‘I know nothing about $41M bribes’

New NBN witness called a liar

By: Dennis Gadil

New witness Leo San Miguel yesterday said he had no direct knowledge about the alleged $41 million in advances made by China’s ZTE Corp. to the "Greedy Group" of Benjamin Abalos Sr. in exchange for the approval of the national broadband project.

"I’m not aware of any kickbacks or ‘lagayan’," San Miguel told the Senate tri-committee of blue ribbon, defense and trade, which is investigating the overpriced project.

Previous witnesses Jose "Joey" de Venecia III, Rodolfo Lozada Jr. and Dante Madriaga, who were present at the hearing, said San Miguel was lying.

Sen. Panfilo Lacson, who had talked with San Miguel a number of times before the latter’s appearance at the Senate, also said San Miguel was lying, an assessment echoed by a number of senators.

San Miguel, an engineer, said his involvement in the NBN-ZTE contract was purely technical and his knowledge about the contract did not go beyond "technical matters."

San Miguel said he is the technical consultant of ZTE, not Madriaga.

Madriaga earlier testified that the "Greedy Group" of Abalos, received from ZTE advances amounting to $41 million, half of which allegedly went to President Arroyo and her husband Mike.

He said he learned all this from San Miguel, who was his superior and the one who recommended him to ZTE as technical consultant.

Madriaga said the other members of the Greedy Group are San Miguel, Ruben Reyes and retired Gen. Quirino de la Torre.

But San Miguel said Madriaga was only tapped to provide technical inputs on the NBN framework that was submitted by losing US-based bidder Arescom, where Madriaga was the consultant.

"It’s not true. He’s not the consultant (because) I’m the one paying him. I cannot accept that," San Miguel said.

He also denied signing a document supposedly showing the engagement by ZTE of his and Madriaga’s services.

San Miguel showed his signature on his credit card to the Senate tri-panel to prove that the signature in the document was not his.

He also denied authoring an electronic mail that he sent to Madriaga in July 2006 which described the "tongpats" ("patong") or overprice in the NBN-ZTE deal.

San Miguel said commissions were a "standard" arrangement and that he heard the advances being discussed "among themselves."

Pressed by senators who he was referring to, San Miguel retracted his statement, saying that he never heard this being discussed by Abalos, Reyes and De la Torre.

San Miguel, however, said it was possible that "commissions" awaited those involved in the NBN project.

"You know, no person would work for something without getting compensation. And there are people who have roles to play," he said.

He said Reyes’ role was to help facilitate and expedite the project on the government side.

"It appears like he’s the local guy," he said.

He said Reyes told him that money could be made out of the deal.

"Pare may konting kita rito," San Miguel said, quoting Reyes.

San Miguel admitted seeing then Planning Secretary Romulo Neri to present the ZTE proposal. He said Neri initially expressed reservations on the ZTE proposal.

He said he did not meet Mike Arroyo.

San Miguel said he stood to get a "success fee" of 1.5 percent or $1.6 million of the $329 million NBN deal won by ZTE.

He said on top of it, he would be refunded by the ZTE of the expenses that he incurred in the course of packaging the project.

San Miguel said so far the ZTE has refunded him P4 million.

He said he is not aware of the extent of Abalos’ involvement in the project but stressed that "he’s helping."

He said he had five to six meetings with Abalos, which at the Wack Wack Golf and Country Club in Mandaluyong. One meeting took place in the Makati residence of former Speaker Jose de Venecia.

"I don’t know the relationship of Ruben Reyes and Abalos," he said.

He refused to say if Abalos was indeed brokering for ZTE but noted that Abalos was frequently talking to ZTE officials.

San Miguel said the perception was that it was ZTE which approached Abalos for help.

San Miguel denied being present in Wack Wack sometime December 2006 when Mike Arroyo had a verbal tussle with the younger De Venecia III, where the former told the latter to "back off" from the deal.

But De Venecia said San Miguel was in the same room with Abalos, Jaime Paz, de la Torre and Transport Secretary Leandro Mendoza when he met the First Gentleman.

OBVIOUSLY LYING

Lacson said he was surprised by the denials made by San Miguel.

Lacson stressed before the Senate hearing that he never described San Miguel as his "surprise witness."

"I never said he’s the surprise witness. There’s a subpoena," he said. "I’m more surprised than disappointed." he later told reporters.

"At the outset, pwede kong sabihing hindi totoo ang sinabi niya. . .Tthat much I can say, hindi totoo ang sinasabi niya. Ibang tine-testify niya."

Lacson said during his meetings with San Miguel, the new witness talked about "kickbacks" and "irregularities" in the NBN-ZTE deal, which were even backed with "materials" that were handed to him.

He did not elaborate what the materials were.

Lacson said something might have happened between 11 p.m. Monday to morning of Tuesday, which prompted San Miguel to change his mind.

He said he met with San Miguel on the eve of the resumption of the Senate hearings. Before that he met San Miguel three times.

