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What overprice? VP Binay says Makati building cheaper than House annex


What overpricing?

Vice President Jejomar Binay on Thursday said that the cost per square meter of the allegedly overpriced P2.7-billion Makati City Hall Building II was either significantly lower or almost at par with those of other government buildings that he said were pushed by administration allies.

In a televised speech, Binay made the comparison in response to the Senate Blue Ribbon Sub-Committee's inquiry, and said he was being singled out by some senators.

"Kung gusto talaga nilang ihambing ang gastos ng Makati City Hall Building II, dapat nilang ihambing sa ibang government buildings tulad ng Iloilo Convention Center, House of Representatives Annex Building, House of Representatives Renovation and North Lounge Extension, Calamba City Hall Complex, Bangko Sentral ng Pilipinas sa Dumaguete City at Naga City, Sandiganbayan building," Binay said in his widely televised news conference.

He made the speech at the Philippine International Convention Center with his supporters, many of them wearing black shirts, in attendance. Also present were Binay’s wife Elenita, son Makati Mayor Jejomar Erwin, and daughters Anne and Senator Nancy.

Binay said the price per square meter of the questioned Makati building was P69,540.  

He said this was cheaper than the P74,751 per square meter cost of the House of Representatives Annex Building, and was almost the same cost as the P68,140 per square meter of two floors of the Iloilo Convention Center.

"Mga kaibigan, bakit nila sasabihing overpriced ang Makati City Hall Building II kung halos pareho naman ang presyo nito sa ibang gusaling pampubliko?" Binay said.

"Bakit ang mga proyekto ng mga kasama sa pulitika itinuturing na matuwid at tama? Pero 'pag sa iba ay agad na kinakastigong tiwali at baluktot?" he added.

The House annex was constructed during the latter years of the Arroyo administration, when Davao City Rep. Prospero Nograles was House Speaker.

Meanwhile, the convention center in Iloilo was a project of Senate President Franklin Drilon, a close ally of President Benigno Aquino III.

Aquino allies

The inquiry in the Senate about the Makati building was initiated by Senator Antonio Trillanes IV, a member of the Nacionalista Party. The NP is in a coalition with the ruling Liberal Party, of which Drilon is a member.

President Aquino is the chair of the LP.

Another NP member, Senator Alan Peter Cayetano, is actively participating in the inquiry.

Former Makati Vice Mayor Ernesto Mercado, an erstwhile political ally of the Binay family, had testified in the Senate hearing that when he was still mayor of Makati, Binay received a 13-percent feedback from every contract of the city.

Mercado estimated that Binay could have earned at least P52 million from the allegedly overpriced Makati building.

But in his speech on Thursday, Binay said the building was constructed in five years and every year, the city council looked for funds to finance it.
 
He added that the building was scrutinized annually by the Commission on Audit, and also underwent technical audit conducted by experts. No anomaly was found, Binay said.
 
“Ang audit ng COA ay ginagawa taun-taon sa loob ng limang taon. Bukod pa ito sa technical audit ng mga teknikal na eksperto - inhinyero, arkitekto, surbeyor, at mga ekspertong accountants. Sa loob ng limang taon, sampung audit ang ginawa nila at wala silang nakita na anumang anomaly,” the Vice President said.

Construction handbook
 
Binay chided Cayetano and Trillanes for supposedly acting as if they were experts on audit procedures and building construction.
 
“[Ang] ilang senador, konting basa ng construction handbook, konting kausap sa mga binayarang appraisers daw, at isang pasyal lang sa building, may konklusyon agad na overpricing,” Binay said.
 
He said under the law, only the Government Procurement Act and the COA rules are the basis in the construction of government buildings.
 
“Hindi ang isang construction handbook na hilig iwagayway ng isang senador,” Binay said.

Cayetano had presented before the committee such a handbook to indicate the alleged extravagant cost of the city hall building.
 
The Vice President also said that officials from Hilmarc's company, which constructed the building, had denied Mercado's accusation that he asked or received bribes from them.
 
“Kung mayroon mang komisyon na sinasabing kinuha ang vice mayor, ito ay maliwanag na para sa kanya lamang,” he said.

Like Gloria

Cayetano, one of the senators actively participating in the Senate inquiry, said on Thursday that Binay's speech should have answered the allegations against him.
 
"Kung gusto ng Vice President na may maniwala sa kanya, lumabas siya sa hearing at sagutin niya punto por punto. Hindi 'yung nagtatago siya sa likod ng mga supporters niya, spokesmen niya, at panay motherhood statement ang sinasabi nila," Cayetano told reporters.
 
He likened Binay's style to that of former President Gloria Macapagal-Arroyo.
 
"Ang pinangako niya ay presidential style, hindi President Gloria Macapagal-Arroyo style. Kaparehong-kapareho ito ng ginagawa ni GMA na ayaw sumagot under oath, panay motherhood statement at panay conclusion," Cayetano said.  —NB/KG, GMA News