Senate panel to probe alleged overpricing in Makati City Hall parking building

The allegation of overpricing in the construction of a Makati City Hall parking building involving Vice President Jejomar Binay and his son, Makati Mayor Erwin Jejomar Binay Jr., has reached the Senate.
 
The Senate blue ribbon committee, headed by Senator Teofisto  Guingona III, will be conducting an investigation on the strength of a resolution filed by Senator Antonio Trillanes IV.  
 
Guingona manifested at the plenary that a sub-committee headed by Sen. Koko Pimentel will also be part of the inquiry upon the latter’s request.
 
Senator Nancy Binay, on the other hand, said she will inhibit from the hearing adding that her brother can very well defend himself.
 
“Parang hindi yata proper (na sumali magparticipate ako sa hearing). I think siguro hindi proper saka I think my brother can defend it. Madali nya ma-defend yung issue na yan,” she said.
 
In the resolution, Trillanes said that on July 22, plunder and graft charges were filed against the two Binays and 23 others, due to alleged “unconscionable overpricing” in the construction of an 11-storey parking building that the city government supposedly built for P1.56 billion.
 
He said the building should only have cost  P798.2 million as the reasonable cost of construction based on the present construction standards for high-end commercial buildings of the National Statistics Office.
 
The resolution stated that the actual payments for the building, as of December 31, 2013, per the Commission on Audit report of February 17, 2014, already amounts to a total of P2,367,679,633.95, with the building contract split into five phases in violation of existing procurement law but which were allegedly all won by the same contractor.
 
It said the city government of Makati actually spent around P 2.4 billion for the building, thus, placing the actual overpriced sum in the amount of P 1.601 billion, money that could have been used to build more than 3,000 classrooms, inclusive of toilets and furniture.
 
The resolution also noted the alleged overprice in the construction cost of the 22-storey Makati City Hall building constructed by the City of Makati in the 1990s, which amounted to an average cost of P240,000.00 per square meter, “is even more shocking, outrageous and unconscionable.”
 
"This far exceeds by a whopping P100,000.00 per square meter the total cost of the two-storey housing units built by the National Housing Authority (NHA) for soldiers and policemen under the AFP/PNP Housing Project initiated by Pres. Benigno S. Aquino III, which is pegged at P140,000.00 per unit," it added.
 
The resolution also called for the investigation of persistent reports on the alleged misuse of local government funds for programs to boost the national campaign of a former local executive by funding his trips, and hosting visiting local government executives; a purported P230 million infomercial campaign which started in 2009 using Makati funds; bogus projects and ghost employees; blatant and brazen overpricing and bid rigging; among others.
 
“This exercise of oversight function of the Senate will give the Vice President a chance to clear his name, if he is indeed innocent. If not, then it is high time that the Filipino people will get to know more about this person who is aspiring to be the next president of this country,” Trillanes said.
 
In an interview with reporters, Sen. Binay said her family welcomes the inquiry to provide them a venue to explain their side on the issue but they were surprised that such issue reached the Senate.
 
“My brother can answer all questions pagdating dun sa building. Nakakagulat lang is, ano national relevance nung building di ba? Parang ang dami naming trabaho dito sa Senado tapos...nakakalungkot lang na parang may dating 2016 yung resolution,” she said.
   
“Parang nakakagulat lang at nakakalungkot na gamitin yung Senado to hit their potential rival for 2016 di ba? Bagsak na nga yung rating namin dito sa Senado tapos hahaluan pa ng ganung pulitika, ewan ko paano pa kami makakaangat,” she added.
 
Binay said the family is ready for such accusations.
 
“Di ba sabi ko bring it on....pinaghahandaan naman namin yung mga ganitong issue,” she said.

Guingona is a member of the administration Liberal Party while Trillanes is from the Nacionalista Party, which is also part of the administration coalition. — JDS, GMA News