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corruption in the news
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A planned US $329 million deal to provide internet connection through broadband in the Philippines fell through amid allegations of bribery and graft connecting the president’s husband, Filipino government officials and the Chinese telecommunication company ZTE Corp., the Manila Times reports. |
Investigations into the allegations have plagued news headlines in the Phillipines.
On 1 October, Filipino elections chief Benjamin Abalos resigned, having been accused in Senate hearings of brokering the broadband contract with China's ZTE Corp. and of trying to bribe a Cabinet official and a Filipino businessman in connection with the deal. During the 26 September Senate hearing, former Socio-economics Secretary Romulo Neri claimed Abalos offered him US $4.4 million to endorse the Chinese company's bid, the Manila Times writes.
The broadband contract, originally signed in April 2007, was suspended by the Supreme Court on 22 September and, according to the Financial Times, President Gloria Macapagal Arroyo was forced to create a special panel to review all China-funded projects amid a political backlash.
ZTE Corporation has denied bribing or soliciting anyone in connection with the deal, the Business Mirror reports. The charges and counter-charges could hurt investors’ confidence to invest in the country, according to the Financial Times.
President Arroyo traveled to China on 2 October for a two day visit to meet with Chinese President Hu Jintao to boost trade and political ties amidst the unfolding scandal, the International Herald Tribune reveals.
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