He said a common friend called up San Miguel in the morning of Tuesday and said over the phone that he was under "intense pressure."

Lacson said the "pressure" could only come from Malacañang or Abalos.

BUM STEER

Lacson took exception to remarks of Sen. Juan Ponce Enrile before Senate media that he was given a bum steer.

"No, I don’t feel I’ve been had, he’s a real witness," he said.

In the hearing, Lacson declined to refute the testimony of San Miguel.

"For purposes of this committee hearing, I will neither confirm nor deny (what he has said). I want to preserve the goodwill or what ever is left between Mr. Leo San Miguel and myself," he said.

Lacson nonetheless willing to divulge his discussions with San Miguel in a closed-door meeting with his fellow senators.

San Miguel told the Senate joint committee that his first meeting with Lacson was by accident in a hotel in Mandaluyong where they were both attending separate meetings.

San Miguel said he knew Lacson way back when he was still PNP chief and when De la Torre was comptroller.

"O kumusta ka na? Halika mag-usap muna tayo," San Miguel recalled Lacson saying.

San Miguel said they ended the conversation with Lacson asking him to produce De la Torre and "see how he’s doing."

He said he brought with him De la Torre to their second meeting evening of March 3, where Lacson and De la Torre talked about the latter’s health and going to the Senate to testify.

"We told him (Lacson), we don’t have invitations, why should we go (to the Senate)? Essentially that ended the meeting," he said.

San Miguel said the third meeting took place March 9, a Sunday but without De la Torre in attendance because "he was not feeling too well."

He said the fourth time was evening of Monday.

The new Senate witness said he did not talk about irregularities in the NBN-ZTE deal.

SURPRISED SENATOR

Senate majority leader Francis Pangilinan said it strains credibility that San Miguel did not divulge information on the NBN-ZTE deal during his four meetings with Lacson.

"I’m a surprised senator," Pangilinan said during a break in the hearing.

"I’m the one surprised here," Escudero said.

Sen. Manuel Roxas II, trade committee chair, said San Miguel appeared not to be telling the truth.

"Hindi kapani-paniwala ang sinasabi niya," he said.

Blue Ribbon chair Sen. Alan Peter Cayetano, said the hearing nevertheless proved that San Miguel was indeed a consultant of ZTE and his testimony was relevant to the probe.

Lozada said that in meetings where San Miguel was present, "lahat napag-usapan, except for technical" to belie San Miguel’s assertion that he was purely a technical person.

De Venecia said he was disappointed but said San Miguel is "a member of Gang of 4."

LIE DETECTOR

Before the hearing closed late evening, San Miguel accepted the challenge of the other witnesses in the NBN-ZTE probe to undergo a lie detector test.

"On the challenge of lie detector test, absolutely, anytime," San Miguel told the Senate tri-panel on the query of Sen. Mar Roxas.

Roxas said San Miguel controverted all the testimonies given by the three other witnesses led by Lozada.

He said a lie detector test would put to rest who among the witnesses were feeding "lies" to the Senate joint panel.

Roxas also said he would tap an international lie detector company to undertake the test.

Lozada and Madriaga said they are willing to take the lie detector test.

De Venecia kept mum on the challenge.

Lozada said he found it incredible that San Miguel could describe his relationship with Abalos as "only casual."

"Sabi niya 2 to 3 meetings sila ni Abalos at hi, hello at goodbye lang. Pero ng tanungin siya ni Sen. Enrile ay 5-6 times (sila nag-meet ni Abalos)," he said.

Lozada said "commissions," "kickbacks," "bukol" were discussed during his meetings with San Miguel and.

"Ang pinag-uusapan po doon, komisyon. Andun po si Mr. San Miguel," he said.

He said San Miguel was always "within hearing distance" during those meetings.

Cayetano said San Miguel was being selective in remembering his dealings with Abalos.

"Nung isa pong senador ang nagtatanong, halos hindi nyo alam kung ano involvement ni Mr. Abalos, pero nung si Sen. Enrile, ay malinaw niyong naalala ang ginawa ni Commissioner Abalos," Cayetano said.

PHONE RECORDS

Sen. Jamby Madrigal also proposed that San Miguel authorize the release of his phone records by mobile companies just like what Lozada has agreed to.

Cayetano said also asked San Miguel to agree to the release of his phone records from 11 p.m. of Monday to morning of Tuesday.

Lacson said that someone reached San Miguel between this period, which prompted him to change his mind.

Lacson opposed the proposal, stressing that it would be useless since SIM cards could be easily replaced or tampered.

San Miguel said he was willing to authorize the release of his phone records but on a limited basis only.

Executive Secretary Eduardo Ermita and Press Secretary Ignacio Bunye dismissed the Senate appearance of San Miguel which they said did not actually come as a surprise.

Deputy presidential spokesman Anthony Golez lamented the Senate’s "allegation by installment," cautioning them against being "burned" if they continue to present witnesses without requiring them to back up their claims with evidence. – Jocelyn Montemayor