Former NEDA Secretary Romulo Neri enters the courtroom in the fifth division of the Sandiganbayan in Quezon City to attend a hearing on the botched $329-million national broadband deal between the government and China's ZTE Corp. (Photo by CANDICE REYES)

Former Social Security System (SSS) president Romulo Neri pleaded not guilty Friday to graft charges filed against him in connection with the $329 million broadband contract between the Philippine government and China’s Zhong Xing Telecommunications Equipment (ZTE).

Neri, clad in black and dark-gray outfit, entered the plea during his arraignment before the Sandiganbayan fifth division chaired by Justice Roland Jurado.

“Not guilty,’’ Neri told the court in a soft voice when asked to enter a plea. The proceeding was brief and Neri and his lawyers immediately went for the elevator and made no further comment despite queries from newsmen regarding his case.

A former director of the National Economic Development Authority (NEDA) during then President Arroyo, Neri has been accused of violating Section 3 (h) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act for having “directly or indirectly’’ participated in a government telecommunication’s transaction with China’s ZTE Corporation.

The Office of the Ombudsman in its May 2010 ruling said that Neri violated RA 3019 for “directly or indirectly having financing or pecuniary interest in any business, contract or transaction in connection with which he intervenes or takes part in his official capacity, or in which he is prohibited by the Constitution or by any law from having any interest.’’

The $329 million National Broadband Network (NBN) project entered with China’s ZTE Corp. in August 2007 sought to connect government agencies throughout the Philippines through the Internet.

The former president, however, terminated the contract in September 2007 after news of bribery surrounding the deal came out.

Asked by reporters if Neri will testify against former President Arroyo and former Comelec chair Benjamin Abalos, Paul Lentejas, Neri’s lawyer said “we will consider it at a proper time.’’

Lentejas said that Neri, however, will not cooperate with the Truth Commission, a body formed by the new President to look into the anomalies involving the past administration. Former Chief Justice Hilario Davide Jr. heads the commission.

“With all due respect to the commission, we will not cooperate with them. Whatever they do is irrelevant to us because arraignment is over. Anything he (Neri) will say from this point could be self-incriminating,’’ he said.

Lentejas maintained that Neri is not guilty of any crime and that he will fight his case tooth and nail.

He also challenged the prosecution to prove their case, adding they should be the one to show more evidence.

The anti-graft court has set Neri’s pre-trial hearing on August 20.

Meanwhile, the Sandiganbayan fourth division chaired by Justice Gregory Ong granted Friday Abalos’ motion for deferment on August 10, originally set at 8a.m. on July 20.

“Just to make in on records, we will have no objection to the deferment,’’ the fourth division graft court said in a reply to the motion for deferment filed on July 13 by the Office of the Special Prosecutor.