Another China contract missing

Philippine Daily Inquirer
First Posted 23:19:00 03/05/2008


MANILA, Philippines -- Another China-funded government contract has been reported lost and Senator Maria Ana Consuelo "Jamby" Madrigal is fuming.

In a press conference on Wednesday, Madrigal denounced the Philippine National Railways Corporation's claim that it could not find an agreement it signed on April 27, 2005 with China National Technical Import -Export Cooperation for the $932 million South Railway project.

The opposition senator charged that this was a "cover-up similar to the NBN-ZTE deal."

Government officials had also claimed the agreement with ZTE Corp. of China for the $329 million National Broadband Network project had been lost, or stolen.

In his reply to Madrigal's request, PNR General Manager Jose Ma. I. Sarasola II said: "We respectfully inform you that based on available records so far, we do not have such document. We shall continue, however, to go over files and should we find one, we will provide your office a copy."

Madrigal said this was a "flimsy excuse that I find hard to believe."

"I hope this is not a deliberate attempt to cover up ala-ZTE," said Madrigal, who filed Senate Resolution 316 seeking to censure Sarasola for hiding the project and compelling PNR to produce the document.

"Either our government is bad or stupid. How can you have a contract with China and each time we look for it, it gets lost."

Four senators are urging the blue ribbon committee to look into allegations by NBN star witness Rodolfo Lozada Jr. that the Southrail project had been overpriced by at least 22 percent or between $70 million and $180 million. Gil Cabacungan Jr.