(Associated Press via NewsEdge) China is closely watching investigations into alleged bribery in a Philippine government broadband contract won by a Chinese company, a diplomat said.
An opposition politician filed an impeachment complaint against the Philippine elections chief who had been accused of offering bribes to a Cabinet official and a businessman to push the national broadband network contract with China's ZTE.
ZTE has denied any irregularities.
'We are taking a close watch on the recent developments in the Philippines regarding this (broadband) project,' said Liang Wentao, economic and commercial counselor of the Chinese Embassy in Manila.
He said corruption allegations connected to the deal 'are pure domestic issues of the Philippines.'
The project was to be funded with a $330-million preferential loan from China.
Despite suspension of the project ordered by President Gloria Macapagal-Arroyo and the Philippine Supreme Court, Liang said economic and trade cooperation between the Philippines and China would not be affected.
He said China had offered $1.8 billion in preferential buyer's credits to the Philippines, making it the largest recipient of such loans from China.
The impeachment complaint against Benjamin Abalos, head of the Commission on Elections, stems from a Senate hearing at which former Socioeconomic Secretary Romulo Neri said Abalos offered him $4.4 million to endorse a Chinese company's bid for a broadband network.
Abalos has denied the allegations.
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