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| ON THE OTHER HAND |
| A-B-Z-T-E-F-G
By Antonio C. Abaya Written on Sept. 19, 2007 For the Standard Today, September 20 issue NOTE: According to an unnamed �intelligence source� in Malacanang, Joey de Venecia �has been talking to newspaper columnist Antonio Abaya to help him destroy the credibility of ZTE.� This tidbit will appear in several newspapers tomorrow, Sept. 20. I completely deny this stupid lie. I have never met Joey de Venecia in my entire life. I was not even aware of his existence until I saw him on television yesterday, Sept. 18, when he testified in a Senate inquiry. The article below is the first and only article I have ever written about Joey and/or ZTE. Malacanang�s �intelligence source� badly needs a lobotomy. Can we believe Joey de Venecia, during a Senate inquiry yesterday, that Jose Miguel Arroyo � Mike Arroyo � husband of President Gloria Macapagal-Arroyo � pointed his finger about two inches away from Joey�s face and barked at him to �Back off!!�? I believe him. There were several other people in that meeting last March in a function room of the Wack Wack Golf and Country Club. They included DOTC Secretary Leandro Mendoza, Comelec chairman Benjamin Abalos, Abalos� chief of staff Jimmy Paz, and three other individuals associated with Abalos. I do not know him personally, but I doubt if Joey � or any one else � would invent such a shocking revelation about an incident witnessed by six other people, plus a waiter, if it never happened at all. As these six individuals are all hostile to Joey, it is possible that they would put a different spin on the incident, but it would be a real shocker if all six were to deny, under oath, that this incident took place. But why would Mike Arroyo point his finger about two inches away from Joey�s face and bark at him to �Back off!!�? And back off from what? According to Joey, Mike Arroyo wanted him (Joey) to withdraw from the National Broadband Network (NBN) project, which had been awarded (without public bidding) to a Chinese corporation, ZTE Corp., for which Benjamin Abalos had allegedly been acting as broker. Why was there no public bidding for this contract or memorandum of understanding or whatever, contrary to normal government processes, especially since there were at least two other corporations interested in the project? Only Chairman Abalos and DOTC Sec. Mendoza, and possibly Mike Arroyo and President Arroyo, know. The two other corporations interested in the NBN project were Amsterdam Holdings Inc., of which Joey de Venecia is founder and majority shareholder, and an American company, in whose behalf US Ambassador Kristie Kenney publicly voiced, weeks ago, some misgivings about the lack of transparency in Philippine government contracts. It would seem that Joey was being a sore loser in this matter, since he lost in the bidding, except that 1) there was no public bidding; 2) he claims the ZTE offer- worth $329 million - was over-priced by $130 million in relation to his company�s offer; 3) he accuses Abalos of offering him (Joey) a $10 million bribe to withdraw from the project, which Abalos denies. It is in this context that Mike Arroyo�s �Back-off!!� is to be seen. It seems to be the stick to supplement the alleged $10 million carrot. According to Joey, Arroyo, Abalos and Mendoza are golfing buddies in Wack Wack. Nothing wrong with that, except that in this particular case, their personal interests seem to have converged. The contract � or memorandum of understanding or whatever they want to call it � accepting the offer of ZTE Corp was signed last April � after the Wack Wack incident -by DOTC Sec. Mendoza and Yu Yong of ZTE Corp. in Boao , China , and was witnessed by President Arroyo herself. Aware of the political implications of his expose on the political fortunes of his father, the one and only Jose de Venecia, Jr., a principal ally of President Arroyo, Joey attempted to shield her from any fallout from this scandal by constantly referring to her as �my President.� But �my President� witnessed the signing of the contract � or MOU or whatever they want to call it. And that document cannot be examined because it was �stolen� from a hotel room in China . Does anyone believe that? I don�t. (It sounds like Lintang Bedol � remember him? � who could not produce the controversial electoral documents of Maguindanao in his custody, because they had been �stolen� from his hotel room somewhere.) I believe the document with ZTE cannot be produced because it contained previously overlooked provisos either patently inimical to the country�s interests and/or indicative of the personal interests involved in the deal. Any offer to �reconstitute� that document should be rejected. The Supreme Court is right in issuing a TRO on the ZTE contract or MOU. It hope it will rescind or revoke it altogether, and order a public bidding instead, with all interested companies invited to submit tenders. Without prejudice to criminal prosecution of the individuals involved in the scam. Weeks ago, Sen. Panfilo Lacson announced that he had a witness who will execute an affidavit detailing the alleged bribes given by ZTE to certain individuals, including �The Big One� and �The Little One.