ent broadband contract with a Chinese company, an official said Thursday, contradicting a claim by a businessman who lost the deal. Jose “Joey” de Venecia III, son of House Speaker Jose de Venecia, told a Senate investigation that Elections Commissioner Benjamin Abalos and Jose Miguel “Mike” Arroyo, the president’s husband, had tried to persuade him to abandon the deal.
“It was the first gentleman who told me to back off,” de Venecia, co-founder of Amsterdam Holdings (AHI) Inc., told the senators Tuesday, alleging that Arroyo shoved a finger to his face. He said President Gloria Macapagal Arroyo was not involved and may not have been aware of her husband’s “bullying.”
Transportation and Communications Secretary Leandro Mendoza said there was no occasion on which the president’s husband told de Venecia to back off.
Mendoza told senators Thursday that during a “chance encounter” between de Venecia and Mike Arroyo at a golf club, the president’s husband said it was “irregular” for the son of a high official to be involved in a government project.
He said he didn’t hear any shouting or see any finger-pointing, and that Mike Arroyo had “just walked away.”
Mike Arroyo, an attorney from a prominent family, has no official powers but is regarded as an influential back-room operator and a vocal backer of his wife against political rivals.
He left the country Monday for a “delayed vacation,” said his lawyer, Jesus Santos.
Santos said his client only reminded de Venecia that as the speaker’s son, he should not get involved in any government transaction.
Mendoza and other Cabinet members earlier refused to appear at the Senate in deference to a resolution of the case by the Supreme Court, which ordered a temporary halt to the US$330 million (euro239 million) contract with Zhong Xing Telecommunication Equipment (ZTE) Corp. amid allegations of bribery and overpricing.
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