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Joey de Venecia’s statement

Posted by: Alecks P. Pabico | September 18, 2007 at 4:12 pm
Filed under: Congress Watch, Governance, In the News

BELOW is the full text of the statement read under oath by Jose de Venecia III at the Senate Blue Ribbon Committee hearing this morning on the controversial National Broadband Network (NBN) contract:

Recent events, interviews, and news reports have revealed that the DOTC-ZTE broadband deal is illegal, grossly disadvantageous to the government, and unjustly burdensome to the Filipino people because of the ridiculous overpricing of this project and the huge kickbacks anticipated by those who brokered this anomalous deal. The public is now aware not only of the tip of this abominable iceberg but also of the massive mountain of graft and corruption that dwells underneath.

Being one of the beneficial owners of Amsterdam Holdings, Inc., I was unwittingly exposed to the stink of what is now the DOTC-ZTE broadband deal. In December 2006, AHI filed its unsolicited proposal for the NBN project and was keen on its becoming the original proponent of the project under the BOT Law. Little did I know that certain vested interests were already at work to rig the award of the project to ZTE.

Because of my company, AHI, was being considered by the DOTC and the NEDA as the original proponent, I was approached by an unlikely but senior powerful person who offered a technical cooperating partnership with ZTE to push the deal through. I was initially wooed and eventually persuaded, badgered, and partnership. It was there that I found out that the ZTE proposal was, as early as then, overpriced by 100 percent or $130 million to accommodate the advances and kickbacks to be received by this powerful person. This powerful person even had the temerity to demand on the spot payment and the gall to mention the name of my President GMA and my father, the Speaker, as being the recipients of the kickbacks.

I was shocked, offended, and aghast. I immediately pulled to the side this senior powerful person and head of a Constitutional Commission no less to warn him against the gratuitous namedropping of persons I knew for a fact had no actual knowledge and involvement in the NBN project. I was sure that my President GMA and my father, the Speaker, was (sic) unaware of the intricate technology details of the NBN project and could not stomach the fact that my President and my Speaker would be dragged into a transaction that required undisclosed advances and under-the-table kickbacks to sweeten the deal.

Having discovered the kickbacks, I had overwhelming reservations against ZTE piggy-backing on our proposal. First, our proposal offered to execute the project without any government loan or sovereign guarantee that would only translate to more debt for the country. On the other hand, ZTE’s proposal required a huge government-to-government loan that masked the onerous kickbacks changing hands under the table. Second, I could see no point in saddling the Filipino people with more debt when my company had offered a technically superior project at no corresponding cost to the government. Third, neither I nor my foreign partners would accede to a sweetheart proposal that was riddled with graft, corruption, and the massive plunder of the taxpayer’s money.

Sickened with what the ZTE proposal embodied, I informed my partners through telephone about my objections against and refusal to partner up with ZTE. Shortly after these conversations, I received a furious and enraged call from the senior powerful person, who was fuming mad over the conversations I thought I had in private.

When I asked this powerful person how he got his information, he shouted that he had my cellphone bugged and threatened to give me and my father a transcript of my conversations with my partners. I calmly requested that I be given such a transcript because I know that wiretapping is illegal and I would happily stand by my convictions against the ZTE proposal before my father. I never did receive the transcripts.

I was however offered several opportunities to reconcile with this senior powerful person by Sec. Leandro Mendoza. Although I had no intention to pursue the partnership and was intent to push for AHI’s proposal on the basis of its merits, I would not decline the opportunity to patch things up with the powerful person. In one such reconciliatory meeting, the person the media has now dubbed as the “Mystery Man” attended the meeting. His participation in the NBN project is however still unclear to me. I only know that he was present at a meeting where intermediaries sought to clear the air between the powerful person and I. Needless to state, the ZTE broadband project was discussed openly in the meeting.

As I had feared, despite my efforts to dissuade decision-makers from inking the deal with ZTE, it appears that AHI’s unsolicited proposal was shelved in favor of the overpriced ZTE proposal. Although I am no longer , under oath, interested in the project, my company has filed a petition before the Supreme Court to compel the DOTC to reveal the terms of the ZTE deal for the sake of transparency and public information. Beyond that, again I repeat, I have no further interest in the NBN project.

Many have said that I am only sourgraping because my company and I lost the project. If this deal goes through, it is not only my loss but the loss of the entire Filipino people. This is what I seek to prevent.

I have been constrained to execute an affidavit detailing the graft and corruption and betrayal of the public trust that is the NBN project. I have named the senior powerful person in my affidavit and do so name, before this Honorable Chamber, and under oath, the powerful person as Comelec Chairman Benjamin Abalos. It was Chairman Abalos who championed in pushing for the ZTE proposal. It was also Comelec Chairman Benjamin Abalos who stood to receive for himself any kickbacks from the colossal overpricing of the NBN project.

(Download de Venecia’s affidavit.)

It was Comelec Chairman Benjamin Abalos who fumed and raged at me when he found out that AHI would be pursuing its original contract as submitted to the DOTC without the unnecessary government loan or guaranty. True to form, it was also him that threatened to have Jarius Bondoc and I killed for informing the public of his wrongdoings. When my father suggested the rescission of the ZTE deal, it was also Comelec Chairman Benjamin Abalos who refused and said “Then Joey will win.” It was then that he threatened my life.

