Transcript of Statement of Rodolfo Lozada Jr.

2 a.m. Press Conference February 7, 2008, La Salle Greenhills

…I was taken from the airport, there was, I guess there was just a miscommunication because I did not know I was to be taken from the tube. So, ah… I was taken from a tube, I was not prepared for that. So from there I did not know the route yet. They took me from the tube.

I guess that's were all the confusion started and I texted my brother that I was already taken by a group from the tube. When I told them that I need to show myself first so that those who were waiting for me will not be alarmed, they said that it's already been taken care of. So I was, I just had to go with them and we, I was driven around.

I guess, for me, it was really a result of miscommunication between the groups who were supposed to pick me up and towards the end of the night, they felt that there's so much noise from the media already that I have to be brought back to the family, to my wife in particular.

That my wife is already staying here at the Brother’s house, so I asked the group who took me to just bring me back to the Brother’s house to La Salle Greenhills, so that's why I'm here.

Okay. So, first I drafted my [statement] via my own writing... I like to start by thanking a lot of people expressed their sincere sympathy for the family so I like to thank them first. There's so many of them. Sa Tagalog, nagpapasalamat po ako sa lahat ng nagpahayag ng kanilang pag-aalala sa akin at sa sampu ng aking pamilya. Ako po ay nagtawag sa pagupuplong na ito upang mabigyan ng liwanag…

Ang dami kasing katanungan ng bayan ukol sa (national broadband network) NBN-ZTE na ito at upang huwag na sanang mapilitan pa ang iba, marami nang napipilitan pang magsinungaling dahil sa akin. Hindi naman sila kasama rito, napipilitan pa silang magsinungaling. Ayaw kong maging dahilan na magkaroon pa na magkasala sa Diyos at sa bayan kahit sinuman. Ayoko ho iyon.

Mabigat po sa aking damdamin ito at sa isipan itong aking gagawin ngunit kailangan kong gawin ito para sa kaunawaan, para magkaliwanag na ang mga isipan ng bayan tungkol sa mga bagay na ito na lubhang nakakaapekto sa kinabukasan nila.

Ang aking mga ilalahad na salaysay ngayon ukol sa ZTE-NBN ay iyong mga bagay na iyong ako ay may personal na ginampanan. These are the things that I'm involved with and I'm going to say this with malice on no one.

Wala ho akong malisya sa kahit ninuman bagkus ang sasabihin ko ay kung ano lang iyong ginawa talaga namin at anong nangyari. So iyan lang po ang ano ko, opening statement.

From my recollection of events, I start off.

The first time I was introduced to this project by Secretary Neri with an introduction to Chairman Benjamin Abalos. I guess if it was not late September or early October, I was introduced by Secretary Neri to [Commission on Elections] Chairman Benjamin Abalos in Wack-Wack [Golf and Country Club] together with his usual entourage sina Ruben Reyes, Leo San Miguel, and the ZTE representatives Yu Yong and Fan Yang... and we had lunch in Wack-Wack, wherein we talked about the NBN-ZTE, and the good secretary asked me to help him out understand what this whole project is all about.. okay, so that was the first.. if I remember right, the secretary told Chairman Abalos to course his project proposal through the proper channels.. NEDA (National Economic Development Authority) received the first copy sometime in October, of the first version of the CICT (Commission on Information and Communications Technology) feasibility study.. it was prepared by ZTE, of course CICT. It was signed by the then secretary.. all questions were referred back to Asec (Assistant Secretary Lorenzo) Formoso..

When the secretary game me a copy to review, the first thing that really caught my attention when I was reviewing the financials was the financial projection were based on Abante Tonite September 20, 2006 issue wherein they were quoting how much government was spending for telecom expenses.. so I found it funny then that a multi-billion peso project was based on a data reference from a tabloid. so anyway, that was what I remembered..

So, I told the Abalos group through their guy Leo San Miguel that they should revise their proposal, they should fix it and try to avoid the education part of it because there was a CyberEducation project.. so it was sometiome in early November that Joey (Jose de Venecia III) was introduced to me by Secretary Neri because Joey presented project proposal for the NBN, and the secretary asked me if it was appropriate and I said yes so he encouraged Joey to pursue the project development further.. and when the secretary asked me if there was a synergy between the two projects and I said yes. But both of them were pitching for the same project. so the secretary told me to reconcile the two proponents. and at that point it was really a good project..

