NBN: The NEDA's benefits and costs and where they hid the 'smoking gun'

In the wee small hours of morning one Sunday (September 30) I chanced upon DOTC secretary Leandro Mendoza on DZMM’s teleradyo, close to faking an O (whether an Oh or an Ouch depends on your particular perversity) over his defense of the NBN deal, as if it was his first chance to do so. I don’t know how many other insomniacs caught his convoluted arguments, but the few who did were probably moved to swearing off on some nocturnal pleasures.

The friendly anchor asked him why he didn’t explain the benefits during the Senate hearings. He replied that Asec. Lorenzo Formoso was more technically competent to explain those. I’ve read Formoso’s tables and these didn’t explain how he extrapolated the baseline specs and costs of ZTE to come out with comparable figures for AHI and Arescom, nor identify the strange alchemy he resorted to make lemons into apples.

I have since then been able to look at the NEDA evaluation report (March 29, 2009) and the ICC-NEDA cabinet committtee minutes (March 26,2007). In the meeting Romulo Neri and even the finance department representatives raised relevant points which should have taken the ICC secretariat and the NEDA’s infrastructure staff months to address. But note that the final ICC approval was issued April 20. If these do not a constitute a ‘smoking gun’ to you, I can only surmise that you’ve never fired one.

In the ICC cabinet committee meeting, Neri asked the secretariat to clarify how savings could be reckoned from the abandonment of old and unserviceable equipment maintained by the DOTC. A very valid point which I examined in the infrastructure staff’s report.

If you had an old car on the brink of being unserviceable, junking it, even before you decide to buy a new one, is the rational thing to do. Yet, in the report of the infrastructure staff, ‘savings’ from deciding to stop maintaining that car were counted as part of the benefits of the NBN. As Mar Roxas would probably say, Stunning! Indeed.

In the meeting, Neri was also skeptical about the savings from the national and local government’s telecommunication expenses, and Senator Roxas was correct to raise doubts about these during the hearings. In fact, it is difficult to explain how his staff could have explained these to Neri in such a short time. It is obvious that they were just forced to accept the unverified figures from the DOTC.

I of course know that the sudden and long gap in the hearings have led to so many conspiracy theories, victimizing the bible-quoting chair of the blue-ribbon committee and the real estate agent who happens to be president of the smaller chamber. Also, Neri’s invocation of executive privilege has led to Jarius Bondoc’s invocation of his right to invoke moral choice as a citizen.

But Bondoc’s revelations may not really have that much force. As Yawyaw, my three-year-old neighbor would say, that’s all Hershey, and while delicious, not admissible in court. What should be admissible in all courts, legal and popular, are the documents and what these imply.

Last Friday, the UP School of Economics organized a forum featuring past NEDA directors general. I wasn't there so I was not able to say my piece. I would have pointed out that even during the time of FVR, the NEDA's evaluations were trumped by Malacanang's judgements, especially in regard to some power projects.