� Sen. Lacson should now put up or shut up. His previous exposes, aired on the Senate floor, did not result in anyone being tried, convicted or jailed. People are fed with these kinds of exposes and investigations, as they are rightly viewed as a waste of everyone�s time if they do not send anyone to jail. Even the courageous Joey, who named names without parliamentary immunity, stands on shaky grounds. It has been pointed out by several observers, including Sen. Francis Escudero, that both Joey de Venecia and Mike Arroyo were liable for violation of the anti-graft and corruption law (RA no. 3019) which forbids relatives of the president, vice-president, Senate President and House Speaker, up to the fourth degree of consanguinity, from being involved in government contracts. And then there is the matter of national security. Why award an NBN contract to a company that is not only a foreign one but one that is owned by a foreign government ( China )? The NBN is meant to connect the entire Philippine government structure through a broadband cyber-backbone. Does that not give China an insider�s look into every decision made by every department and every government agency in the country, even on matters involving national security, big-time smuggling, piracy, counterfeiting, drug trafficking, poaching, illegal logging etc in which Chinese nationals � some of whom are no doubt government agents - are often involved? Only recently, both the Pentagon in Washington and the German Bundeswehr headquarters complained that their computer systems had been broken into by Chinese hackers traced to the People�s Liberation Army. With our NBN set up by ZTE or its clone, China does not need hackers to know what the Philippine government plans to do on anything. All they have to do would be to turn on their computers, type the relevant URLs, and all the information they need would be on their monitors. Simple as ABCDEFG. Or AB-ZTE-FG. AB (for Abalos, Benjamin), ZTE and FG (for you-know-who). ***** Reactions to [email protected]. Other articles in www.tapatt.org and in acabaya.blogspot.com OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO Reactions to �A-B-Z-T-E-F-G� On Mike Arroyo�s Trip to Europe On the National Broadband Project Worries about Chinese Spyware Software NOTE: If you had sent a reaction to the above article and it does not appear below, it means we did not receive it. We have received complaints in the past few days from readers who said their emails to us had been bouncing back to them. This is part of the problems we have been experiencing since Sept. 19, which we believe had been deliberately and maliciously caused, as explained in my article �Figure This Out� of Sept. 25. ACA. Greetings from Las Vegas , Nevada- What the nation needs to do is to make a laundry list of all the illegal and improper actions taken by President GMA and the First Gentleman. And, of course, this should not be limited to the First Family. We must include the members of the GMA Cabinet, all our elected and appointed officials in the national government, to start with. We will expand that list to include our provincial, city, town, barrangay officials, in the following episode of "Jail Them Crooks - 2" And, we, the people, must make sure the day of reckoning comes, as it has to former president Erap.... unless we allow this Big Fish to go free...(whose sentence, legally, and properly should have been death for plunder, according to our laws, but which sentence I would commute to life, if I were the sitting president, if that were the scenario.) Best wishes for a better Philippines !!!! Philip S. Chua, M.D., 9by email), Las Vegas , Nevada , Sept. 20, 2007 Cardiovascular Surgeon wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Dear Tony, Another multibillion dollar scam in ZTE. My God, the unborn Filipinos have been mortgaged and chained to poverty. Me, I will just pack up and leave with my siblings and return for a sentimental visit 30 years from now. Grabe ang nakawan. Erap is simply kindergarten compared to the grand larceny whose impact will be felt through generations of Filipinos. Vic del Fierro Jr., (by email}, Sept. 20, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Mr. Abaya, Hmmm...something smells fishy! Well, what else is new? Reactions such as those of Malacanang et al betrayed their culpability. There must be some grain of truth from the "hearsays and rumors" if they would elicit such a reaction (i.e. accuse you of destroying the credibility of a bogus contract.) With all the MAs, PhDs and other alphabets that appear after the names of people in the government, they can still be as dimwitted as Ed, Edd and Eddy (courtesy of Cartoon Network that my son watches). Grace Santos, (by email), Sept. 20, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Hi Tony Congratulations, how you can produce good quality articles regularly. More power to you. Mabuhay ang TAPATT. Nandy Pacheco, (by email), Sept. 20, 2007 Ang Kapatiran wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Dear Tony, Yes, I received the ABZTEFG article. How is Governor Padaca doing up in Isabela? I accompanied her around the US for three weeks last year, and from my perspective I was impressed. She was received enthusiastically by Philippine communities in all the cities we visited. They knew about her already. All the best. Lee Bigelow, (by email), Provence , France , Sept. 20, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Dear Mr. Abaya, Please send advice whenever you are going to be on TV so we can watch. You cover a much wider range of issues in interviews compared to your articles. M. G. Espaldon, (by email), Ayala Alabang, Muntinlupa, Sept. 20,2007 (I try to. But sometimes the invitation comes on the day of the interview, so there is no time to send notices. ACA) wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww A great article. Keep it coming. P. Emiraida Kiram (by email), University of Wisconsin , Sept. 20, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww I forwarded this article to the Cepol egroups where I moderate.Below is a copy of my post to Cepol. Ogie Reyes, (by email), Sept. 20, 2007 It is a basic principle for confounded "solvers" to go down to the basics, the ABCs, of a complex problem. Yeah, but what is most basic in this graft ridden government complex of ours? It seems the more I look the less I find. But here's a clue, from P. J. O'Rourke, American political commentator, journalist, writer and humorist: "No drug, not even alcohol, causes the fundamental ills of society. If we're looking for the SOURCE OF OUR TROUBLES, we shouldn't test people for drugs, we should test them for stupidity, ignorance, GREED and LOVE OF POWER." [CAPs mine] What is with A-balos, B-enjamin? and our God-saved from the brink of death F-irst Gentleman? Why the need to Z-oom T-o E-xtort from the C-hinese who may be our G-reatest E-nemy tomorrow? Mon is right to expose and incessantly campaign against these gluttons. GREED when it becomes a habit is seemingly unstoppable. Not even the devil's doomsday threats can stop the FG from missing a step in his greedy pace. For a momentary, I thought historic one, he was diseased-stopped but only disease-delay it was. Here is an apropos quote on it: "Greed is a bottomless pit which exhausts the person in an endless effort to satisfy the need without ever reaching satisfaction." Erich (German born American social philosopher and psychoanalyst,1900-1980) I thought well of the better "preventive" lesson learned from the 'Erap-fable' conviction - to hold sway over the plundering tendencies of highly placed "honorable" government officials, especially first couples. Oh, well, I guess, NOW, I can accept FG's repeated claims that he is NOT a government official. haaay, let another scheme work for our FG. Tough, even the devil-lord's near-death ploy didn't work. He is back to business as usual, maybe in greater intensity as he seems to hear the tolling of the bells. Here is ACA, folks, on what else is awry with the ZTE deal. Ogie Reyes wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww. Grasping at straws. As can be expected, they are trying to deflect the focus by attacking Joey de Venecia who probably was also using his relationship with JDV to secure government contracts, but this does not detract from the fact that the ZTE contract is anomalous. Poch Robles, (by email), Pasig City , Sept. 21, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww. I have forwarded this article to other forums also. Baltazar H. Patron (by email), Sept. 21, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Dear Tony: I already reacted to this article when I first came across your short question as to whether I got your ABZTEFG piece. Allow me to respectfully reiterate that the only way to cut the crap is to go out and lynch Gloria and her criminal syndicate. Note that I am not advocating the use of firearms or explosives: I think we'll get more satisfaction getting our hands dirty. And if this offends some people, I want to sincerely apologize - but will still insist that this is the only way to cut the crap. Tito Osias, (by email), Sept. 21, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Hi Mr. Abaya, You know, it didn't come as a surprise...that the First Gentleman is involved...what else is new? Well, it looks like he is not quite as "gentle" as his position suggests. The big question is...where is this story going to lead us? Is there going to be a "happy ending" or should I say "justifiable ending" to this yet another "fiasco" in the Philippines . BTW, I do appreciate getting your stories and reports and want to thank you for the audience you gave me during my political campaign. As always, Theodore B. M. Aquino, (by