And at that point when the secretary told me to reconcile the two proponents, I immediately went to work and proposed a structure for the two proponents wherein both of them can achieve both of their objectives. since Joey's objective was to do a BOT (Build-Operate-Transfer) with government, which was completely above-board, and Chairman Abalos's objective was to do a project on a loan basis.. so the project structure I proposed was that Joey becomes the lead contracting party to government because it's on a BOT basis anyway, and that Abalos achieved his objective of supplying, becomes a supplier to Joey's project...

So I thought at that point this was already a win-win situation for everyone involved. The government gets its NBN project, Joey gets his BOT project, and Ben Abalos gets his supply contract.. so at that point I left them already to do their own thing. its finished.

But I guess the trouble started when Chairman Abalos wanted to protect his $130 million... how shall I put this commission on the project.. dapat daw proteksyonan yung 130 million, and he'll agree that Joey will become the main proponent.. at that point I just felt na being like a consultant to the proejct I told them that it might be a little too big..in the vernacular, sabi ko bubukol po ito, at sabi ko siguro kalahati pupuwede, but nonetheless, I relayed the information to Joey. because it's going to be Joey's project anyway.

And then Joey, his reaction, reaction was like really ballistic. He's worried where, saan niya kukunin ang 130 million na ito.. because the project cost is 262 million dollars and Abalos wanted 130 million dollar na commission.. so sabi ko sa kanila hindi ko problema iyan, that's your problem sabi ko kina Joey.

So at that point, I don't know if the listener can realize how much money na pinag-uusapan, these are millions of dollars.. at that point I was telling them problema niyo na ito, basta you make sure you get this thing together because we do not want another Atong Ang - Chavit Singson scandal to rock this country.

Sabi ko basta it's very clear, both of you can be.. basta iyong maayos lang.. sometime in December, the ZTE reps si Yu Yong at Fan Yan.. became quite close to me along the progress of the work, was already geting frantic, talking to me about develoment in the project because they already given enough advances daw to Chairman Abalos. So sabi ko sa kanila the project is moving along so they should not be alarmed.. it was also at this point because of Joey's hesitance to agree on the 130 million dollar commission, Chairman Abalos started considering doing the proejct on his own.

Didiretso na siya. ang sabi ko ho sa kanya, sir hindi po puwede na didiretso kayo kasi ang kabilin-bilinan sa akin ni Secretary Neri, na iyon din ang utos 'ata ng presidente na this project can only be done through a BOT basis, hindi puwedeng utang.. so I was standing firm on that, na hindi talaga pupuwede.

At that point, that was the time that Chairman Abalos, halika tawagan natin si FG (First Gentleman Miguel "Mike" Arroyo). Tinawagan niya, sabi niya pare nandito ang taga-NEDA sa katabi ko hindi daw puwedeng iutang ang project ko.. I cannot hear the voice on other end, pero sabi niya, kung ganyan kayo kausap.. and then the Chairman continued, kung ganyan kayong kausap ang hirap niyo palang kausap. kalimutan niyo na lahat ng usapan natin....

I don't know what that meant.. but the following day, totoo nga a letter from the Chinese ambassador came adressed to the government (I don't know if it was still Mike) and stating that, this was already December, you can check this na lang sa record.. because im just doing this through my own recollections. wala ho akong kaanu-ano sa mga records sa mga dokumento. But if you can check sometime December, a letter addressed to Mike 'ata came in from the Chinese ambassador saying that there is now money available for loan for the NBN project independent of the CyberEducation project.. kasi ang CyberEducation iyon ang napag-agreehan na ilo-loan nga.. so ngayon, there's another loan na naman, puwede na rin iyong NBN I-loan.. so that was sometiome early December if I'm not mistaken...

So I told the secretary about it, si Secretary Neri.. and his instruction to me was very clear, sabi niya "Jun, you moderate their greed." I was naive to accept that order. So I do not know what moderating greed means.

But I followed Secretary Neri. and due to the insistence ng mga taga-ZTE that the proejct gets going, Chairman Abalos invited us sometime towards third week of December, I'm pretty sure of the timing, for a dinner in Makati Shangri-La.. he asked me to invite Joey as well kasi si FG will be there with us. actually the First Gentleman did not say much, except that Chairman Abalos told him that pare OK na kami nina Joey. okay na kami sa NEDA. "Ah ganun, so buti naman OK na. OK na."

So I'm just narrating to you as it is as I said with no malice intended whatever that means kayo na po ang bahalang mag-ano..

