Making sense of the broadband deal
The administration seems to be backtrack-ing on the $329 national broadband deal. Some more pressure from the public and we would not be surprised Gloria Arroyo would appear on nationwide television one of these days to announce the project had been cancelled.The people who packaged the deal are now facing the real possibility of being haled before the Sandiganbayan on plunder charges. Perhaps not during Gloria’s time. But in three years, it’s a near certainty that whoever would run on a platform of good governance would have the inner track to Malacañang. "Ikulong ang mga magnanakaw!" would be an unbeatable campaign slogan.
Now we’re hearing from Budget Secretary Rolando Andaya that the $329 million thievery is not yet a done deal. No loan agreement has been signed with the Chinese Export-Import Bank. Why, Andaya said, the project is not even included in the proposed 2008 budget.
So why did Transport Secretary Leandro Mendoza keep on saying the deal was good as done? That the National Economic and Development Authority has vetted the project. And the paper work is all that needs to be done. Trade Secretary Peter Favila was also quoted as saying during the Asean economic ministers meeting here that the Chinese foreign minister had signed a credit accommodation for $1.3 billion, within which the $329 million for the broadband project would be accommodated.
How do we explain the seemingly conflicting statements?
We tend to believe Mendoza’s explanation. The project has secured an imprimatur from the highest level, that is, Gloria. That’s all that’s needed. Everything else is mere procedural requirements.
There are two main hurdles remaining. First is the actual signing of the contract. Second is the Monetary Board approval of the loan to be secured from the Chinese Eximbank. The two hurdles can be cleared in a week after Gloria says "go."
The deal is not being pushed now because of the ongoing controversy. Election Chairman Benjamin Abalos has been tagged as the Chinese proponents’ "padrino." The quid pro quo is assumed to be Abalos’ "cooperation" in last year’s elections and continuing silence over the "Hello Garci" tapes.
The Palace is watching how the storm plays out. If this attempted thievery does not trigger widespread outrage, then the deal will push through. If this scandal threatens the continued stay in power of Gloria or her precious liberty after her exit, then this deal will be scuttled.
Which way would it be? We’ll know soon enough. We have gone out of the business of speculating, however well-reasoned, when it comes to this administration. There is no rationality in decision-making. It seems every decision now depends on which side of the bed Arroyo wakes up on any given morning.
