MANILA (UPDATE)— The Supreme Court has barred former government official Romulo Neri from holding public office after it found him guilty of grave misconduct for brokering the controversial NBN-ZTE deal in 2007.

Neri served as director general of the National Economic and Development Authority (NEDA) from 2006 to 2007 during the term of former President Gloria Macapagal-Arroyo.

In a decision promulgated July 5, 2021 but uploaded on the Supreme Court website only on Thursday, the SC Third Division dismissed Neri from service, cancelled his eligibility, forfeited his leave credits and retirement benefits and perpetually disqualified him from reemployment in government service.

The SC ruling perpetually barring Romulo Neri from public office was an administrative case for grave misconduct. In 2016, the Sandiganbayan cleared him of criminal graft charges.

“Petitioner actively brokered for ZTE's bid by using his public position despite knowing the corruption involved in the project,” the High Court said in a 19-page decision.

SC perpetually disqualifies ex-NEDA chief Romulo Neri from holding public office after finding him guilty of grave misconduct because he "actively brokered" for ZTE's bid in connection with the controversial NBN-ZTE deal during ex-Pres. Gloria Macapagal-Arroyo's time. pic.twitter.com/3Q5Sc0CE77

— Mike Navallo (@mikenavallo) November 12, 2021

Neri had testified in a Senate hearing that then Comelec chair Benjamin Abalos bribed him P200 million to approve the national broadband network deal with Chinese company Zing Xing Telecommunications Equipment (ZTE), who submitted a proposal to put up a national broadband network that would link all government agencies and offices.

But ZTE’s proposal required a loan between the Philippines and China while a competing bid from Amsterdam Holdings, Inc. (AHI) did not. AHI’s proposal also offered a lower communication expense proposal.

AHI’s owner Jose De Venecia III told the Senate Abalos had offered him $10 million to withdraw AHI’s bid or enter into a partnership with ZTE. Both did not push through.

• Re: Romulo Neri is not the kind of person to be a government official
• Romulo Neri cleared in NBN-ZTE graft case

De Venecia claimed Abalos hurled invectives and death threats at him.

He also claimed that ZTE’s bid was overpriced by $132 million.

The supposed bribe offer from Abalos, according to Neri, happened while they were playing golf.

He also admitted to dining with ZTE officials.

Neri said former President Gloria Macapagal Arroyo told him to refuse the bribe but to proceed to process the project anyway.

ZTE was eventually awarded the $329 million contract although Arroyo dropped the project following the ensuing controversy.

The Ombudsman found Neri guilty of misconduct and suspended him for 6 months.

But the Court of Appeals reduced it to simple misconduct and ordered him to pay a fine worth 6 months of his salary.

In reversing the CA’s ruling, the Supreme Court said Neri’s dinner with ZTE officials was no ordinary meeting because he was then a key official for the approval of the ZTE deal.

“As the director general of the National Economic and Development Authority, petitioner [Neri] had the power over the approval of ZTE's bid. He insists that his office only evaluated the economic viability of the project, and had no discretion as to the contractor to be chosen, but this argument rings hollow," the ruling said.

"The economic viability of any bid is an indispensable consideration in awarding the contract. Hence, petitioner's meeting with the ZTE officials, who were heavily interested in the project's approval, raised questions on his integrity and fairness in the award of the bid,” it added.

“In accepting the invitation, he violated Section 7(d) of Republic Act No. 6713, which states that "[p]ublic officials and employees shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment... from any person in the course of their official duties... or any transaction which may be affected by the functions of their office."

'ONLY FOLLOWING GMA'S ORDER'

SC sided with the Ombudsman’s finding that there was grave misconduct as Neri’s conduct was attended with corruption and clear intent to violate the law.

The Supreme Court also found that Neri introduced his then-technical consultant and later whistleblower Jun Lozada to Abalos supposedly to reconcile ZTE’s and AHI’s bid.

“In pursuing the reconciliation of ZTE's and AHI's bids, petitioner [Neri] became complicit to Abalos' scheme. He readily lent his position to procure benefits and advantages for Abalos and ZTE. He knew that the partnership between ZTE and AHI was the alternative plan for ZTE to get the contract,” it said.

The Supreme Court also rejected Neri's excuse that he only followed Arroyo’s orders.

“His vote and opinion on the matter must be viewed separately from the President's. His roles as the director general of the agency and the vice chair of its board cannot be emasculated as a powerless position, blindly following the President's orders,” it explained.

• Neri guilty of simple misconduct for NBN deal

The SC Third Division ruling was penned by Associate Justice Marvic Leonen and concurred in by justices Ramon Paul Hernando, Henri Jean Paul Inting, Ricardo Rosario and Jhosep Lopez.

The Sandiganbayan, in 2016, acquitted Abalos of graft charges, saying the prosecution failed to sufficiently establish its allegation that Abalos brokered for ZTE.

• Abalos not guilty of graft in NBN-ZTE deal

Meanwhile, Arroyo herself was also acquitted by the Sandiganbayan of graft charges in 2016, saying the prosecution failed to prove the contract was grossly disadvantageous to the government.

The Supreme Court affirmed Arroyo’s acquittal in February this year.

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