‘Moderate Their Greed’

MANILA, Philippines -- From being a technical consultant to the National Broadband Network (NBN) project, Rodolfo Noel “Jun” Lozada Jr. found himself assigned to “moderate" the "greed” of the greedy.

Lozada was taken into police custody on Tuesday night at the Ninoy Aquino International Airport (NAIA) after returning from Hong Kong, in what police officials said was a move to protect him.

Surrounded by a group of nuns, he resurfaced at La Salle Green Hills in Mandaluyong City shortly before midnight Wednesday, apparently tired, weary and anxious.

At a press conference that began at 2:30 a.m. Thursday, Lozada said former Commission on Elections Chair Benjamin Abalos Sr. got a $130-million commission from the NBN contract and coordinated with President Gloria Macapagal-Arroyo’s husband, Jose Miguel “Mike” Arroyo, on the broadband project.

“I guess the trouble started when Chairman Abalos wanted to protect his $130 million ... How shall I put this? Commission on the project,” Lozada narrated, taking a brief pause before saying the word “commission”...

Lozada has emerged as a key witness in the scandal that exploded last year when the President’s husband was implicated in the inquiry.

Opposition senators believe Lozada may be the missing link in their effort to prove the President and her husband were involved in approving the deal, which was eventually scrapped.

At one point when it was clear that Abalos was not going to clinch the NBN project for ZTE by himself, Lozada said the former Comelec chair threatened to have him killed...

Lozada, who resigned Thursday as president and CEO of state-owned Philippine Forest Corp., said he was introduced by then NEDA Director General Romulo Neri to Abalos at a lunch meeting at Wack Wack subdivision in Mandaluyong City in late September or early October 2006.

“We had lunch at Wack Wack wherein we talked about the NBN-ZTE project and the good secretary (Neri) asked me to help him to understand what this whole project was all about,” Lozada said. He also recalled that Neri had told Abalos “to course his project proposal through the proper channels.”

Having been tapped by Neri to be a consultant to the NBN project, Lozada said the NEDA in October 2006 received the first copy of the first version of the Commission on Information and Communication Technology’s feasibility study prepared by ZTE.

In November 2006, Neri introduced Lozada to the younger De Venecia who presented his company’s project proposal for the NBN.

“(Neri) asked me if it was appropriate and I said ‘Yes.’ So he encouraged Joey to pursue the project development further,” Lozada said.

Lozada recalled that he answered in the affirmative when Neri asked him “if there was synergy between the two projects... but both of them were pitching for the same project.”

Neri ordered him “to reconcile the two proponents,” Lozada said, describing the NBN project at that point as “a really good project.”

Lozada said he proposed a structure in which both De Venecia and Abalos “can achieve their objectives.”

In the Lozada proposal, De Venecia becomes the lead contracting party because his was a build-operate-transfer (BOT) scheme while Abalos, who had proposed a loan agreement for the NBN project with ZTE, would become the supplier to De Venecia’s project. “I thought at that point that it was already a win-win situation for everyone involved,” Lozada said.

Instead, it was going to be the beginning of Lozada’s travails.

Abalos apparently did not agree because his alleged multimillion-dollar commission had to be protected. Being a consultant to the project, Lozada said he told Abalos that the amount “might be a little too big.” “In the vernacular, sabi ko, bubukol po ito. Sabi ko, siguro kalahati pupuwede (I said, it would swell [too costly]. Maybe half would be possible)” Lozada recounted telling Abalos.

When he relayed the information to De Venecia, Lozada recalled the latter went “really ballistic like he was worried.”

Describing De Venecia’s reaction, Lozada said it apparently meant: “Where will he get this $130 million because the project cost is $262 million and Abalos wanted $130 million in commission?”

Around December 2006, Lozada recalled that ZTE representatives Yu Yong and Fan Yang, “who had become close to me during the progress of the work, were already getting frantic and talking to me about developments in the project because it (ZTE) had already given enough advances to Chairman Abalos.” But Lozada said he assured the ZTE representatives “that the project (was) moving along so they should not be alarmed.”

Because of De Venecia’s “hesitance” in agreeing to Abalos’ multimillion-dollar commission, the then Comelec chair began to consider the “project on his own” and deal with it directly, according to Lozada. But Lozada said he reminded Abalos that he could not do this because according to Neri, Ms Arroyo had instructed that the NBN project be done as a BOT and not through a loan agreement.

It was at this point that Abalos told him that he (Abalos) was going to call up the President’s husband, according to Lozada.

“Chairman Abalos said ‘Come, we’ll call FG’... He called him up. He said, ‘Pare, someone from NEDA, who is beside me, claims that my project could not be undertaken using a loan,’” Lozada said.

Lozada said that while he could not hear the voice on the other end of the line, he heard Abalos tell that person “... Ang hirap nyo palang kausap. Kalimutan nyo na lahat ng usapan natin (It’s difficult to talk to you. Let’s forget everything we had talked about).”

Lozada said he did not know what that statement meant but the next day, he found out that in December 2006, the Chinese ambassador had sent a letter saying there was already “money available for the NBN project.” Lozada said he told Neri about the letter. Neri’s instruction, Lozada said, “was very clear.”

“He said, ‘Jun, you moderate their greed.’ I was naive to accept that offer. I do not know what moderating greed means but I followed Secretary Neri,” Lozada said.

The same month, Lozada said, Abalos invited him to a dinner at the Makati Shangri-La hotel and told him that Mike Arroyo would also be present. Lozada said Arroyo did not say much during dinner. Abalos nevertheless told him: “Pare, we’re OK with Joey... We’re OK with NEDA.” The President’s husband simply replied “OK,” Lozada said.

It would be Lozada’s last meeting with Abalos.

Lozada said that on Jan. 18, 2007, he received an angry call from Abalos. Lozada said Abalos asked him if Neri knew about his (Lozada’s) actions and that he (Abalos) was close to the military and the intelligence community.

To all the questions, Lozada said he answered: “Opo (Yes, sir).” “Then he started cursing. He kept on cursing in Tagalog,” Lozada said.

Abalos supposedly also warned him that he had a CD of all his (Lozada’s) phone conversation with Joey de Venecia and yelled, “Mga hayop kayo, tinatraydor nyo ako (You’re animals, you’re double-crossing me).”

“Chairman Abalos ended his tirade with the words ‘Huwag kang magpapakita sa akin, hayop ka, sa Wack Wack o sa Mandaluyong at ipapapatay kita! (Don’t let me see you, you animal, at Wack Wack or in Mandaluyong. I will have you killed),’” Lozada said.

Lozada said he quit the NBN project that same day and told Neri it was not something worth risking his life for.

(From :  www.inquirer.net 08 February 2008 Copyright INQUIRER.net. All rights reserved.)