Press Release
November 16, 2009

Gordon: Lozada and Joey De Venecia, probable state witnesses

Senator Richard J. Gordon today said that both Rodolfo Noel Lozada and Jose De Venecia III cannot be considered whistleblowers, but probable state witnesses, due to their involvement in the anomalous National Broadband Network-ZTE deal.

Gordon made the statement as he stressed that the country's leaders should set a good example to the youth and impart in them the values of integrity and accountability by ensuring that those who violate the law are punished.

"As a lesson to our youth, we must put forth the message that if you violate the law, you will not be rewarded. It is incumbent upon us, the leaders, to explain what the law says and to ensure that those who violate the law are punished," said Gordon, chairman of the Senate blue ribbon committee.

"This is not to say that Lozada and De Venecia should not be recognized for telling the story from the inside. But a distinction must be made between a whistleblower and a 'probable' state witness. A whistleblower does not participate in the crime, he witnesses it and then reports about it. A state witness is one who, while not squeaky clean, is not the most guilty," he added.

The senator pointed out that when he released the committee report on the Senate's inquiry into the NBN-ZTE deal, some disagreed on the inclusion of Lozada and De Venecia in those recommended for further investigation.

Gordon, however, warned that exempting the two from liability in the botched project is tantamount to sending the message that, "It is okay to try to get money on an illegal deal; but make sure that when things go wrong, you be the first to squeal--and you can be made the hero."

He added that it would have been unfair not to have made findings, conclusions and recommendations when testimonies and evidence showed that Lozada and De Venecia were involved in the deal.

The committee report stated that Lozada violated the Civil Service Law when he got involved with the NBN project even though he was an employee of Philippine Forest Corporation, an agency connected with the Department of Environment and Natural Resources.

Lozada likewise violated the Anti-Graft and Corrupt Practices Act. Aside from his active role in the negotiations, he also admitted that there is a '"permissible zone" for corruption, even suggesting to former Commission on Elections chairman Benjamin Abalos to reduce the "commission" he was asking to $65-million.

On the other hand, De Venecia violated the Anti-Graft and Corrupt Practices Act because his company, Amsterdam Holdings Inc., filed a proposal for the NBN project even when his father, Representative Jose De Venecia Jr., was Speaker of the House at that time.

"With these facts appearing before the Committee, it would have been 'NOT FAIR' not to have made a finding. Many of our children are watching us. Greater than at any time in their young lives, today's events will provide them with lessons--good or bad. We must really be very careful here," Gordon said.

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