NOY'S ZTE-BROADBAND NEW DEAL IN THE WORKS / DOTC DEAL ASSAILED
[PHOTO - Senate President Pro Tempore Jinggoy Estrada as he geared up for the filing of a resolution to effect an inquiry in the upper chamber into the P4-billion contract the Aquino government has awarded to a foreign consortium in modernizing the country's aerospace communications and navigations system.]
MANILA, JANUARY 19, 2011 (TRIBUNE) By Angie M. Rosales - President Arroyo was bogged down by the now infamous and overpriced ZTE-National Broadband Network deal (NBN), under an agreement formed with the Chinese firm, ZTE.
But from initial indications, President Aquino and his administration are not too far away from coming up with a grossly overpriced ZTE-NBN ll deal.
Thus was the concern aired yesterday by Senate President Jinggoy Estrada as he geared up for the filing of a resolution to effect an inquiry in the upper chamber into the P4-billion contract the Aquino government has awarded to a foreign consortium in modernizing the country's aerospace communications and navigations system.
Estrada's apprehension over the sealing of the deal recently was due to reports that the company, Thales Group of France, has a reported trail of bad records, the most serious of which was the allegedly defective speed sensors for an Airbus commercial jet that crashed in the Atlantic in 2009, killing all 288 passengers on board.
The senator also noted reports on the purported involvement of Thales in bribery in order for the same company to gain business deals with its foreign clients.
"There is more to this deal than meets the eye and for the sake of President Aquino's call for transparency and the elimination of graft and corruption in government transactions, the people have the right to know if, indeed, due diligence was conducted by the DoTC (Department of Transportation and Communications) headed by Aquino appointee, Jose "Ping" de Jesus, prior to the project's awarding to Sumitomo of Japan and the Thales Group of France.
"There is a need to remove all doubts and clear the air of suspicion about this deal because not only billions in taxpayers' money are involve here but also innocent lives," he said.
The Senate leader was referring to the Sumitomo/Thales joint venture contract with the DoTC worth nine billion yen or approximately P4 billion for the nationwide modernization of the country's communications, navigation surveillance and air traffic management (CNS/ATM) systems and facilities.
The said project would be financed through the nine billion yen loan package from the Japan International Cooperation Agency (JICA).
Reminiscent of another deal that the DoTC entered into and was supposed to be financed from a loan from China in 2007, the $328 million national broadband network (NBN) controversy, Estrada said he will call for an investigation into this latest government undertaking, possibly to be conducted by the blue ribbon committee headed by Sen. Teofisto "TG" Guingona..
Under the said contract, Thales would be the technology partner of Sumitomo for the installation of a modern CNS/ATM system at the country's international airport.
In its website, www.thalesgroup.com, the company boasts of having built an expertise in sophisticated technologies and large-scale software systems and is a leader in mission-critical information systems for defense and security, aerospace and transportation.
Estrada, in an interview, said he had already ordered a review of the contract while in the process of drafting the resolution calling for an investigation.
"I wonder if indeed, as (DoTC) Secretary Ping de Jesus claimed, he has thoroughly investigated the record of Thales or if he has taken into consideration the lessons learned from the NBN scandal before agreeing to award the contract to this company," he said.
"This may be another 'NBN scandal' in the making at the DoTC," he warned.
Among other issues against Thales raised by the senator was the ban imposed by the European Aviation Safety Agency in 2009 on the use of the company's speed sensors for the Airbus commercial jets after air crash investigators concluded it was the fatal reason for the crash of an Air France Airbus A330 in the Atlantic on June 1, 2009, where all 288 passengers on board were killed.
"Then there was an article from the AFX news wire service in 2005 stating that the French police raided Thales' headquarters that December after one of its own officials accused the company of 'organizing a centralized slush fund to bribe and corrupt officials to win contracts,'" he disclosed further.
In the Philippines, Estrada also noted that Thales had reneged on its obligation to deliver P1 billion worth of 19 "global marine distress safety system" (GMDSS) to improve the safety of sea travel in the country.
This reportedly forced the Commission on Audit (CoA) to subsequently recommend that the firm be banned from further doing business with the government.
"Against such known facts, why did the DoTC, even under the new administration, see it fit to turn a blind eye on this company's performance and continued awarding it with fat contracts," Estrada pointed out.
"Is this latest deal with Thales-Sumitomo the kind of example of the 'tuwid na landas' that President Noynoy Aquino said he would pursue when he was campaigning for the presidency?" the senator asked further, adding: "We will soon get to the bottom of this mess."
FROM MALAYA BUSINESS INSIGHTS
DOTC deal with French firm assailed BY JP LOPEZ
SENATE President Pro-tempore Jinggoy Ejercito Estrada yesterday questioned the P4-billion contract to modernize the air traffic control system with a foreign consortium which he said has a "trail of bad records."
"For the sake of President Noynoy Aquino's call for transparency and the elimination of graft and corruption in government transactions, the people have the right to know if indeed, due diligence was conducted by the DOTC prior to the project's awarding to Sumitomo of Japan and the Thales Group of France," Estrada said.
"I wonder if indeed, as Secretary (Jose) Ping de Jesus claimed, he has thoroughly investigated the record of Thales or if he has taken into consideration the lessons learned from the NBN scandal before agreeing to award the contract to this company," he said.
Estrada noted that Thales, a global electronics company which caters to the aerospace, defense and security markets has a "trail of bad records."
Thales is the technology partner of Sumitomo for the installation of a modern communication, navigation surveillance and air traffic management (CNS/ATM) system at the country's international airport.
The CNS/ATM project will be financed by a 9 billion yen loan package (roughly P4 billion) from the Japan International Cooperation Agency (JICA).
The botched NBN-ZTE broadband project in 2007 was to be financed by a loan from China.
Estrada noted that the European Aviation Safety Agency in 2009 decided to ban the use of Thales' speed sensors for the Airbus commercial jets after investigators concluded it was the cause of the crash of an Air France Airbus A330 in the Atlantic on June 1, 2009, where all 288 passengers died.
In the Philippines, Estrada noted that Thales had reneged on its obligation to deliver P1 billion worth of 19 "global marine distress safety system" to improve the safety of sea travel in the country. This reportedly forced the Commission on Audit to subsequently recommend that the firm be banned from further doing business with the government.
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