Lozada's role in other anomalies bared in ZTE trial

MANILA, Philippines -  Lawyers of former elections chairman Benjamin Abalos bared in court yesterday the involvement of whistleblower Rodolfo Lozada in allegedly anomalous government contracts in the past.

Abalos is on trial for allegedly brokering for Chinese firm ZTE Corp. in the $329-million national broadband network (NBN) deal in exchange for commissions.

Defense counsel Gabriel Villareal questioned Lozada about a pending case against him in connection with an anomalous P14-million transaction involving the company he headed from 2006 to 2008.

Lozada said he “cannot recall” the case, but later conceded when he was shown documentary evidence presented at the Senate.

The transaction involved a P19-million allocation for an economic productivity program for a plantation project.

During the Senate hearings, it was revealed that P5 million was actually used and P14 million was set aside for the brother of then National Economic and Development Authority director-general Romulo Neri.

Lozada worked as technical adviser of Neri at the time the $329-million national broadband network deal was being negotiated.

During cross-examination, Justice Gregory Ong, Sandiganbayan Fourth Division chairman, ordered Prosecutor Irineo Paldeng to state the basis for his objections instead of giving a lengthy explanation.

“This is an intelligent witness who can get clues from your statements,” he said.

Ong instructed Lozada to listen carefully and simply answer the questions rather than respond with explanations or statements.

Lozada said he “could not recall” an incident involving the alleged P70-million overprice in the Southrail project.

Paldeng objected to the answer for being irrelevant to the graft case against Abalos.

However, Villareal said past transactions also involving Lozada were important in giving a picture of his credibility.

Sandiganbayan justices also questioned Lozada on why he and Neri authorized the $65-million overprice. He said the amount was “within permissible zone of morality.”

“We were still saving money,” he said.

At this point, Associate Justice Jose Hernandez asked Lozada whether it is “okay to steal as long as money is saved.”

Lozada replied: “Money will be stolen anyway. We (referring to himself and Neri) cannot do anything about it.”

Defense lawyers started cross-examining Lozada on Monday.

Lozada gave evasive and at times sarcastic answers, which the anti-graft court took note of.

Lozada is being considered a key witness of the prosecution in the graft case against Abalos.