Philippine president suspends China telecom deal

Philippine President Gloria Arroyo has suspended a controversial 330-million-dollar national broadband project with China, the Trade and Investment secretary said Saturday.

MANILA: Philippine President Gloria Arroyo has suspended a controversial 330-million-dollar national broadband project with China, the Trade and Investment secretary said Saturday.
Peter Favila made the announcement during an interview on local radio. "I think this is the best thing to do now," he said. Favila said Arroyo did not give her reasons for the suspension, commenting "that is her executive privilege."
The announcement came after a week of allegations in the media and before a Senate inquiry of supposed government incompetence, corruption and the involvement of Arroyo's husband, businessman and lawyer Jose Miguel Arroyo, in the deal.
The project with the state-owned Chinese company ZTE Corp was to have set up a national broadband network for the exclusive use of the government and all its agencies.
The Philippine Supreme Court earlier this month issued a temporary restraining order preventing the government from going ahead with the project.
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