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AFP, PNP funds may have been diverted to NBN/ZTE

Palace scoffs at Lacson’s claim

By Dona Pazzibugan, Riza T. Olchondra
Philippine Daily Inquirer

Funds from a China loan facility
originally meant for a housing project for soldiers and policemen were allegedly diverted to the anomalous $329-million National Broadband Network (NBN) project of China’s ZTE Corp., according to key ZTE witness Rodolfo Noel Lozada Jr.

Lozada told a Senate hearing yesterday that part of a $1.1-billion loan facility which President Macapagal-Arroyo got from China during her trip last April 21, 2007 was meant for military housing and for the upgrade of the Angat Dam, the main source of Metro Manila’s potable water.

But the proceeds of the loan meant for these two projects were instead channeled to the $329-million NBN project.

“Alam ko natanggal ang housing (I know that the housing project was removed),” Lozada said under questioning by Sen. Panfilo Lacson.

Lozada said that it was discussed by former National Economic and Development Authority Director General Romulo Neri and President Arroyo. But he declined to reveal further details.

“It’s a matter of fact in the original list of projects there is a housing project but in the subsequent list involving the $1.1-billion package from China, the housing and Angat projects were missing,” he said.

Accommodating NBN project

He, however, clarified that he could not categorically say if the funds for housing went to the NBN project.

Lozada said what he knew was that the NBN was accommodated in the loan package from China. To accommodate the NBN, there was a need to remove other projects, he said.

Asked by Lacson whether the loan for the soldiers’ housing project was scrapped and channeled to the NBN project, Lozada replied that it probably happened. “Isa ho yata yon sa nasagasaan, (It’s probably one of those which were affected),” he said.

The President later scrapped the NBN project due to allegations of bribery and overpricing.

In his testimony at the Senate, Lozada also disclosed that in his many dealings with government, commissions in government transactions were a “norm.”

Overpriced by 22%

Lozada said government projects are usually overpriced by 20 percent to make room for bribes or commissions.

He cited as example the $1-billion South Rail project which he said was “overpriced” by 22 percent or around $70 million to accommodate the kickbacks. Lozada also served as a consultant to Neri for the project.

“Mukhang ganyan po ang norm sa gobyerno eh. Ang norm, opo, parang ganyan po ang gawi nila (It looks like that’s the norm in government. The norm, yes, that’s what they do),” Lozada told Sen. Francis Escudero.

He described the 22-percent kickback in South Rail as moderate in terms of the size of the project.

Lozada said he did not know for sure who got the commissions, but when pressed by Lacson, he identified a certain Mallari and Anthony Wang as those who vigorously followed up the South Rail project.

Asked if Mike Arroyo also had an interest in the South Rail project, Lozada replied: “Wang said sila na bahala sa nasa taas. Sila raw bahala sa Palasyo (Wang said they will take care of higher officials and the Palace).”

DOTC denial

The Department of Transportation and Communications (DOTC), however, denied Lozada’s claim that the South Rail project was overpriced by $70 million.

In a telephone interview, DOTC Undersecretary for Rail Guiling Manondiong said the budget was not even final yet and that the Philippine National Railways (PNR), which is implementing the project, was still conducting studies on how to adjust its plan given that it has much to rehabilitate along the so-called Bicol line.

“The project involves reconstruction of the rails, rehabilitating the facilities including the stations, and laying new tracks. The PNR is the one leading the project. It is all still under study and the priority right now is the $110-million Northrail-Southrail linkage from Caloocan to Calamba,” he said.

In 2004, Neda endorsed a proposal to rehabilitate the Bicol railway at a cost of nearly $1 billion.

The South Rail project is set to be implemented in two phases. Phase 1, which was estimated to cost $627.8 million, covers the rehabilitation and reconstruction of the existing 423-km railway line from Calamba to Legazpi City.

Phase 2, at a cost of $304.23 million, covers the construction of a new 135-km railway line from Camalig, Albay to Matnog, Sorsogon.

Also funded by China

Like the NBN project, the South Rail project will also be funded by a loan from China.

