Neri Vs. Senate - The Facts and The Court's Ruling

The Facts and The Court's Ruling

Petitioner Romulo Neri, then Director General of the National Economic and Development Authority (NEDA), was invited by the respondent Senate Committees to attend their joint investigation on the alleged anomalies in the National Broadband Network (NBN) Project. This project was contracted by the Philippine Government with the Chinese firm Zhong Xing Telecommunications Equipment (ZTE), which involved the amount of US$ 329,481,290. When he testified before the Senate Committees, he disclosed that then Commission on Elections Chairman Benjamin Abalos, brokering for ZTE, offered him P200 million in exchange for his approval of the NBN Project. He further narrated that he informed President Gloria Macapagal-Arroyo about the bribery attempt and that she instructed him not to accept the bribe. However, when probed further on what they discussed about the NBN Project, petitioner refused to answer, invoking “executive privilege.” In particular, he refused to answer the questions on 1.) whether or not the President followed up the NBN Project, 2.) whether or not she directed him to prioritize it, and 3.) whether or not she directed him to approve it.

Later on, respondent Committees issued a Subpoena Ad Testificandum to petitioner, requiring him to appear and testify on 20 November 2007. However, Executive Secretary Eduardo Ermita sent a letter dated 15 November to the Committees requesting them to dispense with Neri's testimony on the ground of executive privilege. Ermita invoked the privilege on the ground that “the information sought to be disclosed might impair our diplomatic as well as economic relations with the People’s Republic of China,” and given the confidential nature in which these information were conveyed to the President, Neri “cannot provide the Committee any further details of these conversations, without disclosing the very thing the privilege is designed to protect.” Thus, on 20 November, Neri did not appear before the respondent Committees.

On 22 November, respondents issued a Show Cause Letter to Neri requiring him to show cause why he should not be cited for contempt for his failure to attend the scheduled hearing on 20 November. On 29 November, Neri replied to the Show Cause Letter and explained that he did not intend to snub the Senate hearing, and requested that if there be new matters that were not yet taken up during his first appearance, he be informed in advance so he can prepare himself. He added that his non-appearance was upon the order of the President, and that his conversation with her dealt with delicate and sensitive national security and diplomatic matters relating to the impact of the bribery scandal involving high government officials and the possible loss of confidence of foreign investors and lenders in the Philippines. Respondents found the explanation unsatisfactory, and later on issued an Order citing Neri in contempt and consequently ordering his arrest and detention at the Office of the Senate Sergeant-At-Arms until he appears and gives his testimony.