DEPUTY Executive Secretary Manny Gaite yesterday said the half a million pesos that he gave to ZTE star witness Rodolfo Noel Lozada while the latter was in Hong Kong was part of a P1.5-million "family fund" for the renovation of their house.

Of the amount, P500,000 was borrowed from his uncle in Ligao, Albay, putting up as collateral the real estate he inherited from his father.

Gaite said the rest of the amount, around P1 million, was pooled by his sisters-in-law. The money was to be used to renovate the house of his parents in-law in Sta. Maria, Bulacan, where his family is also staying.

Gaite, in his initial appearance at the Senate hearing, said the money came from his pocket.

He said he handed the money to Lozada’s brother, Owe, on Feb. 3, 2008 in a restaurant in Mandaluyong after receiving a text message from Lozada that he was "feeling the cold, no winter clothes and running out cash."

"I pitied him," he said.

He said he received the text message around 1:30 a.m. of February 3 and only decided to volunteer the amount shortly after 1:30 p.m. of the same day.

Gaite said it was his personal decision to give the money to Lozada whom he said he had met only twice, and that he never told Executive Secretary Eduardo Ermita and Secretary Romulo Neri about it.

But he said he informed Environment Secretary Jose Atienza Jr. of his action.

Sen. Alan Peter Cayetano expressed disbelief over Gaite’s testimony. "Parang fairy tale ‘yung sinasabi nyo sa akin," he told Gaite.

Sen. Manuel Roxas III was also unconvinced that Gaite was playing the role of a Good Samaritan.

Senate President Manuel Villar said Gaite will have a hard time convincing the Senate tri-committee that he was telling the truth.

Lozada confirmed he sought the help of Gaite but said this was after he was instructed by Atienza and Romulo Neri to course his request through the deputy executive secretary.

"I was told that I should also send the text to Manny Gaite. Secretary Atienza told me that Manny will take care of it," he said.

Lozada also said he informed Gaite that he was in Hong Kong as he has told his other friends.

"I was very clear to all my government friends na nasa Hong Kong ako," Lozada said.

Gaite had said he thought Lozada was in London to attend a conference. He left the day after the Senate had ordered his arrest for not attending a hearing.

Lozada said he did not consider the P500,000 as bribe but was certain it came from Malacañang and not from Gaite’s personal funds.

"My opinion, my impression is bigay ‘yun ng Malacañang," Lozada said in response to the query of Sen. Jinggoy Estrada.

Estrada and Sen. Jamby Madrigal also asked Gaite to furnish the committee his Statement of Asset and Liabilities.

Lozada refused to say if Gaite was telling the truth.

"I’m here as a resource person not as a judge," he said on a query of Sen. Ramon Revilla Jr.

TEXT MESSAGES

Sen. Juan Ponce Enrile said the exchange of text messages between Lozada and Gaite should be summoned from the service providers Smart and Globe, which was carried as a motion by the Senate joint committee.

Sen. Panfilo Lacson expressed reservations on the motion as he cited the security implication of authorizing Globe and Smart to retrieve text messages of their subscribers.

Lozada said his text messages from February 5 to 6 vanished and later resurfaced on his cell phone February 7.

He hinted that his mobile phone could have been hacked.

Lozada also said all electronically stored data are not 100 percent secured.

RELIGIOUS ROOTS

Before Gaite was called to the stand, Sen. Joker Arroyo, who is also from Ligao, Albay, praised him for having come from a very religious family with a priest as a brother and a nun as sister.

Arroyo also said Gaite worked with him when he was executive secretary to President Corazon Aquino.

Gaite also served under Fidel Ramos and Joseph Estrada as assistant secretary in the Presidential Management Staff and executive director of the Presidential Commission on Flagship Projects under Robert Aventajado. – Dennis Gadil