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Ex-Vice Mayor Mercado: Binay got almost P200M from Boy Scouts’ land deal


(Updated 6:34 p.m.) Former Makati Vice Mayor Ernesto Mercado on Thursday accused Vice President Jejomar Binay of earning about P200 million in kickbacks from a land deal between the Boy Scouts of the Philippines (BSP) and developer Alphaland Corp.

At the resumption of the Senate blue ribbon subcommittee's hearing on the alleged overpriced Makati City Hall Building II and other alleged anomalies involving Binay, Mercado said the Vice President received an initial five percent from the deal, which was allegedly done on his birthday.

On the other hand, the P600 million promised to the BSP was not given.

"Ang five percent na ito ay umabot ng halos P200 million habang ang Boy Scouts ay wala pa ring natatanggap," Mercado said. "Papel lamang ng pangako ang hawak ng Boy Scouts. P600 million na dapat hawak ng Boys Scouts... pero nasa papel pa lamang ito"

Mercado, who himself is facing graft and plunder charges for receiving bribes, said Binay used the amount to fund his campaign for the Vice President position in 2010. "Kinuha ni VP Binay ang five percent sa Alpha Land deal para gamitin sa kanyang eleksyon," said Mercado.
 
"Ang kanyang pinangarap talaga ay maging Presidente, at mabuti nalang po na ang Vice President, kasi kung ganoon, baka lumubog na ang ating bayan."

'Paumanhin po'
 
In his opening statement, Mercado indicated that he would be filing plunder charges before the Office of the Ombudsman against Binay and officials from both Alphaand and the BSP.
 
"Ngayong umaga, ipepresenta ko po at magsasampa pagkatapos nito ng kaso sa Ombudsman, at kung kinakailangan, pupunta po akong civil court, gagawin ko po dahil sangkot po rito ang mga kabataang miyembro ng BSP," Mercado said.
 
Mercado then apologized to some of his colleagues at the BSP as he will be filing plunder complaints against them.
 
"Una po, umaapela po ako sa Boy Scouts, lalo na po sa mga member ng executive board, humihingi na po ako ng patawad sa inyo, dahil kayo pong lahat na member ng national executive board noong year 2011, isasama ko sa pagsasampa ko ng plunder case," he said.
 
"Kasama rin po diyan ang pamunuan ng Alpha Land dahil gusto ko hong lumabas ang katotohanan na ang pamunuan natin ay dapat manindigan," he added.

One-hectare property

During Thursday's hearing, Mercado said that in 1976, BF Goodrich Philippines, now called Sime Darby, donated a one-hectare property at the corner of Ayala Avenue and Malugay Street in Makati City to the BSP.

"The terms of the Deed of Donation and leaseback agreement are that BF Goodrich would have exclusive leaseholder rights to the property for 25 years with an option to renew the lease for another 25 years," he said.

However, he said the BSP and former Manila Mayor Alfredo Lim questioned the leaseback agreement in court, with the Boy Scouts losing the case and bringing it to the Court of Appeals.

According to Mercado, Binay approached Sime Darby in 2004 to negotiate a settlement to the case, and in July 2005, a joint sale agreement was signed for the sale of the lot.

"60-40 sharing. 60 percent to the Boy Scouts for the land, and 40 percent to Sime Darby," Mercado said, adding that the property was appraised at P1 billion by an independent appraiser.

In 2008, Silvertown, the local arm of Sime Darby which was later renamed Alphaland Makati Place, Inc. (AMPI), and and the Boy Scouts entered into a Joint Venture Agreement to develop the property. The BSP retained ownership of the land, while Silvertown/Alphaland would be the developer/investor.

Birthday gift?

"The Boy Scouts would get 15 percent of the project while Alphaland would get 85 percent," Mercado said.

Mercado said he questioned the percentage given to the BSP, saying 20 percent should be given instead of 15 percent.

However, Mercado claimed that Gerry Limlingan, Binay's alleged finance officer, informed him that they would really receive 20 percent, but the five percent will be given to Binay to fund his campaign for vice president in the 2010 elections.

"Iyan ang naging malaking kamalian ko, ang napapayag ako ni Gerry Limlingan," Mercado said.

He added that on June 30, 2008, "tinawagan ako ni VP Binay para sabihin na ako na lang pumirma sa kontrata dahil siya'y aalis papuntang abroad."

Mercado said Binay's five percent share from the development of the property was coursed through Noble Care Management Corp., which is owned by a certain Babes Oreta.

“Sinabi sa akin ni Babes Oreta na huwag akong mag-alala at bahala na sila ni Gerry Limlingan na itago ang share ni VP Binay, dahil mayroon siyang kumpanya — ang Noble Care Management Corp. — kung saan itatago at lilinisin ang share ni VP Binay sa deal na ito,” he said.

He said in August 2008, Alphaland gave Noble Care 2031 shares or P20,310, and a P100.4-million loan. But on November 11, 2010, Alphaland bought back the shares for P89 million, and wrote off the debt.

Mercado said Binay received P188,973,460 from the transaction, which was done on Binay's birthday.

'Mercado asked for payola'

The camp of Binay, meanwhile, denied any anomalies in the deal.
 
In a statement, lawyer Rico Paolo Quicho, Binay's spokesperson for political affairs, also denied former Makati Vice Mayor Ernesto Mercado's allegations that the Vice President received kickbacks amounting to almost P200 million from the land deal.
 
Instead, Quicho stressed that it was Mercado who asked for payola.
 
"Si Vice Mayor Mercado lahat ng kasalanan n’yang ginawa ay sinisisi nya ngayon kay Vice President Binay," he said. "Si Mercado ang humingi ng kickback, sinabi na naman ni Vice Mayor Mercado na mayroon na naman pong kalokohan pero malinaw na siya ang humingi."
 
Meanwhile, quoting Alphaland President Mario Oreta, Quicho said it was Mercado who negotiated the deal between Alphaland and BSP.
 
As of posting time, GMA News Online tried but failed to get an independent statement from Alphaland.
 
Quicho also stressed that the contract between Alphaland and the BSP was signed by Mercado.
 
Quoting Oreta, Quicho said Mercado even hinted at getting benefits from the project.
 
"I am sure you will remember that you made less than subtle hints that some 'benefits' were due to you for agreeing to conclude this project, and I am sure that you will also remember that I explained to you that Alphaland was a joint venture company with the Ashmore Group, and that every transaction was closely scrutinized by Ashmore," Oreta supposedly told Quicho.

'Valid transaction'

Earlier, a lawyer from an independent law firm 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. — RSJ/KBK/JST, GMA News