ZTE in bed with GMA?

Is ZTE in bed with GMA? That’s the question on many people’s mind as the Philippines is dealing with a new corruption allegation against the incumbent administration in the Philippines. It seems that a contract for a government broadband network has been signed for a lot more than other bids and then the contract has gone missing.

The government will be compelled to defend the contract in front of both the Supreme Court and the Office of the Ombudsman. Controversy over the contract occurred after it emerged that two lower bids weren’t properly considered and that the actual copy of the original contract had gone missing.

Furthermore:

* ZTE defended the deal, telling the Manila Standard, “We have been quiet because we know these are all baseless accusations.”
* Finance Secretary Margarito Teves said he met with ZTE executives twice – one instance last year at his residence in Ayala Alabang, the other only a few months ago at the Wack Wack Golf Club in Mandaluyong City.
* An unnamed businessman is willing to testify before any investigation that Commission on Elections Chair Benjamin Abalos Sr. offered a rival firm of ZTE $US10 million to withdraw from the national broadband network tender.

This doesn’t bode very well for the government and also severely affects investor sentiment in the Philippines.