The ZTE Alphabet

The National Broadband Network project scandal rocked our shores shortly after President Gloria Macapagal-Arroyo unveiled an ambitious State of the Nation Address (SONA) last July. The SONA outlined priority projects in infrastructure in the form of roads, airports and Information and Communication Technology (ICT) the now defunct CyberEducation Project and the NBN project. What was originally a project envisioned to improve communications between government institutions and local communities through broadband technologies has instead stirred up discord and unearthed corruption in the government.

The NBN project was awarded to mainland Chinese Zhong Xing Telecommunication Equipment Corp. (ZTE) in April last year via a contract signing attended by Transportation and Communications Secretary Leandro Mendoza. Estimated expense in the proposal amounted to $329 million. The project was later revoked by the Supreme Court following controversy raised when businessman Joey De Venecia III surfaced and alleged that former Commission on Elections (COMELEC) Chair Benjamin Abalos had brokered the deal and pocketed money. De Venecia is the son of former House Speaker Joey De Venecia and a shareholder of Amsterdam Holdings Incorporated (AHI) a local company who also went for the NBN project bid.

Former National Economic and Development Authority (NEDA) Director Romulo Neri also testified that Abalos attempted to bribe him during the Senate investigation last September. While playing at Wack-Wack Golf Club Abalos allegedly told Neri ‘may 200 ka dito’ when they were talking about the ZTE-NBN deal. Abolos denied the allegation.

In a Newsbreak report following the eruption of the scandal, various international organizations concluded that the scandal would not be the last to erupt. Outgoing World Bank Country Director Joachim von Amsberg was quoted as saying that “public decisions [in the Philippines] are distorted by special interests.” The Asian Development Bank and Australia similarly gave the country a poor rating due to “weak institutions ” - both government and public. Factors which remain perennial, they said, are corruption, enforcement and security.

IBON Foundation claims that corruption during the Arroyo Administration has cost the country P7.3 billion pesos. Funds, they say which could have been us to provide badly-needed education and health services to millions of Poor Filipinos. These costs are attributed to six scandals that occured during Arroyo's run as president since 2001. The list includes the fertilizer fund scam, Jose Pidal bank accounts, Northrail project, IMPSA power plant project, the poll automation project.

Money that went to pay for these projects could have augmented Department of Education (DepEd) budget which DepEd figures for 2008 indicate fall short by P8.43 billion to bridge its resource gaps of bridge its resource gaps of classrooms, textbooks and teachers.

The funds could have also went to increase subsidies for indigent patients in Philippine General Hospital (PGH), other government hospitals, said IBON. It could have augmented the decreasing budget of State Colleges and Universities (SUC'S), which would have prevented the need to downgrade facilities and defer tuition fee increases.

A similar study done by IBON called for the junking of the Cyber Education Project (CEP), which the NBN-ZTE project was initially lumped together with during the start of the Senate investigations.

"The cost of the Cyber Education Project (CEP) would be better spent on upgrading the country's dismal public education system. Eighty-six percent of the CEP will be financed through a P22.77 billion loan from China, while the government would finance the remainder, P3.71 billion. But given the dismal state of the country's basic education system, the CEP is unnecessary and would only exacerbate the country's already dire debt situation," IBON said.

The lack of budget bodes ill for students in State Universities and Colleges(SUC's) as well as tertiary and secondary public schools. Tuition, even for so-called SUC's underwenttuition increase at the start of classes last June as more of the SUC's are oriented towards private funding with government allocation decreasing every year.

A new whistleblower

Increasing calls for the president’s ouster prompted by the testimony of Rodolfo "Jun" Lozada, following his alleged abduction February 5, have brought together once divided sectors. Among them the church, studentry. The persistent clamor is now harder to ignore

Lozada, now a celebrity among the youth and much of the country, continues urging Filipinos to take action. Taking rounds among the different churches, functions, school and rallies he echoes the call for one thing - that this is our fight and we should take action.

"Are you ready to take action now?" Lozada said to a crowd of 500 students at the University of the Philippines Malcolm Hall(College of Law) February 23. Most of the crowd were members of Advocacy for Sustained Accountability and Reform (Asar) movement. Member schools include UP, Ateneo de Manila, University of Santo Tomas and the University of the East.

The University of the Philippines University Student Council (USC) released a statement February 27, once again calling for the ouster of the President. GMA, they said, has "entrapped herself in a web of lies" when public presseure forced her to admitt foreknowledge of the alleged 'kickbacks' in the NBN-ZTE deal. Her actions are “a direct assault on nearly all the values we hold sacred in the academe.” The council remained firm that the President's silence on the issue violates the "core principle" that "public office is public trust."

"In UP’s Centennial year, the faculty continues to uphold its tradition of being one with our people. We commit ourselves to the struggle to build a progressive society and a responsible and accountable government which subscribes to the principle that sovereignty resides in the people and all governmental authority emanates from them," they said.

UP and other ASAR members joined the interfaith rally participated in by religious leaders and professional groups February 29 in another collective call for "truth, honesty and accountability" as well as a call for Arroyo's ouster. Former Presidents' Corazon Aquino and Joseph Ejercito Estrada were also present at the interfaith rally, dwarfed by the crowd. The rally carried the theme "Manindigan para sa Katotohanan, Katarungan at Pagbabago." Police estimates the crowd to have surged to 15,000 at it's peak while the organizers claim there were as many as 80,000 people, the Philippine Daily Inquirer reports. See video below.