BY DENNIS GADIL

SENATE President Manuel Villar yesterday warned President Arroyo against "honoring" the National Broadband Network (NBN) contract with Chinese firm ZTE Corp., saying it is tantamount to exonerating government officials and private individuals who packaged the overpriced project.

"Lalakas ang loob ng mga may kasalanan, dahil wala namang mapaparusahan," Villar said in a radio interview.

Arroyo on Thursday insisted that her government would have to honor contracts and agreements with foreign companies as long as they are legal.

Villar said he would rather have President Arroyo press charges against those behind the broadband deal, "let them rot in jail and then renegotiate the contract."

He said the country has already "dishonored" itself before the Chinese government when the supposed contract outlining the $329 million deal was reported missing after the signing. The contract was signed by Transportation Secretary Leandro Mendoza and ZTE vice president Yu Yong last April 21 in Boao, China in the presence of President Arroyo.

Villar said canceling the broadband contract and pinning down the erring government officials would be the most "honorable" thing to do than upholding a tainted agreement just to please Chinese investors.

He said President Arroyo seems to be making an exemption with the NBN-ZTE deal when she announced years ago that graft-ridden contracts and projects like the NAIA-Terminal 3 should be cancelled to put a stop to corruption.

The NAIA-Terminal 3 contract was awarded to a consortium led by the Philippine International Air Terminals Inc. (Piatco). It was voided by the Supreme Court which found it disadvantageous to the government.

Mendoza Thursday night dodged questions on the broadband deal invoking the "sub judice" rule which prohibits discussions on matters pending before the courts.

Mendoza appeared before the House committee on appropriations hearing the DOTC’s proposed P22.5 billion budget for 2008.

Rep. Rufus Rodriguez (Cagayan de Oro) was asking Mendoza about news reports quoting him as saying the contract exists but the DOTC secretary invoked the "sub judice" rule.

"I wish to give my full cooperation but I regret that I can’t with the above pending petitions before the Supreme Court," he said.

The high court Tuesday issued a TRO on the broadband contract.

The United Opposition said it will investigate the NBN deal and the P24.8 billion Cyber Education project of the Department of Education (DepEd) with China’s Tsing Hua University.

"We believe that these projects are tainted with anomalies. Joey de Venecia’s allegations against Elections chairman Benjamin Abalos that he was offered $10 million to back off from the NBN deal is very serious," UNO president and Makati Mayor Jejomar Binay said.

Binay said the "stonewalling" of government officials invited by the House of Representatives to shed light on the controversies only served to heighten their concern that the Arroyo administration is hiding something.

"If they have nothing to hide then they have nothing to fear from this probe," Binay said.

US Ambassador Kristie Kenney, in an interview, declined to give an assessment on the NBN deal, only reiterating her government’s position of transparency with regards to contracts.

"What we always encourage is transparency where you are looking at business dealings, so that dealings are conducted in open and transparent manner and they benefit all," she said after the Women’s National Electoral Assembly at the Philippine International Convention Center.