BY DENNIS GADIL

NBN-ZTE witness Rodolfo Noel Lozada Jr. surfaced at dawn yesterday and accused former Elections chair Benjamin Abalos Sr. of pushing for a national broadband project, which would earn him a hefty $130 million commission and in the process implicated Mike Arroyo, the President's husband.

Lozada is expected to reveal all he knows about the deal before the resumption of the Senate inquiry today.

In a press conference, where he was accompanied by Manila Auxiliary Bishop Broderick Pabillo and several nuns, at around 2 a.m. in La Salle Greenhills, Lozada said Abalos was pushing for the broadband project through a loan from China as against the build-operate-transfer (BOT) proposal of Jose "Joey" de Venecia III, son of former Speaker Jose de Venecia Jr.

Lozada said De Venecia's BOT proposal was "completely aboveboard."

He said he became aware of the First Gentleman's involvement in the deal when Abalos called up him through his mobile phone after it became clear that the project was meeting difficulties from the NEDA whose approval was needed.

"Chairman Abalos (said) halika tawagan natin si FG (First Gentleman). Tinawagan niya, 'pare nandito 'yung taga-NEDA (National Economic and Development Authority) katabi ko. Hindi daw pwedeng i-utang ang project ko," Lozada recalled overhearing Abalos.

Lozada admitted that he could not hear the voice on the other end.

Lozada said Abalos invited him to dinner with the presidential spouse in December 2006 at a restaurant in Makati Shangri-La hotel.

"Actually, FG did not say much, Chairman Abalos told him, 'pare okay na kami nina Joey, okay na kami sa NEDA.' Sabi niya (FG), 'A gano'n, buti naman okay na,'" he narrated.

Lozada said he found it "funny" to discover that part of the financial projections of Abalos' proposal was taken from an article in Abante Tonite tabloid.

"So, I told the Abalos group through their guy, Leo San Miguel, that they should revise their proposal, they should fix it," Lozada said.

He said then NEDA chair Romulo Neri brought him into the project to study and later reconcile the conflicting proposals of De Venecia and Abalos.

Lozada recalled meeting Abalos in a meeting with Neri in Wack Wack Golf Club late September or early October 2006 with his usual entourage of Ruben Reyes, Leo San Miguel and a ZTE representative.

The following month he was introduced by Neri to the young De Venecia.

Lozada said he even recommended Joey's BOT proposal to Neri.

But he said Neri asked him to reconcile the two proposals of Abalos and De Venecia.

Neri's original mandate was that the project should be undertaken through the BOT mode and that he should "moderate the greed" of the proponents, according to Lozada.

He recalled that Abalos even initially insisted on doing the project alone and through loans.

Lozada said he and Neri attended a meeting with ZTE representatives sometime in January 2007 wherein Abalos had an argument with the Chinese officials over the delay in the project.

He said ZTE representatives Yu Yong and Fan Yan even admitted to him earlier that they had given advances to Abalos.

WIN-WIN SOLUTION

"I proposed a structure for the two proponents where both of them can achieve both of their objectives. Since Joey (de Venecia) suggested we do a BOT (build-operate-transfer) and Chairman Abalos' objective was do a loan basis, so the project structure that I proposed was Joey's project becomes the lead contacting party to government because it's on a BOT basis anyway, and Abalos achieved his objective of supplying to Joey's project," he said.

He added: "So I thought at that point this was already a win-win situation for everyone involved. The government gets its NBN project, Joey gets his BOT project, and Ben Abalos gets his supply contract. So at that point I left them already to do their own thing. It's finished."

Lozada said "the trouble started when Chairman Abalos wanted to protect his $130 million commission on the project."

He added: "Dapat daw proteksyunan ang commission and agreed that Joey will become the main proponent. At that point I felt na being like a consultant to the project, that it might be a little too big. Sabi ko, 'bubukol po ito."

Lozada said Joey turned ballistic when he learned about the $130 million kickback being demanded by Abalos.

"He's worried where, san niya kukunin ang $130 million na ito. So sabi ko sa kanila hindi ko problema iyan," he said.

