‘GMA, Mike part of greedy group’

Ex-ZTE consultant says $41M given as ‘commission’

BY DENNIS GADIL

FORMER ZTE consultant Dante Madriaga yesterday told Senate probers that the President Arroyo, her husband Mike and the group of Benjamin Abalos Sr., which he referred to as the "greedy group plus, plus," have received some $41 million in advances from China’s ZTE Corp. on the anomalous national broadband network contract.

Asked by Sen. Jinggoy Estrada who among them was the greediest, Madriaga said "it would be the First Couple."

"From the beginning alam ko naman na involved sila, dahil sinabi sa akin yon," he said.

Madriaga said he was hired by the ZTE Corp., which had been awarded the contract, as chief designer-consultant on the persuasion of Leo San Miguel, a member of Abalos’ group, in May 2006. But while he was ZTE’s consultant, Madriaga said his immediate boss was San Miguel.

He said San Miguel is the godfather to one of his seven children and was even close to former Sen. Ramon Magsaysay Jr.

Madriaga said he was forced to come out to deny that he was asking money in exchange for his testimony.

He said it was a certain Archie Antonio, a public works contractor, who was brokering for his appearance in the Senate and that he was not aware of the people approached. He said he did not approve of the activities of Antonio.

Madriaga said the group of Abalos initially received $1 million from the ZTE in August 2006 as "representation" fund.

He said Abalos’ group was represented by Ruben Reyes, the so-called bagman of the former elections chairman.

He said San Miguel was aware that the money was coursed through wire transfer.

He said Jimmy Paz, another friend of Abalos, and a retired Gen. Quirino dela Torre was also part of the "greedy group."

He said the group of Abalos was doing their transactions through a bank in Hong Kong.

Madriaga said he learned from the group of Abalos that the $1 million advance was made possible when the First Gentleman came into the picture and vowed full support for the project.

He said the national broadband network project was initially rejected by DOTC assistant secretary Frank Perez, son of former Justice Secretary Hernando Perez, but it became smooth sailing when Perez was replaced by Assistant Secretary Lorenzo Formoso.

He said the second tranche came in March 2007 in the amount of $10 million, split between the First Couple and the group of Abalos.

Madriaga said he was also made aware from then on that advances extended by ZTE were shared by the First Couple and the group of Abalos.

He said the group of Abalos also demanded another $5 million from ZTE, which would be used to pacify Jose de Venecia III and convince him to back out from the project.

But Madriaga said the $5 million advance was not granted after De Venecia walked out during a meeting with ZTE officials in Shenzen, China.

De Venecia said he was not aware of the $5 million that was to be offered to him but confirmed walking out during a meeting with ZTE officials in China after learning of the $130 million commission being demanded by Abalos.

Madriaga said the last tranche of $30 million was advanced by ZTE in April 2007 purportedly to finance the campaign of the administration ticket.

But Madriaga said ZTE officials represented by Fan Yang, China’s commercial attaché to the Philippines, insisted that President Arroyo personally witness the contract signing of supply agreement in Boao, China before any further advances could be released.

"Fan Yang confirmed that (to me). Because galit na galit na sila. They said if nothing comes out of it (NBN-ZTE deal), they will be fired," he said.

He said this was the sole reason the President went to China and this was "in aid of elections."

Madriaga said the advances made the contract price balloon from the original $130 million to $189 million to $269 million and finally, $329 million.

He said at the price of $269 million, the contract was already overpriced by $140 million with $70 million each going to the First Couple and the group of Abalos.

He said the contract firmed up at $329 million after the proponents decided for 100 percent coverage.

FULLY AWARE

Madriaga insisted that he believed that President was fully aware of the anomalies in the contract early on.

"She knew about the overprice as far as back as July (2006)," he said.

He said this could be confirmed by DOTC undersecretary Ramon Sales whose office initially rejected the project for using satellite technology.

NOT MISSING

Madriaga also said that the copies of the contract that were signed in China were never missing, as earlier reported.

He said Formoso was told by San Miguel to just say that it was missing after concerned groups and businessmen attending a forum in Ateneo were asking for copies.

"When everybody was caving in, Leo San Miguel told Asec Formoso to just say na nawala ang kontrata," he said.

Sen. Alan Peter Cayetano tried to squeeze from Madriaga his motivation to testify.

Madriaga said one of his turning points was when Lozada was reported abducted after arriving at the airport last Feb. 5, 2008.

He said he was also forced to come out after Malaya columnist Ellen Tordesillas printed his supposed first-hand account, which was in the form of a letter, on the NBN-ZTE contract.

MADRIAGA FILES

He said the "Madriaga Files" were taken from the website of Upsilon Sigma Phi, a UP fraternity, of which Sen. Richard Gordon is a member.

Gordon grilled Madriaga after he failed to satisfy the senator’s query on why his letter landed in the Upsilon website. The letter detailed Madriaga’s knowledge of the anomalies that have attended the contract.

Madriaga further got himself in trouble after saying that the letter that saw print in Tordesillas’ column was different from the original letter. On the query of Gordon, Madriaga later withdrew his statement.

Madriaga also admitted feeding information to columnist Jarius Bondoc to prove that he was not asking for money. Bondoc confirmed this.

Madriaga nevertheless assured skeptical senators that he won’t recant his testimony. "One-hundred-one percent dito ako."

He nevertheless said he was afraid for his life

LACKS WALLOP

Senate majority leader Francis Pangilinan told Madriaga to sit down with the legal team of the Senate tri-committee to get his sworn affidavit.

Sen. Juan Ponce Enrile said the allegation of Madriaga that ZTE, a foreign company, gave money to bankroll the administration’s ticket last elections should also be looked into for possible violations against the participation of foreigners in elections.

Cayetano said so far Madriaga was able to corroborate some of the testimonies of Lozada.

He nevertheless said the Senate tri-committee is taking a cautious stance, because it took Madriaga some time before deciding to testify.

Sen. Francis Escudero said Madriaga’s testimony still lacks the wallop, similar to the impact created by the coming out of Lozada.

PURE ALLEGATIONS

Deputy presidential spokesman Anthony Golez dismissed Madriaga’s testimonies as pure allegations.

Golez noted Madriaga’s mention of the First Gentleman’s supposed meeting with Abalos, ZTE officials, and Joey de Venecia that supposedly occurred in December 2006.

"Madriaga said that the meeting with FG when he said "back off" took place last December 4 or 5, 2006. That was the time when FG was confined in the hospital. This destroys the credibility of Madriaga instantaneously," he said.

The First Gentleman had an angioplasty on Dec. 3, 2006. He was discharged Dec. 6.

"The new statement of another so-called witness is no different from the allegations of Mr. (Rodolfo) Lozada. These allegations by ‘installment’ unless proven through the processes dictated by our laws would only remain as allegations," he added. – With Jocelyn Montemayor