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Philippine President Gloria Arroyo has told China that her country has decided to cancel a multimillion dollar telecommunications deal with a Chinese firm after it triggered a corruption scandal at home. A government spokesman said Wednesday that Ms. Arroyo personally informed Chinese President Hu Jintao of the decision during a meeting with him in Beijing on Tuesday.
Ms. Arroyo is in Beijing attending an event marking the opening of the 2007 Special Olympics. The spokesman said Mr. Hu expressed his understanding of the Manilla's decision during the meeting. The deal was cancelled following allegations of bribes and kickbacks.
Earlier this week, the chief of the Philippines' election commission resigned after he was accused of accepting bribes to secure the contract for Chinese telecom firm ZTE Corp.
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