Philippine election chief resigns but maintains innocence in bribery scandal

The chief of the Philippines' Commission on Elections (Comelec) has resigned after being accused of trying to bribe another government official in order to win approval for a 330-million-US dollar broadband contract.

But Benjamin Abalos maintained his innocence and insisted that his decision to resign as Comelec chairman was intended to spare the poll body from further controversy over the deal.

'I am not admitting guilt for any wrongdoing. Neither am I giving up on my crusade to clear my name and reputation,' he said in a statement on Monday.

Last week, former socioeconomic planning secretary Romulo Neri said he was offered a bribe to help state-owned Chinese firm ZTE Corp win a broadband contract with the Philippine government.

Neri told a special Senate hearing into the scandal that Abalos had offered him the bribe.

The husband of Gloria Arroyo, president of the Philippines, has also been dragged into the controversy.

Abalos is considered an ally of the President, who has suspended the project.

Presidential spokesman Ignacio Bunye said 'we respect his decision and appreciate his desire to protect his family and the Comelec from vicious politics.'

'We wish him well as he carries on his fight to clear his name,' Bunye said in a statement.

Philippine president visits China amid bribery scandal surrounding broadband contract

The Philippine president left for a two-day visit to China Tuesday to boost trade and political ties amid a high-profile bribery scandal that led to the suspension of a broadband contract with a Chinese company.

President Gloria Macapagal Arroyo departed for Shanghai, where she was scheduled to meet with Chinese President Hu Jintao, address the Shanghai Overseas Chamber of Commerce and attend the opening of the Special Olympics, local media reported.

The visit comes a day after the resignation of the Philippine elections chief, who was accused in Senate hearings of brokering a US$330 million (€235 million) contract with China's Zhong Xing Telecommunication Equipment (ZTE) Corp. and trying to bribe a Cabinet official and a Filipino businessman to clear the deal.

Benjamin Abalos denied the allegations against him, but the Supreme Court and later Arroyo have suspended the contract for a government broadband network.

Philippine officials and ZTE have said the scandal will not affect deepening trade ties between China and the Philippines.

Liang Wentao, economic and commercial counselor of the Chinese Embassy in Manila, told reporters earlier that corruption allegations connected to the deal "are pure domestic issues of the Philippines."

The contract was signed during Arroyo's visit to Beijing in April.

After China, Arroyo was scheduled to arrive in India for a two-day visit.