World | Philippines

Ally accuses Arroyo of bribing officials

A former ally of Philippine President Gloria Arroyo linked her husband to a $329 million telecommunications kickback scandal on Monday and said Arroyo was aware of his involvement.

  • Agencies
  • Published: 23:35 November 24, 2008
  • Gulf News

Manila: A former ally of Philippine President Gloria Arroyo linked her husband to a $329 million telecommunications kickback scandal on Monday and said Arroyo was aware of his involvement.

Jose de Venecia Jr, a congressman and former speaker of the lower house of Congress, also told the legislature that Arroyo bribed lawmakers and local government officials in 2007 to protect herself from an impeachment complaint over the scandal.

De Venecia said the president gifted 500,000 pesos (about $10,000) each to lawmakers and local government executives last year to buy their loyalty to defeat the last impeachment move.

The allegations of kickbacks in the telecoms contract awarded to China's ZTE Corp are not new, but it was the first time that they were spelled out by de Venecia, who said he was present during a meeting in Shenzhen, China, attended by the president, her husband and senior ZTE officials.

Arroyo scrapped the deal with ZTE Corp in October 2007 but she has denied that she or her family benefited from the contract. Until last year, de Venecia also said he did not believe she or her husband were involved.

But this year he has endorsed the complaint to impeach her on a host of charges, including corruption. It is the fourth such complaint against Arroyo in the last four years.

All the previous complaints have been rejected.

De Venecia was testifying at the televised hearing of the latest impeachment complaint at the House of Representatives, which is also most likely to be rejected by a legislature packed with Arroyo loyalists. Arroyo is not likely to be affected.

Alongside her domination of Congress, she is supported by the army and the powerful Catholic church. Also, her term in office lasts until 2010 and she is not eligible to seek re-election.

Analysts have said political heavyweights are unlikely to join any bid to have her removed by impeachment, preferring to conserve their energies for the 2010 election campaign.

De Venecia was a close ally of Arroyo until he fell out with her late last year when his son alleged rigging of the contract awarded to ZTE Corp for building a broadband network for state agencies in the Philippines.

De Venecia's son was also bidding for the contract but has said he was pushed out because of the rigging.

The elder de Venecia was later removed from the speaker's post and lost the presidency of the country's dominant political party, Lakas Christian-Muslim Democrats.

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