According to PNR, $885.435 million or 95 percent of the project cost is proposed to be funded by a loan from the Export-Import Bank of China.

In July 2007, the Neda and China’s Ministry of Commerce signed a memorandum of understanding to create a Philippine-China Economic Joint Working Group that would monitor the project.

Published inNBN/ZTE

43 Comments

  1. Brownberry Brownberry

    If it is true and we have no doubt it is, it will all the more anger the soldiers. We can just imagine how the detained soldiers feel at this moment. Ang tanong nila: Nasaan ang mga tao? Where are the people who believe in their cause? Taong bayan na lang ang hinihintay sa pagpapatalsik kay GMA. But until now, people are still not around. Bayan, gising na!
    Sumisikat na ang araw! Umaga na! Eto na ang Bagong Pag-asa na pinakahihintay nating lahat!

  2. Diego K. Guerrero Diego K. Guerrero

    Kailan mag-alsa ang AFP at PNP para mapatalsik si Gloria Arroyo. Matagal pa ang 2010. Si Gloria ang utak ng diversion ng public funds. Kawawang sundalo at pulis. Nawalaan ng pabahay.

  3. Yung nagpanggap na SPO4 Valeroso, sigurado ako, sundalo rin yun. Pero maaari rin siyang maging bayani at umamin na kinidnap nga nila si Lozada. Kung hindi siya kasali sa mga nagtatakip sa mga Garapal na Mag-asawang Abusado, hindi na lalala pa ang kundisyon ng mga kapwa niya kawal, mga asawa at anak nila.

    Kung hindi gahaman ang pinagsisilbihan nilang amo, sana may pabahay na rin sila at hindi nagtiya-tiyaga sa iskuwater sa tabing-riles sa Taguig na anumang oras ay bu-bulldozer-in ni Fernando.

    Kung matino ang pangulo, sana ay maayos ang edukasyon ng mga anak nilang mag-aahon sana sa kanila sa hirap.

    Kung may hustisya sana ay hindi sila matatakot na lumabas para sa katotohanan.

    Sana. Puro sana. Pero hindi pa huli. Kung yung Dumagat sa kwento ni Lozada, nagtiyagang magutom kaysa pakialaman ang bayabas na kinakain ng mga ibon, konting sakripisyo lang naman ang kailanagan para ituwid ang pagkakamaling ito. Upang hindi madamay pati yung pagkain ng ibon na pinagkakaperahan pa. Upang hindi madamay pati yung pampabahay nila at mga kasamahan nila para maibulsa.

    Tama na. Sobra na. Nakakasuka na. Tapusin na.

  4. cocoy cocoy

    Tongue;
    Palagay ko ay aamin na iyung mga dumukot kay Lozada dahil nakodakan na sila at nanood tiyak ang mga iyun sa TV.Sabi nga ni Balweg ay mag do-ri-me ang mga iyun kung ipatawag sila ng senado.Pauupuin sila ni Jinggoy sa kumukulong mantika.Ang mahirap d’yan baka sila ngayon ang nakidnap ng mga nag-utos sa kanila at pinatigas na ng semento sa drum.

  5. Valdemar Valdemar

    The military and the police for being diehard pawns of the administration would not care less if their housing is sacrificed by their Commander-in-Chief for herself and the chosen few. They are assured of a free plot at the libingan ng mga bayarin anyways.

  6. Pero despite these truths that Lozada revealed at saka nakakabagbag ng damdaming pahayag, tignan mo ang palusot ni Mike Bigtime Dorobo, wala raw siyang kasalanan at sinungaling daw si Lozada. Ang tigas talaga! This time, hopefully, hindi na siya makakalusot.

    Calling, calling kung sinuman, huwag papayagan makalalabas iyan ng bansa! Pakiusapan din ang US, kung sakali na ipa-A to A iyan para hindi maka-stay doon o kahit saan lalo na doon sa walang extradition treaty ang Pilipinas. Baka magtago na iyan.

  7. chi chi

    Ninakaw ni Gloria Asspweron ang budget para sa pabahay ng mga sundalo! Even hell will reject these thieves when they die! Walang hangga ang kaswapangan sa pera!

