Dante Madriaga. Thanks to Reuters
Aside from Gloria Arroyo, only three other persons were included in the graft charges filed by the Ombudsman with the Sandiganbayan last week in connection with the grossly overpriced NBN/ZTE deal.
They were Gloria Arroyo’s husband, Jose Miguel Arroyo, former chairman of the Commission on Elections Benjamin Abalos, and Leandro Mendoza, former secretary of the Department of Transportation and Communications.
During the Senate hearings on the controversial deal, there were several names mentioned who have allegedly participated in the attempt to con the Filipino people of P14.8 BILLION (peso equivalent of $329 million, the cost of the project at the exchange rate of P45 to US1).
Those that I remember were Ruben Reyes, Leo San Miguel, General Quirino de la Torre, Jimmy Paz, and former Arroyo Spokesman and Environment Secretary Mike Defensor,
Reyes never appeared in the Senate. He allegedly has strong connections with the Intelligence Service of the Armed Forces of the Philippines. His name surfaced in the cheating in the 2004 elections and in the Northrail project. He was known as a Mike Arroyo operator but some sources said he was actually an associate of Gloria Arroyo’s brother, Diosdado “Buboy” Macapagal, Jr, who is now based in Canada.
One of the witnesses mentioned by the Ombudsman in the information filed with Sandiganbayan is Dante Madriaga, the engineer who served as technical consultant in the NBN/ZTE deal.
Madriaga appeared in the Senate and here are excerpts from his testimony submitted to the Blue Ribbon Committee which mentioned the role played by Reyes and San Miguel:
Leo San Miguel
“May 2006 -Chairman Abalos enlisted the help of Ruben Reyes a golfing buddy to come up with a team to expedite matters. Ruben Reyes contacted General Quirino de la Torre and Leo San Miguel. I was approached by Leo San Miguel whom I had known before to work on the project. I provided Leo inputs on the Arescom proposal which ZTE used as a basis to start their design.
“June 2006 – Ruben Reyes, Leo San Miguel, Gen. de la Torre, Stephen Lai, Yu Yong, Fan Yang meet on June 16 at the Makati Shangri-La in a private environment to discuss the NBN project. They were later joined by Chairman Abalos who left first. We start the design work but are hindered by cost constrains. There is no possible way to achieve the $130M Arescom budget with the commissions that were needed. They decide to increase it to $190M and later added some more components to make it $262M.
“Same group meet on June 18 with the addition of Secretary Mike Defensor and Abalos Chief Of Staff Paz and without Stephen Lai meet in Wack-Wack to discuss details on the commissions.
“August 2006 – On August 11, group goes to China and demand an advance payment upon orders from the boss ostensibly to facilitate the approval and for PR. Chairman Abalos leaves first over the weekend. They get it after mentioning the name of the FG. Ruben Reyes is designated as the recipient.
“Group comes back from China on August 15 and meets again with Chairman Abalos to tell of their success. US$ 1M was doled out , Ruben Reyes was designated as the recipient.
“Design is changed again trying to fit the commitments. ZTE and group argue on the profit margins, they finally decide on September 28 that the increasing the project amount to $270M will give them a margin of $70M each.
“October 2006 – The name Joey de Venecia suddenly comes into play and makes the group worried. He wants the same project but on a BOT scheme and is adamant about it, he had the idea long before Arescom and ZTE conceptualized it in fact the whole idea the Arescom proposal came from Joey.
“Leo San Miguel is tasked to fix the problem since he personally knows Joey. The negotiations do not progress because of Joey’s distrust for the group. Group meets at Wack-Wack on October 11 and decides to ask the FG for help on how to handle Joey.
“Ruben Reyes, Chairman Abalos and General De La Torre fly to China on October 14 and discuss the problem with the ZTE officials about Joey. ZTE is alarmed but is reassured that everything will be taken care of with the intervention of the FG.
“December 2006 –In a meeting in Wack-Wack in December 5, FG and Abalos try to convince Joey to just partner with them and quit his objection. In the meeting at Wack Wack FG threatens Joey by telling him to back off and stay out of the project.
“March 2007 -Help finally comes on March 8 in the person of Ricky Razon who helps them secure the approval of PGMA in order to meet the deadline for final NEDA approval by the executive.
“Group meets on March 12 in Wack- Wack with Yu Yong and Fan Yang but could not agree on how to handle the compensation for Razon. They finally expand the proposed coverage to increase the amount to $329 thereby solving their problem.
“Joey is furious when the NBN proposal is approved and threatens to expose all the dealings that stopped his much superior proposal. Group does not appear to be worried and thinks it is just sour griping. Upon approval by the NEDA group meets on March 28 in Wack Wack with ZTE and demand another cash advance which they got. Ruben Reyes is the designated recipient again.US$10M is again doled out.
“April 2006 -Group meets again in Makati Shangri-La on April 4 with Yu Yong and Fan Yang of ZTE to discuss ways of getting upfront money to finance partly the elections and some personal needs. Ruben Reyes is again designated as the recipient.US$ 30M is again doled out.
“Yu Yong agrees but on the condition that PGMA be present at the signing. PGMA promptly goes to China to witness the signing.
“FG cannot participate since he is hospitalized and Abalos is busy with the elections. Ruben Reyes takes over all of the negotiations and transfer of funds.
“Upon arrival from China on April 27, Secretary Mendoza and Secretary Favila visit the FG and inform him of the good news.”
Will Ruben Reyes, Leo San Miguel and others be made accountable for their role in this onerous deal?
Related links:
http://www.ellentordesillas.com/2008/02/06/the-madriaga-file/
http://www.ellentordesillas.com/2008/02/27/arroyos-30-million-witness-fee/