Press Release
October 24, 2007

ROXAS: SENATE WILL PURSUE
NBN PROBE TO ITS LOGICAL END

CALLS ON EXECUTIVE TO RESPECT PEOPLE'S RIGHT TO INFORMATION

Senator Mar Roxas is optimistic that the joint Senate investigation on the controversy involving the government's contract for a National Broadband Network (NBN) with ZTE Corp. will result in meaningful reforms to how the government transacts big-ticket development projects.

With two initial bills already filed seeking to amend laws on procurement and on Official Development Assistance, the chairman of the Senate Committee on Trade and Commerce is looking forward to a package of reform measures to ensure good governance, transparency and checks and balances.

"We in the Senate will make sure that this probe is pursued to its logical end, in aid of legislation. At the end of these hearings on the NBN, we will make sure that we have all the tools and measures against those seeking to make a windfall from overpriced deals, at the expense of the people," he said.

Roxas called on the executive branch to uphold the people's right to information by allowing its executives to appear before the Senate's hearings on the soured NBN deal.

"The cancellation of the ZTE supply contract does not absolve the institutions or individuals concerned in the eyes of the public. Let the public judge with finality on whether their interests were protected or jeopardized by this agreement," he said.

The chair of the Senate trade committee said he intends to raise before the joint committees the request of the Department of Transportation and Communications (DOTC) to tackle the annexes to the supply agreement only in an executive session and with a representative of ZTE present.

"This request has yet to be fully discussed by the chairs and members of the committees. I, for one, believe that the people's right to know must prevail," said Roxas, who is co-chairman of the NBN probe together with Sen. Alan Peter Cayetano of the Blue Ribbon committee and Sen. Rodolfo Biazon of the National Defense committee.

"I maintain my stand that such documents dealing with a project tied to debt which will later on be financed by taxpayers' money should be made public," he added.

Roxas said the presence of key Cabinet officials and their cooperation in providing documents including the minutes of the National Economic Development Authority-Investment Coordinating Council (NEDA-ICC) meetings will alleviate doubts of stonewalling the probe through the invocation of executive privilege.

"The challenge before the administration is to restore its credibility and win the trust of the people. I hope that they see the Thursday hearing as an opportunity to do just that," he said.

Roxas has filed Senate Bill No. 109, or the proposed Free Information Act, which mandates that all information held by government shall be made available to the public, save for a few exceptions relating to privacy of individuals, national security and public order, diplomacy and trade secrets.

The bill seeks to mandate that "treaties, trade agreements, contracts between agencies and/or government-owned and controlled corporations, and implementing agreements, annexes, side letters and other such documents pertaining to dealings entered into by the Government of the Republic of the Philippines with another sovereign state and binds the Government to uphold such transactions under international and local law" shall be made available to the public and not covered by the exception on diplomacy.

The senator filed his two new bills seeking to ensure checks and balances in the government's project evaluation and procurement processes, after consultations with experts.

Senate Bill No. 1793 amends the Government Procurement Reform Act to make sure that the principle of competitive bidding or price challenge is upheld even in procurement in relation to treaties and executive agreements.

And in cases when bidding or price challenge is not observed, Senate Bill 1794 amending the Official Development Assistance (ODA) Act seeks an additional safeguard, that the project must be ratified by two-thirds of the Senate. This bill also seeks to limit loans which could be considered as ODA.

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