Lozada said he even told Abalos that a kickback could only be possible if it would be reduced by half or by 50 percent.

He said that when Abalos disagreed with his proposal, he left the former poll chief and De Venecia to discuss the project between them because he did not want to get involved.

He said that at the time the NBN deal was being planned, the price tag was $262 million but it ballooned to $329 million after it was approved by President Arroyo.

Lozada also admitted being threatened by Abalos when he was in Dumaguete, sometime January 18, 2007, or after he quit the project as NEDA consultant.

"Chairman Abalos called me up, it was some like early evening. And then he started cursing me, mura siya ng mura in Tagalog, lahat-lahat. Ang ano niya nandito sa akin ang CD ng lahat ng phone conversation nyo ni Joey. Mga hayop kayo tinatraydor ninyo ako. . Then Chairman Abalos ended up his tirade with me with his words na 'huwag na huwag kang magpapakita sa akin sa Wack-Wack o sa Mandaluyong at ipapapatay kita," he said.

He said Abalos also bragged about his closeness to the military and the intelligence community.

Lozada went missing last Tuesday as police personnel fetched him at the NAIA while a Senate arresting team was waiting for him at the dignitaries lounge.

The police have said Lozada requested for protection.

During the early dawn press conference, Lozada denied that he and his family asked for it.

Lozada also said he now considers himself resigned from the Philippine Forest Corp, where he is president and CEO, after going through the press conference.

"I like my job but after what I did now, I guess it's just right for me to put on record that I am now resigning from my government position as president and CEO of the Philippine Forest Corp.," he said.

At around 4 a.m. Lozada was fetched by members of the Office of the Senate Sergeant-at-Arms (OSAA) and brought to the Senate.

Lozada's eyes were puffy from fatigue and lack of sleep when he arrived at the Senate premises.

At the office of Sen. Alan Peter Cayetano, Lozada recalled his ordeal last Tuesday.

MISCOMMUNICATION

"I was taken from the airport. I guess there was some miscommunication because I did not know I was to be taken from the (airplane) tube. I was not prepared for that, from there I did not know yet the group who took me from the tube," he said.

He said he texted his brother who was at the arrival area that unidentified men had taken him.

Lozada said he was taken outside the airport and taken for a ride around Laguna.

He said it was around Tuesday evening while they were still cruising in Laguna that he became fearful for his life.

He said the growing noise created by the media toward the evening probably forced his police escorts to bring him back to Manila.

Lozada said before he was taken to La Salle Greenhills, some "nice people" made him sign an affidavit and a supposed hand-written letter by him requesting police security after his arrival from Hong Kong.

Lozada said he was only "released" in the custody of the La Salle brothers and sisters after he signed some documents.

He said he regretted signing the documents, one of which said he did not talk to other government officials regarding the NBN-ZTE project.

Lozada said he left Jan. 30 not on an official mission in London but for Hong Kong where he said he transferred from one place to another "because some people recognize me."

Lozada said he insisted on coming back because he didn't want to hide anymore.

Asked if he has evidence to prove that Abalos had taken cash advances from ZTE, Lozada said: "Yung pulis sa kanto, wala namang resibo kapag nangongotong."

He said he respects Neri's silence on the issue.

He said he was not sure if he could stand the rigors he expects at the hearing today. "To be honest, I don't know if I'm ready."

'TELL THE TRUTH'

Archbishop Angel Lagdameo, president of the Catholic Bishops Conference of the Philippines (CBCP), urged Lozada to tell everything he knows about the ZTE deal.

"He (Lozada) must tell the truth and nothing but the truth. If we are looking for the truth, you must tell all that you know about the deal," said the Jaro prelate.

"We should have the social conscience. that common good should be above personal interests," Lagdameo said.

Solidarity Philippines said it joins the Filipino people in praying that Lozada will not compromise the truth.

"His testimonies have so far pointed to the hand of (Benjamin) Abalos in the ZTE scam. We pray that he will have the courage to tell all on what he knows about the hand of First Gentleman Mike Arroyo and President Gloria Macapagal Arroyo in this deal," the group said.

