VP Binay’s accuser says Makati housing project turned into overpriced hotel

After investigating allegedly overpriced Makati projects such as the City Hall Building II and the Makati Science High School, the Senate Blue Ribbon Subcommittee is expected on Thursday to investigate the alleged overpricing in the rehabilitation of three buildings initially meant to provide housing for the city's informal settlers.

According to an exclusive report by GMA News, the Senate subcommittee will continue its investigation into the allegations of graft against Vice President Jejomar Binay with an inquiry into what is now the Makati Friendship Suites, a hotel allegedly being used to give free accommodations to guests from Makati's sister cities and municipalities.

"Technical malversation, kasi ang purpose ng pag-spend ng public funds was not followed," said lawyer Rene Bondal, who scheduled to testify against Binay at the Senate hearing on Thursday.

Bondal said that the Binay and his family  were entertaining guests from the provinces to supposedly promote the city. He alleged that the Binays were actually promoting themselves.

The incumbent mayor is the Vice President's son Junjun.

Among other factors, Makati City's sister cities and municipalities were seen as a factor in Binay's unexpected victory in the vice presidential elections in 2010.

GMA News went to the Makati Friendship Suites but its management did not allow the team to take videos of the hotel. It is said to be open to the public for P2,100 per night.

Bulacan, Laguna relocation

According to Makati City Public Information Officer Joey Salgado, the government already bought a parcel of land in Bulacan and Laguna for over 1,400 families when the hotel was completed.

"By the time the buildings were completed in 2009, the city government had acquired vast tracts of lanD in San Jose Del Monte, Bulacan and Calauan, Laguna as relocation sites for Makati's informal settlers," Salgado said.

He added that Bondal already has a record in using wrong pieces of information to back his accusations.

"Mr. Bondal is the same person who claimed the birthday cakes were overpriced. This was discredited by official documents," Salgado stated.



Home Guaranty Corporation

Makati Friendship Suites is located behind the low-cost Guadalupe Bliss Housing Project of former President Ferdinand Marcos.

During Binay's time in 2002, the city bought three buildings from Home Guaranty Corporation for P17.2-million. The buildings were supposed to be a housing project and relocation site for informal settlers. Thus, turning them into Makati Friendship Suites--a hotel--was questionable.

In 2007, the city also set aside P120 million for the rehabilitation of the Makati Friendship Suites. But its contractor, ITP Construction, said at the Senate hearing last January 22 that the hotel revamp cost P242 million.

"Na-implement po ito in three phases. Phase One is about P119 million. Phase Two is about P90 million. And then the third is about P33 million," said ITP Construction president Antonio Cruz in January.

However, Bondal said that the rehabilitation only cost P47 million, based on industry standards.

"Dapat mga P47 million lang as per the industry standards were using right now. It's another case of plunder kasi overpriced na naman," he said. —Trisha Macas/NB, GMA News