In 2006, the government brought up the need for a national broadband network (NBN) and cyber-education project (CEP) that are said to be “state-initiated programs originally conceived to provide last-mile connectivity and interoperability to all government offices and all public schools, respectively.”

On April 2007 Department of Transportation and Communications secretary Leandro Mendoza and ZTE Corp. vice president Yu Yong entered into a $329.5 million contract for the said project.

DOTC announced that the contract was stolen in China a few hours after President Gloria Macapagal Arroyo witnessed its signing. The opposition raised eyebrows and hurled the administration with suspicion and accusations in the alleged irregularities of the broadband deal.

Months after, Nueva Vizcaya Representative Carlos Padilla revealed the scam surrounding the national broadband network deal between the government and ZTE Corp in his privilege speech (PDI, iNEWS, GMA News). He disclosed that COMELEC chairman Benjamin Abalos met with ZTE officials in China to broker the NBN project.

The controversy heightened when Jose de Venecia named Abalos of meeting with ZTE Corp. officials in China and First gentleman Mike Arroyo as the “mystery man”. He also alleged that the company won the contract without undergoing an honest-to-goodness bidding process.

The main issue revolving NBN deal is that it is overpriced mainly because of the alleged bribes and payoffs for certain government officials considered close to President Gloria Macapagal Arroyo.

The overpricing will eventually be shouldered by the Filipino people as it is the government who will pay the loan from China. Such project would just balloon the pockets of greedy officials which in return a burden to the Filipino people.

Other casts of the NBN deal appeared and played their major and supporting roles in the scandal. The brokers were first gentleman Jose Miguel Arroyo, Comelec chairman Benjamin Abalos. Former NEDA director Romulo Neri, DOTC assistant secretaries Lorenzo Formoso III and Elmer Soneja. Star witness Rodolfo Noel I Lozada Jr., president and CEO of Philippine First Corp. came out and pushed the investigation of the NBN deal deeper. Former ZTE Corp. consultant Dante Madriaga lately appeared to media who witnessed in the involvement in the NBN scandal.

Busby SEO Challenge strongly calls for an honest, efficient and effective governance!