BY REGINA BENGCO

MALACAÑANG yesterday maintained that President Arroyo never admitted that the national broadband deal with China’s ZTE Corp was flawed.

Press Secretary Ignacio Bunye, in a statement, said what the President said in her interview with dzRH last Feb. 23 was that she moved quickly to cancel the deal when she found out that it was tainted with "impropriety."

(The interview frequently referred to the Tagalog word "katiwalian," which is commonly understood as another name for corruption.)

Bunye said it was "unreasonable" to conclude that the President was complicit in the wrongdoing because it has not been established in a "proper forum" if a crime was indeed committed.

"If the President decided to proceed with witnessing the signing, it was so as not to embarrass Chinese partners and the Chinese government itself, confident that government would do what was necessary to correct whatever infirmities there might have been," he said.

Bunye said it took about six months before the deal was canceled because the deal was between two friendly nations. The deal was cancelled by Arroyo in September last year.

The transcript of Arroyo’s interview with dzRH’s Joe Taruc on the ZTE deal last February 23 follows:

TARUC: Isa sa mga nasa isipan pa ng ating mga kababayan at ang pinag-uusapan ngayon tungkol doon sa broadband contract. Ano po ba talaga ang malinaw na nangyari dito? Ito po ba ay kinansela, sinuspinde o ano po ba ang talagang estado nito, Madam President?

PGMA: Alam mo Joe, talagang para sa akin, una sa lahat, hindi ko gusto ang katiwalian. Ang taumbayan galit sa katiwalian, ganoon din ako. Galit din ako sa katiwalian. Kaya itong proyektong ito, oras na may pag-uusap na may anomaliya ay agad-agad kong kinansel na, ah ano, agad-agad gumawa ako ng hakbang para kanselahin. Ang isa sa mga hakbang na ito ay kailangang kakausapin muna ang gobyerno ng China dahil sila naman ang ating pinakamalaking ah, pinakamalaking market ngayon sa export. So, at hindi lamang iyon, dinagdagan natin ang pondo ng Ombudsman para lalong mapalakas ang kanyang bantay kontra sa kurakot at direkto tayong kumilos diyan sa sinabi ko sa iyo na, yung tinanong mo sa akin pala na tiyakin na masusing subaybayan ang lahat ng ganoong proyekto ng mga mamamayang tumatanod para makasiguro na walang katiwaliang mangyayari.

TARUC: Ibig sabihin kanselado na iyong broadband project?

PGMA: Kanselado na yun matagal na. Oras nga na may sumbong sa akin, tinignan ko na yung paraan kung paano kanselahin. Nasumbong sa akin the night before the signing of the supply contract, pero hindi pa naman kasi but that was only one of many signings. So, e papano mo naman maka-kansel the night before meron kang ibang bansang kausap? Isang gabi. So tinuloy ang signing pero sa unang pagkakataon kinausap ko na agad yung pangulo ng China para sabihin sa kanya na kailangan kanselahin yung proyekto.

TARUC: Naunawaan naman nila?

PGMA: Sa umpisa hindi masyado, nagulat, pero sa pangalawang pag-uusap ko sinabi na naiintindihan niya at magkaibigan pa rin tayo kahit na kakanselahin yung proyekto.

POLITE PEOPLE

Trade Secretary Peter Favila said he had to assure Chinese Commerce Minister Bo Xilai that the problem was with the Philippine side, and not with the ZTE officials.

"Humingi ako ng paunawa at paumanhin at sabi ko kailangan talaga magpaliwanag ang gobyerno at bigyan lang kami ng supisyenteng panahon. So they were very supportive," he said.

But he said the allegations on anomalies grew and became more sensitive, which is why the deal had to be canceled.

He said he could not gauge whether the controversy has adversely affected the ties between the two countries. "The Chinese people are very polite people. They keep things to themselves," he added.