email), Sept. 21, 2007 Kuya Ted wwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Wasting my time for more than six hours yesterday, Sept 20 (and last Sept 18) listening to the "delegates" of "my president", I can conclude the following: 1. Joey DV III is telling the truth. He was a user of marijuana; I salute him for telling the truth. I also salute him for saving around 2000 drug addicts (I hope I heard the correct number)� He was present in Wack Wack and received from the husband of "my president" the BACK OFF ' 2 inches away from my nose.' But JDV III should not be entering into biz in the government because of his father being the Speaker of the House. In that case, I don't agree to award any biz deal to him. 2. The old man (ABALOS) is really brokering with ZTE on this deal. 3. Mister ni mam is also involved in this scam. 4. The annointed DOTC secretary of "my president" is a liar. He should step out and BACK OFF from this government, kung may delicadeza pa siya. (Kontrata nawala ???????) 5. Miriam and Juan Ponce tried to discredit the young JDV. My goodness !!!!!!!!! Ang tatanda na ninyo, di na kayo magtatagal sa mundong ito. Magsisi na kayo. Pabayaan na ninyo ang senado sa mga bata. Baka may mapulot pa kaming mabuti sa kanila. 6. I salute you, Mr. Pag Bad Ka, Lagot Ka. You are trying to give 'credible sermons' to your young comrades. Di mo masyadong ipinakikita ang pagiging malapit mo to "my president". Ipagpatuloy mo yan. 7. Aba may puntos si Gordon !!!! Bumira. Ayos lang. Sana ipagpatuloy mo yan. To all liars, especially those under the skirt of "my president", I am encouraging you (if you are Catholics) to go to the BLESSED SACRAMENT and tell HIM directly that you are not getting any portion of the pie. God Bless you Ernesto Concepcion, (by email), Sept. 21, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Frankly, I don't know what and whom to believe anymore when these sordid scandals blow up in the open. There's so many of them spoiling what little good news there is available that I'm convinced that the public is so fatigued and indifferent already. As far as the people are concerned these are just typical squabbles over spoils among the high and the mighty in business and politics. Every scandal is fresh fuel to throw at the never-ending knife fight between the pro- and anti-PGMA factions everywhere. And, of course, all these are over-amplified and over-embellished by the highly excitable media and PR groups on both sides of the fence. Bad news sells too well! I may not agree with everything you write but there are very, very few opinion writers whom I follow regularly. Have a good weekend. RR, [email protected], Sept. 22, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Dave Q has left a new comment on your post "A-B-Z-T-E-F-G": Under mounting pressure, the NBN deal has been suspended :) http://newsinfo.inquirer.net/inquirerheadlines/nation/view_article.php?article_id=90116 Oh what a circus! Regards, Tony. Dave Q, (by email), Sept. 23, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww What else is new in government officials? This is therirway of life! It is good that the media exposes this allegations. A deterrent perhaps to those who are planning monkey business. But these people allegedly involved has already surrendered their morals and their blood turned green. No one has the honesty to say yes, I am guilty. Please tell me, Sir, who is not corrupt or perceived not in government. We need revolution of mind individually. Why only ERAP, how about the previous Presidents? The current President? Ernie Dellosa, (by email), Sept. 23, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww (Forwarded to Tapatt by Gerry Kaimo) Mike Arroyo�s Trip to Europe By Ellen Tordesillas >From http://www.ellentordesillas.com/?p=1620 September 19, 2007 at 12:10 am Mike Arroyo's business in Europe <http://www.ellentordesillas.com/? p=1620> While Jose de Venecia III, son of House Speaker Jose de Venecia Jr., <http://newsinfo.inquirer.net/breakingnews/nation/view_article.php? article_id=89399> was telling the Senate and the Filipino nation that one day last March, in a function room in the Wack-Wack Golf clubhouse, that Mike Arroyo pointed a finger at him and ordered him to "back off" from the National Broadband project, Gloria Arroyo's husband was enroute to Venice, Italy. Accompanied by his cousin, Benito "Bomboy" Araneta, Mike Arroyo left Manila Monday afternoon for Hong Kong . <http://newsinfo.inquirer.net/breakingnews/nation/view_article.php? article_id=89107> In Venice , a source said Mike Arroyo will be met by a very close female friend whom we identified earlier in this space as "E", <http://www.ellentordesillas.com/?p=344>who is a Filipina carrying Swiss citizenship. "E" had gone ahead to Switzerland last week. Our source said Arroyo's party is billeted at Luna Hotel Baglioni in Sestiere di San Marco. They will be brought there by boat. An internet search showed that the Luna Hotel Baglioni, <http://europeforvisitors.com/venice/articles/luna-hotel-baglioni.htm> is