The Supreme Court has ordered the dismissal of then Director General Romulo Neri of the National Economic Development Authority for brokering, “despite knowledge of corruption,” the botched 2007 transaction with Zhing Xing Telecommunications Equipment (ZTE) for a $325.9 million national broadband network project of the government.
In a decision penned by Associate Justice Marvic Leonen, the SC ruled that while the dismissal had been rendered moot and academic since Neri was no longer holding the post of NEDA director general, the petitioner could still suffer the accessory penalties of “cancellation of eligibility, forfeiture of leave credits and retirement benefits, and perpetual disqualification from reemployment in the government service,” once the decision became final and executory.
The high court overturned the August 21, 2009 ruling of the Office of the Ombudsman, which found Neri guilty only of misconduct and imposed on him a six-month suspension without pay as NEDA director general.
“Wherefore, the petition for review on Certiorari is denied. The assailed July 3, 2013 Decision and May 5, 2014 Resolution of the Court of Appeals in CA-G.R. SP. 114299 are reversed and set aside. Petitioner Romulo L. Neri is dismissed from service, which includes the accessory penalties of cancellation of eligibility, forfeiture of leave credits and retirement benefits, and perpetual disqualification from reemployment in the government service. So ordered,” read the decision.
On Neri’s appeal, the Court of Appeals modified the anti-graft body’s ruling as it declared him guilty of simple misconduct and imposed on him a fine equivalent to his six months salary. He elevated the case to the SC.
Neri’s graft case started in 2010 arising from the NBN-ZTE deal which had been dismissed by the Sandiganbayan in 2016.
The anti-graft court granted his demurrer to evidence, a pleading filed to dismiss the case on the ground that the prosecution’s evidence cannot sustain a conviction.
Former President Gloria Macapagal Arroyo, who scrapped the NBN-ZTE deal, had also been cleared of the graft and other charges by the Sandiganbayan, also on a demurrer to evidence.
When the judgment of acquittal was elevated to the SC, the SC dismissed the petition on Arroyo’s constitutional right against double jeopardy.
The NBN-ZTE deal, which started in 2006, was for the installation of a nationwide public telecommunications infrastructure to link all government agencies and offices.
After the deal was awarded to ZTE in 2007, there had been allegations of corruption which, among other incidents, led to a Senate inquiry.
As a consequence, a complaint was filed before the OMB against Neri, then President Arroyo and several other persons for alleged graft and violations of the Revised Penal Code.
Among the complainants were Teofisto T. Guingona, Jr., Harry L. Roque, Jr., Ma. Dominga B. Padilla, Roel Garcia, Bebu Bulchand, and Fr. Jose P. Dizon.
In the case of Neri, the complaints alleged that he should be charged with dereliction of duties under Article 208 of the Revised Penal Code for maliciously refraining from instituting prosecution and tolerating the corruption surrounding the deal.
The complainants also alleged that as head of NEDA, Neri had a hand in approving the deal because the agency's approval was required. After a fact-finding investigation, he was charged with grave misconduct and dishonesty.