The Church-based group lauded Lozada for his bravery in revealing his knowledge on the irregularities in the project despite having received numerous death threats.

Pabillo said his help was sought by Lozada in order to ensure his security and have "an ear to listen".

The prelate said he was glad that the Church's help was sought as it symbolizes the faith of Filipinos.

He said he believes that Lozada is really serious in his decision to tell everything he knows about the project.

Bishop Deogracias Iñiguez, CBCP Public Affairs Committee head, said that in the event that the pronouncements of Lozada are proven true, it is one scandal that would damage not only government officials but also the country.

BLATANT CONSPIRACY

The Bagong Alyansang Makabayan (Bayan) called for the resignation of President Arroyo and Razon for the "blatant conspiracy" to silence Lozada.

Bayan secretary general Renato M. Reyes, Jr., said the attempt to stifle Lozada from speaking against the broadband deal is proof that corruption is rampant in the Arroyo administration.

"We are witnessing one of the most outrageous attempts of the Arroyo regime to cover up the truth about its corruption. Malacañang and the Philippine National Police conspired to abduct Lozada and silence him by making him sign manufactured documents. This is another low point for an already discredited administration," Reyes said.

Senators asked President Arroyo to either resign or take a leave of absence.

Sen. Panfilo Lacson said Arroyo should leave Malacañang and call for a snap elections to prevent destabilization efforts or an unconstitutional takeover by some interest groups.

"If there's any more moral fiber left in GMA's (Arroyo's initial) body, she should resign now and allow the Filipino people to express their choice via a fresh mandate," he said in a text message.

Sen. Alan Peter Cayetano said the President should take a leave of absence,

He said Razon should also take a leave of absence while the Senate is trying to find out the truth about the alleged abduction of Lozada.

"Let the vice president sit for a while, appoint an officer-in-charge in the Philippine National Police so that this (Senate) investigation can be conducted truthfully," he added.

He reminded Bunye to do his job and not meddle with the affairs of the Senate.

"I remind Secretary Bunye, who said na hindi makapaghintay, unang una I am not calling for snap elections. Pangalawa, pag leave of absence, kung hindi ka guilty, makakabalik ka pa. Baka guilty kaya iniisip nila hindi makabalik dahil mali yung statement nila," he said.

Cayetano said two more witnesses are willing to come out in the open but are fearful for their lives.

Cayetano has also invited Neri to join Lozada and testify about the NBN deal.

NEDA MEETING

Sen. Mar Roxas II challenged Malacañang to present to the Senate the minutes of the NEDA meetings on the NBN project, which would either verify or disprove witnesses' claims that the deal was anomalous and overpriced.

"If the Palace is saying technical consultant Jun Lozada and other witnesses are liars, why hide the documents beneath the cloak of executive privilege?" asked Roxas, co-chair of the Senate joint panel investigating the ZTE deal.

"Ito ang pattern: hiningi ng Senado ang mga dokumento ng NEDA, ayaw nilang ibigay. Executive privilege daw. Inimbita ng Senado si Jun Lozada, dinukot naman nila. For his safety daw. Baluktot na pamamaraan pero ipinipilit na tama. Mamang Pulis, ano ba talaga ang totoo? Bakit ninyo kinuha si Jun at inilibot sa Laguna nang hindi alam ng kanyang pamilya? Sino nag-utos nito at bakit ninyo sinunod kahit alam ninyong kayo mismo ay lumalabag sa batas?" Roxas said.

Roxas and Sen. Benigno "Noynoy" Aquino III thus filed with the Supreme Court on October 26 a petition to clarify the bounds of executive privilege and whether it was applicable to the national broadband deal situation.

Sen. Pia Cayetano also urged President Arroyo to take responsibility for the irregularities surrounding the NBN deal in light of the revelations of Lozada.

"It's time for President Arroyo herself to show some sense of responsibility by explaining before the public what she knows about this deal."

"The point here is this, we have a witness, and he wants to tell a story. Why not let him tell the story, then you judge from there," she said. -With Gerard Naval, Job Realubit, Anthony Ian Cruz and JP Lopez