  8. noypisausa noypisausa

    The Arroyo government is now vulnerable. One of the pillars is gone – JDV. Now there are only two – PGMA and FVR. With the exit of JDV, the triumvirate is destroyed. Just watch out as they fight each other and this government will soon fall. As they say, it will die a natural death.
    Jun Lozada is no saint but he is still my hero, more courageous than Neri. No amount of “credibility questioning” from Miriam could dampen Jun’s resolve. Mabuhay ka, Ka Jun.

  9. happy gilmore happy gilmore

    this piece of the puzzle fits in with my theory – that this is a power struggle.

    the budget of the military is set at the start of the year – by congress and approved by the president.

    there is no way that funds can be transferred from one allocation to the next without generating a LOT of complications.

    this reckless statement that funds from the military AND pnp has been redirected is meant to arouse anger among the ranks.

    tst tsk tsk. poor caryetano and lacson – all their best laid plans did not even rouse a respectable crowd. pusta ko mas madami pa ang pupunta sa PINOY BIG BROTHER HOUSEMATES reunion kesa sa isulong ang adhikain ni Cayetano at Lacson.

  10. balweg balweg

    Kita nýo pati pala ang dapat na pondo para sa pabahay ng mga deserving nating kasundaluhan eh gustong dalihin ng pocketjackers?

    Ang saklap naman mga tropang Pinoy, nagpapakahirap sa bundok sa pagtugis sa mga rebelde at talbos lang kamote at sardinas ang tsibog, pati ba naman yong para sa kanilang pabahay eh ibubulsa ng pidalismo regime.

    O, ANO pa ang inyong inaantay at kailan kayo magsisikilos, kailangan kayo ng taong-Bayan!

  11. happy gilmore happy gilmore

    kgg balweg,

    until this ALLEGATION that funds has been transferred from the military and pnp’s budget to the ZTE has been proven in a court of law – it remains just that – an ALLEGATION.

    learned men do not act on allegations alone. let it be PROVEN in a court of law.

  12. happy gilmore happy gilmore

    also Kgg Balweg – correct me if im wrong –

    but i distinctly remember that funds for the ZTE deal was to come from a LOAN PACKAGE from China.

    so why the mention of mis allocation of funds if not to rouse anger amongst the ranks of the police and the military?

  13. buhawi buhawi

    happy gilmore:

    You said “there is no way that funds can be transferred from one allocation to the next without generating a LOT of complications”. Yes there is….only in the Philippines!!

    Without generating a LOT of complications? Ano pa ba sa tingin mo ang situtation natin, hindi pa ba kumplikado sa ‘yo?

  14. balweg balweg

    Folks, may dagdag uli sa pidalismo vocabulary ang kickbacksjacker!

  15. happy gilmore happy gilmore

    kgg na Buhawi

    are you with Parokya ni Edgar? if yes- im a big fan he he.

    re transfer of funds – think about it – arroyo wouldnt have stayed this long (2nd longest term since marcos) kung tanga siya. agree?

    having the funds transfered wouldve led to a number of complications that would eventually lead to her. agree?

    if so, logically – bakit gagawa ng isang bagay si arroyo maari siyang mahuli?

    admittedly – malinis gumawa ang admin ni arroyo – and as the saying goes – THE BURDEN OF PROOF LIES WITH THE ACCUSER.

    if the opposition says that the funds are being misused / reallocated – PROVE IT. di komo sinabi ni Lozada e gospel truth na. where is the proof? where is the paper trail?

  16. happy gilmore happy gilmore

    yan ang naging waterloo ni Erap.

    madumi siyang gumawa ng pera kaya he got caught with his hand in the proverbial cookie jar.

    itong si arroyo and tabako – malinis trumabaho.

    they laid a trap for erap in the form of the 2nd envelope and erap fell for it, hook – line – and sinker.

    methinks only Lacson has the cunning to lay this same kind of trap with Lozada as the bait – but arroyo was smarter. she kept Lozada alive long enough so that he spilled the so called beans.

    the people had their fill of intrigues – but no mobilization – no people power occured. in short – it fizzled out.

    ang galing ng strategies nila – para akong nanonood ng chess game between kasparov and fischer.