one of the most elegant and luxurious hotels in Venice . It is said to be the oldest hotel in Venice . The Knights Templars are known to have stayed in a building on the Luna's site in 1118 during the Crusades. Arroyo and his party will be staying in Venice up to Friday. On Saturday, they will all go to Zurich , the banking capital of Switzerland . As we all know, Switzerland is where people keep their money whose origins they cannot explain. The source said Arroyo's good friend, Rey David, president of the Development Bank of the Philippines , will join Gloria's husband, his lady friend, and his cousin. They will be in Zurich up to Monday. After three days in Zurich , they will proceed to Munich , Germany where they will be joined by two more businessmen, who are known as Arroyo's cronies. The source said Mike Arroyo is expected to be back on Oct. 3 via Hong Kong again. From his itinerary, we get the impression that Mike Arroyo's European sojourn was not only to avoid a Senate summons. There must be something very important that he had to attend to that his banker friend had to be with him. Whatever Mike Arroyo's transactions are in Zurich and in Munich , they must be very important considering that it was only five months ago that he underwent a life-threatening operation. [Non-text portions of this message have been removed] wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww (Forwarded to Tapatt by Conrado Sanchez) FURTHER REMARKS ON THE NATIONAL BROADBAND PROJECT* By Emmanuel de Dios It was with some hesitation that I agreed to make a few remarks this morning. My views on the controversial National Broadband Project are, after all, nothing new, particularly since a working paper co-written with our former dean, Raul Fabella in late July became the subject of some media attention. (The interested reader is referred to the School of Economics website: http://www.econ.upd.edu.ph.) A good deal of the press coverage of this matter in recent weeks, however, has dwelt primarily on the possible corruption attending this project; the apparent involvement of some high government officials in influence-peddling; and the dubious legality of the entire process leading to the deal. These are certainly valid and compelling aspects of this whole controversy � and I too admit to being transfixed by the vaunted wonders of Shenzhen as described by Mr. Jarius Bondoc. I am, however, neither an expert nor an insider in these matters, being neither lawyer nor investigative journalist. But our position is somewhat different and amounts to this: even if the deal were consummated completely aboveboard, even if it passed all legal hurdles, and was free of corruption, we should still be opposed to it in principle, simply because it is bad policy. I shall simplify and state that the concern raised by Raul Fabella and myself in our paper really relates only two points: the first goes to the substance of the project; the second points to certain failures in the process by which it was arrived at. On substance The substantive issue is whether the country actually needs a fibre-optic backbone to begin with. As most of you probably know, what is known as a �backbone� in this context is really a network of fibre-optic cable covering land and sea, though at times using microwave, by means of which all kinds of data can be transmitted, whether this be a voice call through a fixed or cellular phone, a text message, an e-mail or internet message, or a TV signal. It is important to note that there are in fact, already two such functioning backbones1. One is owned by PLDT, the country�s dominant telecommunications company, while the other is effectively owned by PLDT�s competitors through Telicphil (Telecom Infrastructure Corporation of the Philippines ). These two backbones are what we actually use today when we make telephone or cell phone calls, send e-mail messages, use Yahoo messenger, Skype, or some other form of VOIP. Private telephone companies that utilise these backbone facilities have consistently upgraded them to accommodate more capacity. Telicphil�s National Digital Transmission Network, for example, has been upgraded and expanded at leas three times since 1999, the latest being in this year alone. On the other hand, PLDT�s Domestic Fibre Optic Network (DFON), was upgraded in 2004, partly in anticipation of 3G applications. In short, these two private networks do exist, they do function, and they have been maintained and been expanded. What then is the use of a third backbone, this time run by government? As in most aspects of this whole affair, the reason is not entirely clear even up to now. Some defenders of the project point to a need to �bridge the digital divide� between urban and rural areas. Still others, primarily, from the DOTC, talk about the need for a backbone dedicated to connecting government offices across the archipelago. Each of these represents a different rationale. Unfortunately, in neither case