So and then off they went to China, I did not join them anymore, so I guess Joey can fill in what happened in China.

So sometime early January naman, so Secretary Neri again invited us for lunch with Abalos in Makati Shangri-La in the Chinese restaurant together with Yu Yong, Fan Yan of ZTE and the Chinese commercial counselor.

At that point the Chairman [Abalos] again was making the impression that the project is already a go. Maybe there was a parralel track because from our end it was not yet a go. So, there was some negative reaction from the ZTE person and the secretary noticed some awkward moments there and he immediately asked [for] a leave. He said he has to go and then he asked me to stay behind.

When they came back to the room Chairman Abalos and the ZTE guys were in furious exchange of words. because the ZTE people were like demanding from Chairman Abalos that he promised that the ZTE deal will be done on a loan project ala-the NorthRail.

I don't know what's their pick about the NorthRail. They keep on mentining ala-NorthRail loan agreement. That was the last meeting I had with the Chairman and on January 18, I remember the date very well.. this is the only date that I can remember. because this is the date I quit the project. I gave said bye to the project.. I was then in Dumaguete in Negros together with Henry Teves, when Chairman Abalos called me up, it was some like early evening. and asked me questions like - Alam ba ni Neri ang ginagawa mo? I said opo. Alam ba ni Neri ang ginagawa mo? Opo. Alam mo bang malapit ako sa militar? Opo. Alam mong malapit ako sa intelligence? Opo. Alam mo bang malapit ako? Opo.

And then he started cursing, mura siya ng mura in Tagalog, lahat-lahat.. ang ano niya nandito sa akin ang CD ng lahat ng phone conversation ninyo nina Joey.. 'yan mga hayop kayo tinatraydor ninyo ako... I don't know what gave him that impression but I know that the MIG-17 (Military Intelligence Group 17) in ISAFP (Intelligence Service Armed Forces of the Philippines) can do that, which Chairman Abalos, Ruben Reyes was pretty close to. I was not surprised. So, I just took it with a grin and then Chairman Abalos ended up his tirade with me with his words na "Huwag kang magpapakita sa aking hayop ka sa Wack-Wack o sa Mandaluyong at ipapapatay kita.."

So that's where all my troubles started.

So I quit the project, I told the secretary I don't think this project is worth risking my life for. All I did was try to help the good secrtary to understand this.

So on February '07, an executive order (EO) was issued.. so this is now just to complete where my personal participation ended and where it ended.. on the project progress. In February '07 an EO was issued by the Office of the President... transferring the TELOF (Telecommunications Office) to the implementing agency to DOTC (Department of Transportation and Communcations) and on April, I guess everyone knows this already the NBN project was approved by the joint-NEDA ICC (Investment Coordinating Committee) and (CABCOM).. at P329 million ...

When I quit the project, the project cost was 262 million dollars, when it was approved.. I don't know what happened then.. I'm not imputiong anything now. But when it was approved it was already approved at 329 million dollars. And the day after it was approved, the president together with some of officials went to China to witness the signing of the agrement.. so I guess that's were all my narration of the events of the ZTE would end.

I just have one statement lang in Tagalog.

This project for me is just one transactional example of a dysfuntional government procurement, like a systemic dysfunction of how we procure projects.. there are other more that have escaped scrutiny, but ganoon din ang sistema..

I have agonized over this decision, both sides know, like many people who had been trying to get me to speak, no (one) knew that I dont want to speak along partisan lines. I do not want this statement to be taken as a partisan political exercise.. I just want to give this to the country.. I've suffered long enough, agonizing over this. I'll just give you my prayers kung ano bang dasal ko naman sana after nito..

Ang dasal ko lang sana maintindihan ninyo ang dusang dinadanas ng pamilya ko ngayon, ano, ang dasal ko lang sana matutunan na natin after nito na ang salitang Pilipino ay hindi lang tumutukoy sa isang pamilya.. ang salitang Pilipino ay tumutukoy sa isang bansa.. isang bansang Pilipino and sometimes it's worth taking a risk for this country... (crying)... maraming salamat po...

Meron ho akong mga napirmahan nitong mga nakaraang araw, paki-ano na lang po 'yon, because I signed it without really, I signed some affidavits this morning, I signed yesterday, I signed some security request so, paki-pasensiyahan n'yo na lang po 'yun na pinagpipirmahan ko 'yon. I signed it in their company.