed by Nueva Vizcaya Rep. Carlos Padilla, raising irregularities in the transaction. Executive privilege invoked If the Senate decides to go on with its investigation and invite Cabinet members, Ermita said the principle of “executive privilege" would still be invoked when the situation would call for it. Reading a portion of the Supreme Court ruling on “executive privilege," he said this covers conversations and correspondence with the President, discussions in closed door Cabinet meetings, information between inter-government agencies prior to the conclusion of treaties. “If we feel the condition is such that we have to invoke executive privilege, then we will invoke executive privilege," Ermita said. - GMANews.TV