  17. happy gilmore happy gilmore

    aha ! may bagong hanapbuhay ang simbahan – BODYGUARDS

    imagine the advantages pag pari at madre ang bodyguards mo –

    safe ka sa media kasi ayaw namang baustusin ng media ang mga pari at madre

    safe ka din sa kasalanan kasi ipagdadasal ka nila – makokontra ang mga kasalanang ginawa mo

    banal ka

    pag may nag sniper man sa iyo at mamamatay ka na – mabebendisyunan ka agad kasi nakapaligid sila sa iyo….

    he he he he

  18. buhawi buhawi

    happy,

    Agree na agree ako sa yo!! Agree tayo na si arroyo ang pinakamalaking magnanakaw sa buong kasaysayan natin!!

  19. happy gilmore happy gilmore

    kgg Buhawi –

    malaking magnanakaw – maybe – until proven in a court of law.

    all we have at this point is kuro kuro

    but if we strengthen our institutions – specially the judiciary – then we have no fear that those that did steal from govt will get their day in court and stand trial.

    but pinakamalaking magnanakaw? sad to say – history has designated that to Marcos, Imeldific and his ilk.

  20. Diego K. Guerrero Diego K. Guerrero

    Re: but pinakamalaking magnanakaw? sad to say – history has designated that to Marcos, Imeldific and his ilk.

    Not anymore. Gloria is now designated pinakamalaking magnanakaw in Philippine history.

    Gloria Macapagal Arroyo is considered the most corrupt Philippine leader in history, more than Ferdinand Marcos and Joseph Estrada, who were ousted from office, according to Pulse Asia. The Pulse Asia poll was conducted in October, when Arroyo’s government was plagued by allegations of kickbacks in a broadband network deal with China’s ZTE Corp.

  21. buhawi buhawi

    happy,

    Ikaw na rin nagsabi, “until proven in court”. Napatunayan na ba sina Marcos at Imeldific mo? More than twenty years na!

  22. broadbandido broadbandido

    Saang court of law, sa Ombudsman na bata ni Piggy ang naka-upo? In your dreams. Sa court of public opinion ay guilty beyond reasonable doubt ang mag-asawang ganid sa pera.

  23. One thing I know ay hindi naman malaki ang properties ng mga Marcos sa probinsiya namin. Iyong sinasabing ninakaw naman nila nabawi na at nawaladas na ni Gloria Dorobo. At least, matutupad na ang pangarap ni Marcos na “history will be kinder to him.” Si Gloria Dorobo na ngayon ang “the worst president of the Philippines.”

    Mas grabe iyan dahil hindi lang nakaw ang ginagawa, kundi inaangkin na ang buong Pilipinas. At least, noong panahon wala tayong narinig na kamag-anak ni Marcos na nagsampa ng kaso sa korte na kaniya ang Pilipinas gaya noong kamag-anak ni Bigtime Dorobo na kanila daw ang buong Pilipinas dahil inutang sa kanila iyong ibinayad ng Tate sa America. Kahibangan na talaga. Never heard of iyong claim pa nga na iyong Son Tua ang pinagkatiwalaan sa Galleon Trade. Holy macaroni ang kahibangan ng mga ungas na ito!

  24. ..nawaldas…

  25. Diego K. Guerrero Diego K. Guerrero

    Dito winaldas ni Joc-Joc Bolante ang recovered Marcos Swiss funds diverted sa 728-million fertilizer fund scam. Bumaha ng diluted liquid fertilizer sa provinsya at Makati City. Sadyang natutulog ang kaso sa Ombudsman.