is a government provided backbone either necessary or sufficient to achieve the goal in question. If the point is to link rural to urban areas � a commendable objective � then a government backbone is hardly the answer. What is needed is not another backbone, but rather the means for rural areas to connect to the backbones or national networks that already exist. Why in the first place are rural areas deprived of access to broadband networks? Because they either have no computers, or a network connection to the backbone does not exist in their area. Clearly the solution here is to provide such accessories and connections to the backbone, not to duplicate the backbone itself. In the paper we compared digital backbones to high-speed expressways to which rural areas had no access. They have no access, either because there are no minor roads connecting these small communities to the highway (local networks), or the people themselves have no cars (e.g., computers and peripherals) to make use of highway. Surely in such circumstances the solution cannot be to build another expressway, but rather to make sure people have access to vehicles and to connecting roads. In short, it is ultimately the so-called �last mile� problem � i.e., the connection from an existing fibre-optic backbone to local communities � that prevents broadband access from becoming more widespread. In this respect, the example shown by one of this year�s Magsaysay Awardees is instructive. Mahabir Pun is a simple high school teacher in Nepal who succeeded in providing broadband services to remote and isolated highland villages, particularly schools and hospitals. This was done quite simply by laying out a wireless network that connected these villages with a private internet service provider in the nearest city. The answer as certainly not providing another backbone, much less one run by government. Despite its Spartan simplicity and modest cost, Pun�s approach has improved the lives of thousands without government assistance. The NBN project, on the other hand, would spend millions without any assurance that people�s lives will truly change. On the other hand, some justify the NBN project primarily as a government Intranet, that is, as a link among government offices themselves. Note here the rationale is no longer universal access, but rather some vaunted cost-saving and efficiency among government agencies themselves. The argument is that the project could allow government to save half of its current telephone expences, today totalling P3.7 billion annually. This is presumably because government agencies will henceforth migrate to using internet/intranet and voice-over internet protocols, But here, too, the project falls flat. It presumes government agencies will at one stroke somehow reduce their phone usage by half once the proposed government intranet becomes available (presumably using VOIP and the internet). One wonders however where the study determining this fact and its magnitude is to be found. We suggest this is highly unlikely for two reasons: first, the proposal asks us to believe that secretaries, undersecretaries, directors, and so on, will henceforth cheerfully get rid of their cellphones and henceforth communicate only via VOIP through their offices; and that public, their prospective clientele, will do the same. This is farfetched based on what even common observation shows us regarding the habits of bureaucrats. But secondly, it should be pointed out cheap communication via the internet is already possible among government offices even today. To the extent numerous government offices are already connected to the internet, they can in fact already replace phone calls with VOIP and e-mail. If they have not done so when they already have access to existing fibre-optic backbones, what makes one think they will do so simply because a government backbone has become available? Again the point is that access to a backbone is not the binding constraint but something else. Perhaps government offices even lack computers in general? Or perhaps they have no access to last-mile connectivity? Or are they insufficiently computer-literate? Or are government records not even digitised to permit quick and convenient electronic transmission from one government entity to another? (Many agencies, for example, still use fax machines rather than scanning documents and transmitting these via e-mail.) The point is that if none of these problems � if any of them are at all relevant � will be resolved by putting up a third fibre optic backbone. In turn that means that the much advertised savings are unlikely to occur. Surprisingly, even if the project lived up to its hype, the numbers would still make no sense. The purported savings from telecommunications expenses over 15 years is only some P28 billion, an amount even less than the value of the loan amortisation, interest, and operating expenses, which is in the order of P30-33 billion. In the meantime, there are more straightforward