I had previously promised to reveal the identity of the “Mystery Man” under oath and in the proper forum. It is with a heavy heart that I cannot deny that it was First Gentleman Mike Arroyo at the reconciliatory meeting. I do however want to make clear that it was his presence alone that I observed and I have no other indication of his participation in the NBN project or deal with ZTE.

I executed my affidavit and make my statements not only now in the spirit of truth and transparency. I have never intended to malign or defame any person. It is in this light that I offer my sincere and heartfelt apologies and regrets to Police General Edgar Dula Torres, who I mistakenly named as part of the Chairman’s cabal. I was only recently informed that it was actually Police General Quirino dela Torre who accompanied Chairman Abalos when we had met on the NBN project.

To Police General Edgar Dula Torres, his spouse, and his family, I offer my sincerest apologies for any inconvenience and ill-repute I may have caused you.

Aside from that regretful error, I stand by the contents of my affidavit. I have, against the well-meaning advice of my friends and loved-ones, disclosed all I know about the NBN project and have sadly exposed myself, my partners, and my family to unimaginable risk and attack form undisclosed quarters. This is the price I have to pay for following my conscience and performing my civic duty.

I now testify before this honorable Chamber as part of this civic duty and in support of any legislation to strengthen and expand the BOT law. I remain steadfast in my belief that such legislation can only prevent government projects form being vehicles for corrupt and illegal enrichment at the expense of the Filipino people.



5 people have left comments

[...] PCIJ has Joey de Venecia’s opening statement. digg_url=’http://www.inquirerbloggers.net/current/2007/09/18/back-off/ ’; digg_skin = ”; [...]

Current » “Back off!” wrote on September 18, 2007 - 6:11 pm | Visit Link

What value does the statement of a non qualified bidder have?
By his own admission he has not even seen the contract yet.
Sana naman if he wants to do a Chavit Singson, I just hope he has just more than “dramatics” and hearsay to excite the people.
After everything he said there is not anyone who will go to jail because of hearsay.
JDV must have problems of having a namesake that is far from being smart!!!

joselu wrote on September 19, 2007 - 4:50 pm | Visit Link

Joey De Venecia’s statement is pretty valuable in a Senate inquiry in aid of legislation. Legally, hearsay applies to statements made out-of-court which a witness is trying to prove in court being offered in evidence IN COURT. The hearsay rule is a rule of evidence applicable only in at trial or judicial hearing. It does NOT apply in a senate inquiry which is by nature not a judicial proceeding. Even if it is “hearsay” and offered in court, Joey De Venecia’s statement is considered a statement against interest which may be admitted in court as one of the many exceptions to the hearsay rule.

adviser wrote on September 20, 2007 - 12:52 am | Visit Link

Adviser, I have my doubts on your exception to the rule.
Never herd of anyone getting jailed because one someones sayso.
Perhaps your forgetting that Joey DV is a losing party to a bidding that he could not have possible won according to many objective reasons.
He has said so many harsh words & accusation. He has to prove them.
We all know bribery is hard to prove specially when there is no money to trace.
A conversation between to people is harder to prove unless he was able to tape it.
What went on in the so called meeting in Wack Wack will be his word alone against all those who where present.
Anyone in his right mind who wants to fight corruptions knows that hard evidence is what counts.Chavit had it.That is why erap is so screwed!
Making noise & drama makes good entertainment alone & a lot of wishfull thinking alone.

joselu wrote on September 20, 2007 - 4:48 pm | Visit Link

sec romy neri holds the key to all of this. if he’ll have the guts to speak and spills the beans then we’ll see what happens.

“Only God and Romy know if under oath he would confirm or deny the other items. I pray that he expound on them. He had told me on that morning of Apr. 20 and several other times that not only a COMELEC official but an influential businessman too was inordinately lobbying for ZTE Corp. The businessman allegedly was responsible for the sudden rise of the ZTE tag price to $330 million days before the signing, when its original offer in Dec. to Feb. was $262 million. What was the $68-million difference for, I asked in subsequent talks. Romy said the businessman was assigned to raise campaign funds for an administration party during the last election.”

More importantly, Romy said a very powerful official arm-twisted him to turn the broadband project from a safe build-operate-transfer plan to a risky outright supply purchase. It was for that reason, he told me on Apr. 20, that he almost resigned from the Cabinet the day before.” Jarius Bondoc
http://www.abs-cbnnews.com/storypage.aspx?StoryId=93669

= = = =

“Perhaps your forgetting that Joey DV is a losing party to a bidding that he could not have possible won according to many objective reasons.” joselu

could not have possibly won according to many objective reasons such as? how can you justify that overpriced deal of supply purchase against a safer build-operate transfer scheme? very objective, right?

and what tape as evidence are you talking about to adviser to prove jdv3’s claim about the conversation that took place in wack-wack? that’s bull because i know what will be your statement if such a tape exist. are you not the one not so long ago who’s denouncing the garci tapes as inadmissible evidence in court because it’s illegal under the anti-wiretapping law? very funny.

jr_lad wrote on September 24, 2007 - 1:47 pm | Visit Link

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