  26. SULBATZ SULBATZ

    gilmore,

    hwag mo kami gawing tanga tungkol sa budget na sinasabi mo. tyalagang walang housing sa budget ng AFP except for repair and maintenance kasi nga walang budget for capital outlays. Yung para sa housing ng mga sundalo at pulis ay itinalaga as a separate budget. Yan ang ninakaw ni gloria esperon. Kaya pala yung pangakong housing ni gloria esperon eh biglang naglaho ay yun pala ay napunta sa bulsa ng mga hinayupak na mga ganid. Si esperon lang ang nakapag-pagawa ng magandang bahay. kaming mga kasundaluhan at kapulisan eh squatters pa rin at barong-barong lamang.

    sige gilmore, dilaan mo pa ang pwet ni gloria esperon.

  27. SULBATZ SULBATZ

    kaya pala nagpa-extend si esperon eh kulang pa pala ang padugo nya sa kaban ng AFP at bayan. Ganid talaga yang si gloria esperon. Mahal daw nila ang kasundaluhan at kapulisan. Putragis, may mahal bang ninanakawan?

  28. SULBATZ SULBATZ

    naglalabasan na ngayon ang mga baho ng amo ni gilmore na si gloria esperon. kulang pa yan……hehehehehe

  29. Brownberry Brownberry

    happy gilmore Says:

    February 9th, 2008 at 1:55 pm

    yan ang naging waterloo ni Erap.

    madumi siyang gumawa ng pera kaya he got caught with his hand in the proverbial cookie jar.

    itong si arroyo and tabako – malinis trumabaho.

    they laid a trap for erap in the form of the 2nd envelope and erap fell for it, hook – line – and sinker.

    —–I don’t like you; but I agree with this one you posted.
    Malinis gumawa at magtrabaho si GMA. She perfected the Pidal Mafia. She used her spouse to do all the shit then pretends she doesn’t know anything. GMA has learned the mistakes of Marcos and Erap. She didn’t do what the two others did, and did what the others did not do. Binusog niya ang simbahan at militar. Ibinenta niya ang kaluluwa niya at buong bansa sa mga banyaga, hindi lang Amerika, Tsina at iba pa. She has perfected all the crimes; so I have great reservation if this new Lozada expose would bring her down. Siguro ang pag-asa na lang natin kung tapos na ang termino niya at iba na ang Pangulo. But what if the next President is her anointed one?

  30. Diego K. Guerrero Diego K. Guerrero

    “We are also making a headway in our housing program. It’s a little bit slowed down by the requirements of accounting and transparency, but I’m sure that the P1 billion housing fund that was given by the President at the beginning of the year will soon be realized in terms of on-based housing,” Esperon.
    2007/10/14

    Saan napunta ang P1 billion housing fund?

  31. KapitanKidlat KapitanKidlat

    Ania ginastos da kano ti kuarta for the pabahay of the pulis and sundalo? Ay Ines Kannuyang kung buhay lang si Lam-ang baka tinadtad na itong mga dorobong ito…Nakakainis talaga,nagpuskol ket ti panagrup-rupa dan (ang kakapal ng pagmumukha nila)!

  32. Zardux Zardux

    Sulbatz,

    Kabisado mo pala ang budget ng afp? Nagtanong ako sa mga myembro ng Comptroller syndicate sa AFP ang sabi nila wala ngang nakalaan na budget para sa Capital Outlay for the AFP. Pero tumataas daw yung MOOE at PS.

    Mas naniniwala ako sa mga taga-RMO (J6 dati) kesa taga PIO ni Bakero lalo na kung budget ang pag uusapan.

    Teka, meron pa bang naniniwala sa mga sinungaling sa AFP PIO?

    Yan ang masaklap ke gloria asperon, ang ninanakawan ay ang mga sundalo at ang taga depensa ay ang PIO. Parang Mafia, hane?

  33. Zardux Zardux

    ”…..The burden of proof lies with the accuser” – gilmor

    Agree! Pero ikulong muna natin sa Tanay si gloria at esperon bago mag imbestiga gaya ng ginawa nila ke gen miranda et al.

