Columns Senator Pimentel US Should Be Asked to Extradite Bagman of NBN-ZTEgate’s “Gang Of Four”
| US Should Be Asked to Extradite Bagman of NBN-ZTEgate’s “Gang Of Four” |
enate Minority Leader Aquilino “Nene” Q. Pimentel, Jr. (PDP-Laban) today asked the Senate to formally request the United States to extradite a member of a four-man group that brokered and negotiated the grossly-overpriced $329-million national broadband network (NBN) project that was awarded to China’s ZTE Corporation.
Senator Pimentel made the suggestion on the basis of the revelation by surprise witness Dante Madriaga, a former technical consultant for the botched telecommunications project, that Ruben Reyes, the alleged treasurer or bagman of the group, had fled to the United States last October after the Senate started its inquiry into the NBN scandal.
“I think we can invoke our extradition treaty with the US for those people who are seeking haven in the US from our investigation,” Senator Pimentel said.
In his testimony before the Blue Ribbon Committee, together with the Defense Committee and Trade and Commerce Committee, Mr. Madriaga disclosed that the ZTE Corp. had made a total of $41-million advanced payments to the group, which he dubbed the “gang of four,” in three installments, which were allegedly received by Mr. Reyes.
Mr. Madriaga said the $1-million fee for representation expenses was received by the group in August 2006, followed by a “success fee” of $10 million in March, 2007. He said the group, with Mr. Reyes as recipient, was given another $30 million in April 2007 following the signing of the supply contract between ZTE and the Philippine government in Boao, Fujian, China, which was personally witnessed by President Gloria Macapagal-Arroyo.
According to Mr. Madriaga, the $30-million was supposed to be spent for the campaign expenses of administration candidates in the May 2007 elections but was instead deposited in a Hong Kong bank and later transferred in a bank in Cayman islands.
Senator Pimentel said the Blue Ribbon Committee, chaired by Sen. Alan Peter Cayetano, should lose no time in initiating the extradition request which will be coursed through the Department of Foreign Affairs and Department of Justice.
“I would suggest very strongly to the committee to start the process so that we can invoke that extradition treaty because I know that the Americans are very, very strict regarding those engaged in money laundering and corruption,” he said.
Aside from Mr. Reyes, the other members of the brokers’ group were identified by Mr. Madriaga as former Commission on Elections (COMELEC) chairman Benjamin Abalos, retired Police Gen. Quirino “Torch” de la Torre and businessman Leo San Miguel.
Mr. Madriaga also mentioned a certain Jimmy Paz who represented Mr. Abalos in the group’s meetings whenever the COMELEC chief was busy with other appointments.
Mr. Abalos is now in the US supposedly as part of a prize he won in golf tournament.
Upon Mr. Pimentel’s request, the Blue Ribbon Committee had also issued a subpoena to Yu Yong and Fan Yang, president and vice president for finance respectively, of ZTE Corp. Fan Yang was erroneously identified in previous reports as a commercial attaché of the Chinese embassy in Manila.
Stressing the importance of the testimonies of Yu Yong and Fan Yang, Mr. Pimentel said the senators want to verify from them Mr. Madriaga’s claim he had worked with them as technical consultant. He also pointed out that Fan Yang was pinpointed by Mr. Madriaga as the main source of information that a $41-million cash advance had already been paid by the ZTE to the Reyes-Abalos group. # # #
Source:BusinessWorld
A SURPRISE witness in the Senate hearings on the scandal-tainted National Broadband Network (NBN) contract with Chinese firm Zhong Xing Telecommunications Equipment Co. Ltd. (ZTE Corp.) yesterday directly linked President Gloria Macapagal-Arroyo and her husband Jose Miguel T. Arroyo who allegedly benefited from alleged multimillion-dollar kickbacks.
Dante Madriaga, who invited himself to the probe, claimed he was the technical consultant of ZTE Corp. for the NBN and detailed the so-called advancements totaling $41 million to the so-called "gang of four," namely Ruben Reyes; his immediate boss Leo San Miguel, local vice-president for ZTE; Chief Superintendent Quirino D. dela Torre; and former Commission on Elections chairman Benjamin S. Abalos, Jr.
Mr. Reyes was identified as a golf buddy of Mr. Abalos, Mr. San Miguel was former executive vice-president and chief operating officer of MSO Home Cable and former vice-chairman of the Philippines Cable TV Association, while Mr. dela Torre is director of the Philippine National Police computer service according to the PNP Web site.
Mr. Madriaga claimed the First Couple was "automatically" part of the "50-50 share" in the supposed advancements.
He recalled what Mr. San Miguel had told him: "We are protected here because nobody will block us [in this deal]."
Mr. Madriaga recalled he was hired by his "compatriot" Mr. San Miguel, who told him of all the advances, adding that the "Filipino group" supposedly requested for an upfront $1 million in August 2006, a "success fee" of $10 million in March 2007 and $30 million in April 2007 that the "greedy group" demanded "in aid of elections" to fund administration candidates in the May 2007 midterm polls, he said.
He claimed another $5 million was requested by the group in December 2006 for Jose "Joey" P. de Venecia, co-founder of losing bidder Amsterdam Holdings, Inc. But Mr. De Venecia walked out from a meeting in China when he learned of the offer.
Mr. Madriaga noted that the real cost of the project was only $50 million, saying this was "padded" by the "Filipino group" and some ZTE officials.
"The kickbacks there were exponential," Mr. Madriaga said of both the Filipino and ZTE groups.
The current price of the canceled project was $329.48 million. Whistle-blower Rodolfo Noel I. Lozada, Jr. claimed the original price was $132 million and ballooned to $262 million due to the $130-million kickback. Transportation officials claimed the higher amount was due to the project's wider coverage.
Messrs. De Venecia and Lozada, who were in the same hearing, both denied having personal knowledge of Mr. Madriaga.
Mr. Madriaga said the alleged advances were also told to him by Fan Yang, a "high official" of ZTE who disbursed funds at that time.
He said he had talked to Ms. Fan about 15 to 20 times, and that the Chinese official got angry on the project's slow progress since the first advance payment was remitted. He added the official claimed she would be fired if nothing comes out of the project.
Mr. Madriaga denied reports he was claiming P5 million from Mr. Lacson in exchange for his testimony.
The Blue Ribbon and trade and commerce committees initially was cautious on hearing Mr. Madriaga since it was only yesterday morning that he told Mr. Lacson he was ready to take the witness stand.
Mr. Madriaga is a mechanical engineer and information technology expert.
He was advised to put down in writing his testimony, with the aid of the committees' counsels, to distinguish facts from hearsay.
Malacañang, as expected, belittled the statements of Mr. Madriaga.
"The new statement of another so-called witness is no different from the allegations of Mr. Lozada, that is purely allegation. These allegations by 'installment' unless proven through the processes dictated by our laws would only remain as allegations," said Deputy Presidential Spokesman Anthony T. Golez, Jr.
"We also find it difficult to believe for a mere technician-consultant of a company would know so much about the resident or her family." — Bernard U. Allauigan
As posted by Winda Lagumbay Petilla of Canada in various Overseas-Filipino e-newsgroups
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