COA orders Binays, city execs to return P2.28B for Makati car park
State auditors have ordered former Vice-President and former Makati City Mayor Jejomar Binay Sr. and his son and successor Jejomar Erwin Binay Jr., as well as dozens of others, to return to the government the P2.292 billion spent on the controversial Makati City Hall Parking Building II.
The Commission on Audit Special Services Sector’s Fraud Audit Office issued two notices of disallowance (ND) dated March 15, a copy of which was obtained by reporters on Monday.
The notices of disallowance pertain to the P2.28 billion paid to Hilmarc’s Construction Corp. for the five phases of the building’s construction, and P11.97 million paid to MANA Architecture and Interior Design, Co. for the design.
The orders would not immediately take effect because the people held liable under the two NDs are given six months to submit an appeal before the FAO director and then the three-man commission proper.
“Please direct the aforementioned persons liable to settle immediately the said disallowance. Audit disallowance not appealed within six months from receipt thereof shall become final and executory…,” read the notices signed by State Auditor Filomena Ilagan and Director Chona Labrague and sent to the office of Binay Sr.’s daughter, Mayor Mar-Len Abigail Binay.
The NDs echoed the findings of the Senate blue ribbon committee and the Office of the Ombudsman that is currently pursuing graft and falsification charges in the Sandiganbayan over this case.
Article continues after this advertisementBinay camp’s side
Article continues after this advertisementSought for comment, the Binays’ spokesperson Joey Salgado said the projects were already subjected to a previous COA audit that did not come up with adverse findings. He said the NDs were “belated but not surprising.”
“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 told the Inquirer.
He also claimed the auditors failed to give the Binays the chance to respond before the NDs were issued.
Irregular from budgeting to execution
According to COA, in the case of Hilmarc’s, the payments for the five phases of construction—made in 26 installments from July 2008 to July 2013—showed “irregularities from budgeting to procurement to execution.”
All five MCHPB2 construction deals were reportedly not covered in the annual procurement plan, a violation of Section 7, Article II of the Government Procurement Reform Act.
The supplemental budget ordinances for the projects were likewise approved in November 2007 and July 2008 without available funds, contrary to Section 321 of the Local Government Code, the COA said.
The COA likewise said the awarding of the deals to Hilmarc’s was “not an outcome of actual competitive bidding,” because fake bid invitations were used as confirmed by officers of tabloid Balita.
Also questioned was the upgrade of the project to an 11-storey building worth P2.28 billion, from the original 9-storey building worth P283.197 million, without the corresponding plan and approved budget for the contract.
Reporting discrepancies
At the construction stage, the auditors said Hilmarc’s billings were reportedly not duly supported by the necessary documents.
On top of this, the COA found that Hilmarc’s Construction Corp. reported a 100-percent accomplishment rate even when the projects were still incomplete at the time.
The actual accomplishment rates were 13.91 percent for Phase I as of Jan. 6, 2009, 62.26 percent for Phase II as of Sept. 8, 2009, 28.27 percent for Phase III as of May 23, 2011, 60.51 percent for Phase IV as of June 8, 2012, and 37.27 percent for Phase V of March 7, 2013.
Still, Hilmarc’s was fully paid for each of the five contracts within one to three months of reporting, as if the projects were already 100-percent complete. The ensuing discrepancies for the five MCHPB2 contracts cost a total of P1.301 billion.
All in all, 57 individuals were held liable under the ND concerning the payments of Hilmarc’s.
Aside from the Binays, the COA held former Vice-Mayor Ernesto Mercado— a Binay ally who turned into a state witness and a bitter enemy— liable for enacting the irregular budget ordinances in 2007 and 2008 when he presided over the city council.
Also held liable were Hilmarc’s president Efren Canlas, 14 city councilors, bids and awards committee chair Marjorie de Veyra, general services office chief Mario Hechanova, city administrator Eleno Mendoza, legal officer Pio Kenneth Dasal, city budget officer Lorenza Amores, city planning and development officer Merlina Panganiban, city treasurer Nelia Barlis, officer-in-charge city engineer Mario Badillo, and three city accountants.
No track record
Similar to the Hilmarc’s deals, the COA questioned the MANA contract also for lacking a corresponding appropriation and for being done through “simulated bidding as evidenced by the presence of fictitious bidders and dubious bidding documents.”
Auditors said MANA had no track record and was barely four months old when it was awarded the architectural and engineering services contract.
The payments—made in five tranches from April 2008 to November 2013—were not supported with proof of accomplishment, the COA said.
14 persons led by the Binays, as well as MANA as the corporate entity, were held liable under this ND.
De Veyra, Dasal, Amores, Barlis, Hechanova and Badillo were also included among the liable city officials. /vvp