ways to reduce government telecommunications costs even absent a government-run backbone project: (a) digitise government records and providing electronic access to these (of course taking into account levels of security); (b) train government personnel in the effective use of computers through VOIP and e-mail; (c) provision of last-mile connectivity to remote areas, both for government and non-government users; and (d) consolidation of government�s telecommunications demand and the negotiation of favourable rates with private ISPs and telephone companies, using government�s bulk buyer status as leverage. The last substantive argument against the project is the government�s own dismal record at running infrastructure facilities, as can be seen in past fiascos such as the Napocor and the Metro Manila water system � both of which either have been or are slated for privatisation. The very inflexibility of government budgets makes it unlikely that a government digital backbone � if it were ever constructed � would be efficiently run, responsibly maintained, and diligently upgraded, and modernised to keep pace with changing technology and usage. Nor does this even factor in the almost inevitable corruption and entrenched interests that are likely to populate such a government creation. On process We disapprove of the project in principle, quite independently of the possible corruption that attended it. But this also means we do not support its implementation even as a BOT project, so that when we criticise loan-powered ZTE proposal, we do not necessarily endorse that of its competitors. We believe the government would be ill-advised to venture into this project in any form. More generally, however, this project highlights several disturbing trends in the government�s current infrastructure programme. First is the increasing impunity and lack of accountability of executive agencies. In view of how the business of Congress has degenerated into the petty division of spoils, no major infrastructure initiatives can be expected from it. For this reason, most significant infrastructure in recent years has come either through ODA or BOT. While this is admittedly an avenue that prevents undue congressional interference and the superfragmentation of projects, it on the other hand allows executive agencies wide discretion in concluding deals, which also opens the door to corruption. In the case of ODA projects, the stratagem of entering into �executive loan agreements� evades congressional scrutiny, even as it commits the country to repaying future loans. The non-standard Chinese practice of dispensing with any sort of bidding and simply assigning a project to a company of its choosing is a major factor that clouds transparency. The NBN is the second major project using this ruse; the first was the North Rail project. Owing to the lack of checks and balances at the administrative level, many of these projects will end up on the Supreme Court�s plate. On the other hand, BOT projects are not beyond reproach either. In particular those that come in the form of unsolicited proposals have rationales, technical specifications, and costs that are controlled entirely by their proponents. The one thing BOT implementation has over ODA is that in principle, taxpayers do not have to be involved. In practice, however, proponents have always found some way of entangling government in what ought to be purely private-sector risks (e.g., in the form of loan guarantees, take-or-pay provisions, foreign exchange risks, etc.). In national broadband proposal, for example, the BOT proponents want at the very least to tie down government to it as an �anchor� customer. During the time this lasts, this of course restricts the government choice of ICT provider and therefore may tie it to an inefficient or substandard provider. This leads to the second point: since obviously the explicitly political process has failed to function. and the technical details of the project are complex, the public interest is in most instances completely dependent on the performance and professionalism of government bureaucrats, Unfortunately, in recent years, people�s confidence in the objectivity and professionalism of the bureaucracy, their capacity to withstand underhanded political pressure, has not exactly been reinforced. The bureaucracy has allowed suboptimal projects to pass and not said a word. Part of this is intimidation, but part of it is also the government�s failure to allocate sufficient resources to make a complete study of its priorities. The NBN proposal, for example, resembles a moving target, therefore allowing all manner of vested interests to manipulate the terms to accommodate their favoured suppliers. Apart from the legality issue, therefore, we think the government bureaucracy itself has become increasingly unable to define priorities objectively and competently, which is the reason that policies and plans are often easily upset by transient vested interests and political