Philippine National Broadband Network controversy

The Philippine National Broadband Network controversy (also referred to as the NBN–ZTE deal or NBN–ZTE mess) involved allegations of corruption in the awarding of a US$329 million construction contract to Chinese telecommunications firm ZTE for the proposed government-managed National Broadband Network (NBN).

The contract with ZTE was signed on April 20, 2007 in Hainan, China. Following the emergence of irregularities, President Gloria Macapagal-Arroyo cancelled the National Broadband Network project in October 2007. On July 14, 2008, the Supreme Court dismissed all three petitions questioning the constitutionality of the national broadband deal, saying the petitions became moot when the project was cancelled.

In April 2007, Philippine Department of Transportation and Communications (DOTC) Secretary Leandro Mendoza and ZTE Vice President Yu Yong entered into a US$329.5 million contract for a National Broadband Network (NBN) that would improve government communications capabilities.

On August 29, Nueva Vizcaya Congressman Carlos Padilla hinted in a privilege speech that Commission on Elections (COMELEC) Chairman Benjamin Abalos went to China to broker a deal for the NBN project. The following day, Abalos denied brokering for the NBN project, although he did admit going to China four times.

On September 5, Senator Aquilino Pimentel called for a Senate investigation about the NBN project. As a result, three committees held joint hearings about the issue: the Accountability of Public Officers & Investigations (aka the Blue Ribbon Committee) headed by Alan Peter Cayetano, the National Defense and Security committee headed by Rodolfo Biazon and the Trade and Commerce committee headed by Mar Roxas.

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Wikipedia