  34. Happy,
    Hindi mahirap makita na niyari na talaga yung pondo ng mga sundalo’t pulis. Ang loan amount ay nanggagaling sa suma total ng mga gastusing popondohan sana ng utang. Puwes, sa simula’t simula, malinaw na isa doon sa line items ang AFP/PNP housing budget na kasama sa listahang ibinibigay sa House at Senate Appropriations Committee sa pag-review ng detalye jung paano ginamit yung nakaraang budget sa panahong humihingi na naman ng budget para sa susunod na taon. Regular na ginagawa iyan.

    Yung detalye ng mga uutangin pa lang, at yung bahagi ng lahat utang na binayaran na ay alam ng lahat ng Senador at Congressmen iyan.

    Kung sa mga nakalista noong 2006 ang pondong uutangin na KASAMA yung para sa housing, pero WALA na sa listahan ng 2007 budget, at natira ang ibang item gaya ng ZTE/NBN at CyberEd na maraming kurakot, malinaw ang ibig sabihin niyan:

    ISANTABI MUNA ANG PAGPAPABAHAY SA MGA PULIS AT SUNDALO DAHIL MAS IMPORTANTE ANG BROADBAND.

    Tagalog na iyan. Kung naintindihan mo yung Kangkungkehrnitz at Stunstugudunstuy mas maiintindihan mo yung sinabi ko.

  35. magsasaka magsasaka

    kawawa namang mga pulis at sundalo natin…
    taga bantay na ng sindikatong gobyerno

    dinugasan pa ng sindikatong pino-protektahan nila.

    May Bukas pa mga mahal naming pulis at sundalo

    protector of the people.

  36. Magsasaka: kawawa namang mga pulis at sundalo natin…
    taga bantay na ng sindikatong gobyerno

    *****
    OK ito a. Tamang-tamang description ng rehimen ni Gloria Dorobo, iyong godmother ng Philippine Mafia! 😛 Puedeng gawang ng pelikula, bida iyong anak na artistang nangungulangot na mukhang baboy, combination ng ama’t ina.

    Sabi ng kaibigan ko, wala daw makagusto kaya ipinaasawa sa pinsan. Pero sabi ko personal na nila iyon. Problema lang kung may lumitaw na sira ang ulo sa mga apo ng mga dorobo dahil sa epekto ng ganitong pag-aasawahan na may kinalaman sa heredity. Imagine iyong pinagsamang dugong aso at dugong baboy! 😛

  37. happy gilmore happy gilmore

    it is interesting that the Filipinos are so focused on free housing, free education, free health care, free free free free.

    i havent heard yet for the Filipinos to claim the responsibilities that comes with these freebies.

    it is also interesting that whole populations are led to believe that their fate, their futures are in the hands of the government.

    it reminds me of the movie “V for Vendetta”
    where the politicians there said

    “we have to remind them why they need us”

    we do not need government’s help to become rich

    we do not need government’s help in order to progress

    by our own hands we can progress

  38. atty36252 atty36252

    Free for Pidal.

    Binabayaran ng taxes namin ang hinuthot niya.

    Yung housing ng sundalo, bayad ng taxes. Yung medicina, bayad din ng taxes.

    Pati payroll mo bayad namin. I’m sure government employee ka.

  39. happy gilmore happy gilmore

    kgg atty 36252,

    im sorry to disappoint you, i am not a government employee.

    are you a real lawyer?

    if so, i would like to ask for your wisdom…

    you above all should know the meaning of “evidence”. do you think what the opposition has against the admin will stand in court?

  40. atty36252 atty36252

    you above all should know the meaning of “evidence”. do you think what the opposition has against the admin will stand in court?
    *****************

    Lozada’s statements will stand in court. That is why they were “persuading” him to say otherwise.

    On second thought, you may not be a government employee. I have read writings with the same tone and illogic as yours.

  41. happy gilmore happy gilmore

    kgg atty36252

    you havent answered my question – are you a real lawyer?

    what is your basis for your statement that Lozada’s statements will stand in court…

  42. atty36252 atty36252

    Kunyari ka pa. You saw my post in the other thread.

    Read my article at Ping Lacon’s website, about Lozada’s statements and the hearsay rule.

  43. atty36252 atty36252

    Am I a real lawyer? What did the Superstar (Jesus Christ) say? By their fruits ye shall now them.

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