Another smelly deal unearthed

Senators have stumbled upon another controversial $150 million deal for X-ray machines for container vans purchased by the Bureau of Customs under a $1.109 billion government-to-government loan agreement with China.

At a budget hearing last week, Customs chief Napoleon Morales admitted that at least 30 Chinese-supplied x-ray units for non-intrusive container inspection” cost $2.5 million each. The x-ray units will be paid from two separate loan releases from China Export-Import Bank. The bank was supposed to fund the cancelled $329 million national broadband deal with China?s ZTE Corp.

We want to verify reports that some of these X-ray units are not working well and that many of these machines will be installed in areas that could not be justified,” Sen. Juan Ponce Enrile said. Enrile confronted Morales with reports that a Francis Chua, who is perceived to be close to the administration, had something to do with the transaction but the Customs chief said he could not confirm this. Chua is listed as special envoy on trade investment” to China. Enrile also cited reports that even after these giant machines have been installed in key ports in Manila and other major entry points of goods, the BOC has not been able to control smuggling.

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