Binays told to refund P2.29B for overpriced Makati bldg

Former vice president Jejomar Binay Sr. (left) and his son, former Makati City mayor Jejomar Erwin “Junjun” Binay Jr.

MANILA – The Commission on Audit (COA) has ordered former vice president Jejomar Binay Sr. and his son, former Makati City mayor Jejomar Erwin “Junjun” Binay Jr., to return government funds used in the controversial Makati City Hall Parking Building.

In two notices sent to Makati Mayor Abigail Binay, COA Fraud Audit Office disallowed the P2.28 billion allotted for the construction of the building implemented by Hilmarc’s Construction Corporation and the P11.97 million contract awarded to MANA Architecture and Interior Design Co. for the architectural and engineering phase.

Aside from the Binays, the COA also directed 56 other Makati City officials – including former vice mayor Ernesto Mercado – and private contractors to collectively “settle immediately” if the notices of disallowance (ND) are not appealed within six months.

The construction of the controversial parking building was divided into five phases valued at P387 million for Phase 1, P499.36 million for Phase 2, about P600 million for Phase 3, P649.93 million for Phase 4, and P143.8 million for Phase 5.

“All five phases failed to undergo a competitive public bidding as required under the Government Procurement Reform Act, while the payments of reported accomplishments of Hilmarc’s were not supported by available funds and supporting documents,” COA said.

The COA said most of the discrepancies came during the term of Binay Jr., where overpayments worth P430.367 million for Phase 3, P257 million for Phase 4,and P91 million for Phase 5 were seen.

“The largest discrepancy under the term of Binay Jr. was the 71.80 percent for Phase 3, when only 28.27 percent of the construction phase was finished despite a 100 percent accomplishment rate dated May 23, 2011,” COA said.

Binay Sr., meanwhile, was held liable for the P523-million discrepancy for Phases 1, where only 13.91 percent of the target was reached, and Phase 2, where the accomplished rate was only 62.26 percent.

The elder Binay has also allowed the revised construction of the parking building – from a nine-storey structure worth P283 million into an 11-storey structure with a roof deck worth P2.28 billion  – despite the lack of an approved budget.

Meanwhile, Binay spokesperson Joey Salgado said both father and son plan to appeal the COA findings as it was already included in the charges against them by the Office of the Ombudsman.

“The COA only started singing a different tune, in effect questioning the competence of its own people, when the previous administration began its political demolition work on former VP Binay and his family,” Salgado said in a statement.

The Binays are already facing multiple criminal charges at the Sandiganbayan in connection with the allegedly anomalous project./PN

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