Boy Scouts: No anomaly in property deal with Alphaland

The Boy Scouts of the Philippines (BSP) on Thursday denied entering into an anomalous contract with property developer Alphaland Corporation for the development of a one-hectare property in Makati City.

 

In a report of GMA News TV's “Quick Response Team (QRT)”, BSP senior vice president and acting secretary general Atty. Wendell Avisado was quoted as saying that the deal with Alphaland entered into 2008 was legal and above-board.

 

Avisado pointed out that it was Mercado himself, as then BSP's Senior Vice President and chairman of the BSP assets management committee, who signed the contract with Alphaland.

 

At the continuation of the Senate blue ribbon subcommittee hearing on the alleged overpriced Makati City Hall Building II and other alleged anomalies involving Vice President Jejomar Binay, Mercado alleged that the Vice President received P200 million in kickbacks from the deal between BSP and Alphaland.

 

Binay is the president of BSP from 1998 to 2000 and from 2001 to present.

 

According to Mercado, based on the contract between BSP and Alphaland, the BSP was supposed to receive P600 million for the Alphaland's development of a one-hectare property donated by BF Goodrich Philippines (now Sime Darby) to BSP in 1976.

 

Mercado said that up to now, the BSP has yet to receive its share from the joint property development venture, while Binay has allegedly already received P200 million from the deal.

Mercado alleged that the Vice President used the amount for his campaign in 2010.

 

“It is unfortunate and it saddens us that the BSP is being unnecessarily dragged into the controversy. Napupulitika ang Boy Scouts of the Philippines e,” Avisado said in a separate report aired on GMA News “24 Oras” Thursday night.

 

Avisado in the QRT report was quoted as saying that they are now studying the possibility of filing charges against Mercado.

 

The one-hectare BSP property located on Ayala Avenue Extension is being developed by Alphaland as a residential and leisure complex featuring The Residences condominium building, The City Club leisure park and the Makati Place Mall.

 

Avisado said that while their P600 million shares from the joint venture has not yet been paid fully by Alphaland, the BSP has been receiving P530,000 per month from the company as lease payment for occupying a BSP podium to serve as the Alphaland's showroom.

 

Avisado said that as a government owned and controlled entity, the Commission on Audit (COA) has been regularly reviewing their assets and contracts entered into with public or private companies.

 

“Chine-check ng COA ang listahan ng mga properties namin and if may findings sila, they issue audit observations. And so far, wala silang ganun (na ini-issue) sa amin,” Avisado said.

 

Avisado said it was in 2007 when the BSP National Executive Council to enter into joint ventures with private companies in order for the properties of the organization to become more profitable.

 

Based on the 2013 COA report, the BSP has a total assets of P3 billion which includes P68 million-worth of land properties.

 

A lawyer from an independent law firm has earlier said the transaction between the BSP and Alphaland is valid, based on the deed of absolute sale.

 

"It appears to be a valid transaction between the parties. The same as every public corporation, there must be transparency in every transaction they make," Nicolas & De Vega Law Offices senior associate Atty. Jan Paulo Dino said in a report on "24 Oras" Wednesday night.

 

Meanwhile, in a statement issued on Thursday, Alphaland likewise denied Mercado's allegations.

 

“In sum, Alphaland vehemently and categorically denies Mr. Mercado's lies and falsehoods. Alphaland intends to sue Mr. Mercado for criminal libel and defamation (and will claim at least P100 million in damages) before the proper courts,” a portion of Alphaland's statement reads. —Elizabeth Marcelo/NB, GMA News