ZTE, Iloilo City Hall: Contracts of horror

Posted on January 30th, 2008

MRS ARROYO has declared that her administration will honor contracts and agreements that it has entered into as long as the deals “go through the required processes, despite media attacks.”

However, we witnessed the Senate inquiry on the national broadband network deal involving the Chinese company ZTE and the alleged link of government officials in ensuring it pushes through smoothly. At the onset, the puzzle seem incomplete giving us a reason to believe that in did not went through the required process as claimed by the Arroyo administration.

I buy the idea of some Senators that we scrap this deal. It is overpriced; it is hounded by irregularities, bribery, kickbacks and corruption. In short, the Filipino taxpayers stand at the losing end as we will be paying the enormous amount of debts that will arise out of this deal.

Moreover, there is no honor in honoring this unnecessary and overpriced contract.
Instead of honor, I believe that the ZTE deal will only serve as “horror” for generations of Filipinos who will foot the bill of this white elephant in the offing.

A “white elephant,” in terms of projects and loans, is a supposedly valuable possession whose cost, particularly cost of upkeep, exceeds its usefulness, and it is therefore a liability.

Examples of “white elephant” projects in the country are the mothballed Bataan Nuclear Power Plant (BNPP), the Austrian medical waste incinerators and the “Telepono sa Barangay” project among others.

In Iloilo City, we have the scam-ridden Pavia Housing Project which was never been utilized for its intended purpose yet Ilonggo taxpayer paid its loans in complete amount including interests.

Another contract of horror is of course the foul smelling New Iloilo City Hall project of Mayor Jerry Treñas that will be made possible by a bank loan. Whatever happens to it, believe me, it is the Ilonggo taxpayers that will again shoulder the cost of its irregularities.

How can the people and the media ignore the issues besetting these deals and contracts? Right from the start the pattern of irregularities has been at the center of Mrs. Arroyo’s administration. The Treñas administration has its share of irregularities, scams and scandals.

Mayor Treñas’ political ally has a good hiligaynon street word that best describe the leadership qualities of this Atenean lawyer, but I will not mention it here. 

Last week, Mrs. Arroyo said that she will create a body that will ensure transparency and good governance in public investments during the launching ceremony of the Bishops-Ulama Conference-Armed Forces-PNP Forum for Peace at Malacañang.

Further, Mrs. Arroyo said that she plans to create a Procurement Transparency Group under the Government Procurement Policy Board. What a ridiculous response. This group would be a great deal of help to government officials who are pursuing projects without undergoing procurement proceedings.

This will be another layer in the bureaucracy and additional cost for the government and will only address future dealings, but not the agreements on NBN or the kinds of projects like the New Iloilo City Hall and the convention-recreational center that will rise in the old Iloilo Airport. 

The groups that Mrs. Arroyo plans to create will only duplicate the existing function of its superior agency and will further complicate things and processes. Why can’t our government officials go through a public bidding on its projects? Oh… yes, securing hefty kickbacks in order to prepare their pockets for 2010. Treñas for congressman come 2010? What else is new?

A good afterthought, let us just be reminded that it is people’s money that these people in power are utilizing in fulfilling their selfish political aspirations and it is our money that are being paid for the cost of their selfishness even after these “leaders” has crossed the afterlife.

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