pressures. Again the NBN project serves as a cautionary tale. There are therefore systemic reasons for the emergence of ill-conceived projects like the NBN. The scary part is that there is no effective mechanisms or checks built into the government itself to prevent it, which is why the matter has had to be dragged and slugged out in the media � and ultimately the courts. I dread the day that ordinary citizens and academics must spend most of their waking hours being on the look out for anomalous projects and ill-conceived, poorly motivated schemes. Government should not have to be this tedious. The NBN project became prominent and noticeable only owing to the egregiousness of its claims � fortunately � but I am realistic and I am certain other projects, though of a less blatant character but ill-advised and corrupt nonetheless, that are being hatched and escape our attention. I think the significance of objecting loudly and openly to the implementation of this project is a symbolic one: If the public cannot stop such an obviously wrongheaded scheme from being forced down their throats, then what can be stopped, what else is the public�s collective wisdom worth? As academics we would rather this scheme was defeated based on reasoned argument, policy debate, and past precedents. That would at least show we were thinking of a long-term, reforming our institutions and decision-making processes, and resolving never to commit the same mistake twice. On the other hand, one will also recall how Al Capone � a murderer, bootlegger, gambling lord, and extortionist � was ultimately nailed on a simple tax-evasion charge. And if the only way to stop this impending crime against the public interest it is to cite the corruption and sleaze attending it, then I would settle for that, too. Thank you and good day. *by Emmanuel S. de Dios, University of the Philippines School of Economics. Delivered before the national issues committee of the Management Association of the Philippines , 4 September 2007, Manila Golf and Country Club. 1 As a matter of fact, there are already two other backbones under government control, but which are unused, the French protocol backbone under the office of the press secretary, and that of the National Transmission Company (Transco). This only underscores the redundancy of the NBN project. wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww (Forwarded to Tapatt by Gerry Kaimo) Worries about Chinese Spyware Software On 9/22/07, Alan C. Robles <[email protected]> wrote: German news magazine Der Spiegel reported recently that computers in the German chancellery and the foreign, economic, and research ministries had been infected with Chinese spyware software, and German officials say they believe the hackers were linked to China's People's Liberation Army. (See China 's Premier 'Gravely Concerned' by Hack on Germany and China to Use Computer Viruses as Cyberwarfare First Strike.) The incident overshadowed German Chancellor Angela Merkel's state visit last week to Chinese Premier Wen Jiabao. But the ramifications could go far beyond international relations and even damage Chinese companies' prospects for IT and telecom contracts in the West, believes Dresdner Kleinwort analyst Per Lindberg. "The ability of Huawei and ZTE to participate in, let alone win, telecom infrastructure tenders in the Western hemisphere may have lessened considerably following last week's shock report," writes Lindberg in a research note issued Monday. "It could trigger a return to national security clearance when it comes to procurement of telecom networks," he adds. But Heavy Reading chief analyst Graham Finnie is cautious about the potential impact on the likes of Huawei and ZTE. He says the effect on Chinese vendors will depend on whether this incident is a "flash in the pan" or turns into something bigger. "There has always been an issue in the U.S. that these companies have links with the Chinese government. But it hasn't been quite so much of an issue in Europe ," says Finnie. "This is another stick that people can use to beat the Chinese suppliers with." "It clearly would not be in either company's interest to be seen to be working for the Chinese government," he adds. Both Huawei and ZTE have been gaining ground with Tier 1 contract wins in Europe and the U.S. this year. Huawei notably won HSDPA contracts with Vodafone Espa�a S.A. and Telecom Italia Mobile SpA ( Milan : TIM - message board). (See Huawei Wins in Germany , Huawei Wins Vodafone Deal, KPN Picks Huawei, Alltel Uses Huawei Card, Huawei Wins at TIM, ZTE Wins Sprint WiMax Deal, ZTE Wins 3G Deal, and Huawei Gets Vodafone Award.) But Dresdner says the spyware incident in Germany threatens to slow that momentum. "It could stifle China 's telecom export push, trigger urgent replacement of 'unwanted' equipment, and put an end to price dumping tactics," writes Lindberg in his research note. --- Michelle Donegan, European Editor, Light Reading OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO |