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Madriaga: ‘Tongpats’ proves San Miguel had hand on ZTE


ZTE's 'GANG OF FOUR' A resigned chairman of the Commission on Elections, a cable TV executive, a businessman linked to the “Hello, Garci" controversy, and a retired police general composed the so-called “Gang of Four" accused of brokering the allegedly anomalous $329.48-million National Broadband Network (NBN) project. BENJAMIN ABALOS SR Benjamin Abalos Sr resigned as chair of the Comelec in October 2007 after an impeachment complaint was filed against him before the House of Representatives. Romulo Neri, former chief of the National Economic Development Authority, accused Abalos of attempting to bribe him in connection with the NBN-ZTE deal. In August 2007, Nueva Vizcaya Rep. Carlos Padilla alleged that Abalos brokered for the NBN project. Abalos denied brokering for the project, but admitted that he knew some officials in ZTE Corp. He admitted making four trips to China and playing golf there. He also admitted that ZTE officials, whom he said were his golfing buddies, hosted and paid for the trips. Jose “Joey" de Venecia III, alleged that Abalos offered him US$10 million to withdraw his proposal on the NBN project. Abalos was mentioned in the "Hello Garci" tape, which refers to the alleged wiretapped conversations in the alleged vote rigging in the 2004 polls. LEO G. SAN MIGUEL Established Home Cable in 1990, and was its chief operating officer, until the company was bought by the Philippine Long Distance Corporation in 1999. He later on transferred to Asia Cable Communications, a distributor of prime cable programs. San Miguel who hails from Naga City, also served as the Philippine Cable Television Association’s president from 1995 to 1996. He is a radio electronics engineering graduate of Feati University in Manila, who later on took up a computer course at Princeton University in the US. He is former technical adviser of ZTE Corp. for the NBN project. During the March 11, 2008 inquiry at the Senate, San Miguel denied that he had any knowledge in the alleged kickbacks in the NBN project. Sen. Panfilo Lacson claimed San Miguel knew the “flow of bribe money" from China to the Philippines. Whistleblower Rodolfo Noel Lozada also claimed that San Miguel was present in practically all the meetings of Abalos with ZTE executives. De Venecia III also accused San Miguel of being with Abalos when the latter went to Shenzhen, China to allegedly ask ZTE for additional advances. During the March 11 inquiry at the Senate, San Miguel said he made four trips to China in 2006 for the NBN-ZTE deal. RUBEN CESAR C. REYES A wealthy real estate businessman from Mandaluyong City said to be Abalos's golfing buddy. Reyes, who reportedly left for the US in October 2007, was linked to the “Hello, Garci" controversy. His voice was allegedly recorded in the wiretapped “Garci" tapes when he called former poll commissioner Virgilio Garcillano on June 4, 2004. In the June 2004 tapes, the voice presumed to be that of Reyes inquired about an employee of the Comelec who could be used by the opposition against then presidential candidate Gloria Macapagal Arroyo. He also allegedly asked Garcillano if he could help party-list groups supported by Mrs Arroyo to get more votes in the May 2004 polls. Reyes, is said to be close to police and military generals from the PMA class of 1972 and 1983. He is also reportedly a friend of the President’s brother, Diosdado “Buboy" Macapagal Jr, an adopted member of PMA class 1972. Senate witness Dante Madriaga, a consultant of San Miguel, claimed Reyes was the “designated recipient" of the alleged $46-million “payoff" from ZTE for the swift approval of the NBN deal. QUIRINO DELA TORRE Dela Torre, a retired police general is said to be San Miguel’s business partner. He was director of the Philippine National Police Computer Service during the term of Lacson as PNP chief. He belonged to the PMA class of 1972, and retired from the PNP in 2005. Dela Torre was said to be a security adviser of Abalos. Dela Torre also served under former PNP chief Leandro Mendoza, now Transportation and Communications secretary, who signed the NBN-ZTE deal in April 2007. - GMANews.TV
MANILA, Philippines - Dante Madriaga, former consultant of China’s ZTE Corp. for the National Broadband Network project on Wednesday came out with documents, which he said proved that his former boss, Leo San Miguel, knew about the alleged “tongpats" or kickback in the NBN-ZTE deal. Madriaga showed GMA News a three-page document, which he said was emailed to him by technology expert and businessman San Miguel almost two years ago. He said the documents showed that the NBN-ZTE deal was marked up thrice for 20 percent each, where the “Filipino group," composed of the “Greedy Group" that included the “First Couple," would corner $70 million. Malacañang and President Gloria Macapagal Arroyo’s husband, Jose Miguel Arroyo had repeatedly denied the latter’s involvement in the botched NBN-ZTE deal. During Tuesday’s Senate inquiry into the NBN controversy, San Miguel denied he had any knowledge in the alleged kickbacks in the $329.48-million NBN project. A copy of the document from Madriaga showed that on July 22, 2006, “Leo San Miguel," with e-mail address lsanmiguel@gmail.com, sent mail to Madriaga, asking the latter to “check" the data on the ZTE pricing for the supposed NBN project. (Click here for copy of ‘tongpats’ e-mail) The e-mail read: “I have attached a file to serve as a format paki check mo gna pare and enter the data for the phase 2 and 3 the way we think the pricing of ZTE will be. I also failed to segregate the new features introduced by ZTE on their proposal." Markup Madriaga said the initial price for the project, minus the tongpats, was based on the proposal submitted by US firm Arescom, which also got interested in the NBN project. He claimed the ZTE Corp. made the first 20 percent markup of the pricing made by Arescom. Madriaga said the second 20 percent increase was for the “consortium" composed of the ZTE and the “Filipino group," which included the “First Couple," former Elections commission chairman Benjamin Abalos Sr, Ruben Cesar Reyes, Quirino dela Torre, and San Miguel. The third 20 percent markup was again for ZTE, and the "Filipino group," according to Madriaga. He claimed the First Couple and unnamed government officials would get $35 million from the alleged $70-million payoff. Abalos would bag $20 million, Reyes would get $10 million, while San Miguel and Dela Torre would corner $2.5 million each, according to Madriaga. He said he was willing to undergo a lie detector test to prove his accusations against San Miguel. "Come out, and come out clean," Madriaga told San Miguel. Payoff Earlier, Madriaga claimed ZTE had released a total of $46 million to the "Greedy Group" for the approval of the NBN project. He said Reyes, a businessman, and a golfing buddy of Abalos was the "designated recipient" of the $46-million "payoff." He said the first release worth $1 million was given to the group by ZTE in August 2006. This was followed by $5 million released in December of the said year. The third tranche of $10M was allegedly released in March 2007, while the fourth — $30 million — was given to the group in April 2007, according to Madriaga. GMA News on Wednesday tried but failed to get the side of San Miguel on the issue because he was advised by his lawyers not to entertain media queries. Dela Torre and Reyes remain unavailable for comment according to GMA News. - GMANews.TV