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Accuser hands over 'bribe money'
Tue, Feb 19, 2008 The Straits Times
MANILA - A FORMER Philippine official who has accused the husband and a political ally of President Gloria Arroyo of corruption has produced bundles of money that he said were used to try to buy his silence. 'I am returning this because I failed to do my part of the bargain,' Mr Rodolfo Lozada said yesterday during a public Senate hearing that is investigating corruption allegations involving huge bribes over a failed national broadband deal. He handed over a large brown envelope containing five bundles of cash worth half a million pesos (S$17,400). He said the package was handed to his family when he was sent to Hong Kong earlier this month by his boss, Environment and Natural Resources Secretary Joselito Atienza.

The President cancelled a US$329 million (S$465 million) national broadband network deal with China's state-run ZTE Corp as a result of the graft allegations.

The allegations have resulted in renewed calls for Mrs Arroyo to step down. Last Friday in Manila's financial district, more than 10,000 people attended a protest rally, and a special mass on Sunday attracted more than 4,000 people.

Some 60 former Cabinet secretaries from governments going back to late dictator Ferdinand Marcos have signed a petition calling for the President to resign.

The powerful Roman Catholic Church, which was a pivotal force in overthrowing Marcos, has remained silent, although individual bishops have spoken out against Mrs Arroyo.

Mr Lozada testified on Feb 9 that Mr Abalos and Mr Arroyo put pressure on the government to approve the overpriced contract with ZTE in order to collect US$130 million in kickbacks.

Both Mr Abalos and the President's husband have denied the allegations.

Meanwhile, the ombudsman, a state prosecution office that specialises in corruption cases, yesterday launched a separate inquiry into the deal.

Unlike the Senate, the ombudsman has the power to file charges against anyone found guilty of graft. However, Filipinos are sceptical about its independence because its head, Ms Merceditas Gutierrez, was appointed by Mrs Arroyo and is a former classmate of Mr Arroyo.

The Philippine Cabinet has also publicly stated its support for the President.

A joint statement read out at a news conference yesterday by Executive Secretary Eduardo Ermita said: 'Amid calls for us to resign, all members of the Cabinet are solidly behind (President Arroyo). We in the Cabinet firmly believe that the President is doing much for our country, especially for the economy, and she deserves to finish her mandated term until 2010.'

The Cabinet urged Mr Lozada to go to court with his allegations, 'which is the proper venue in accordance with the due process of law'.

Analysts say that Mrs Arroyo' position remains secure because the dominant Roman Catholic Church has not called for her to go, and she has the support of the military and the Lower House of Congress.

The President has so far survived three impeachment bids and at least three coup plots. Her final term runs out in mid-2010.

AGENCE FRANCE-PRESSE, REUTERS