MANILA - The Fraud Audit Office of the Commission on Audit has sent two notices of disallowance to the Makati City government in connection with the P2.29 billion design and construction of the Makati City Hall Parking Building 2, a project of former Makati City mayors Jejomar Binay and Jejomar Erwin Binay Jr.

The notices were sent to the office of the current city mayor and daughter of Binay Sr., Mar-Len Abigail Binay, after the conduct of special audits on the P11.974 million payment made to MANA Architecture and Interior Design Co. for the design of the building and P2.28 billion paid to Hillmarc’s Construction Corporation for the construction phase of the project.

Aside from the Binay father and son, former city administrator and Bids and Awards Committee Chair Marjorie De Veyra, BAC Vice Chair Engr. Mario Hechanova, former Vice Mayor Ernesto Mercado, and Hillmarc’s Construction Corporation President Efren Canlas were held liable based on their position and the nature and extent of their participation in the transactions involving the allegedly overpriced building.

The payment made to MANA covers five checks issued from 2008 to 2013 for preliminary services, contract document services and supervisory services.

“The contract for architectural and engineering services for the MCHBP2 with MANA Architecture and Interior Design Co. for P11,974,900 is not covered with an appropriation, awarded through simulated bidding and payments thereof were not supported with the documents and information required by applicable law, rules and regulations,” the COA-FAO said in the notice signed by state auditor Filomena Ilagan dated March 15, 2018.

In 2014, lawyer Renato Bondal said the P2.29 billion building was overpriced, which was denied by the Binays by claiming that they actually built a world-class facility.

Graft, malversation and falsification of documents charges have since been filed by the Ombudsman against the Binays and those involved in the projects at the Sandiganbayan.

The COA-FAO noted that the actual construction of the 11-storey building was with no approved plan nor available funds.

Actual verification of documents and recalculations made also disclosed that the 100 percent reported accomplishments do not reconcile with the actual accomplishments, showing discrepancies totaling P1.301 billion due to “over quantities and non-submission of outline technical specifications.”

For Phase I, the actual accomplishment was only 13.91 percent; Phase II, 62.26%; Phase III 28.27%; Phase IV, 60.51%; and Phase 37.27%

The COA-FAO also said the 5 contracts for the construction of the building which were awarded to Hillmarc’s were not an outcome of competitive bidding as the invitations to participate in the bidding were fake.

“The publications of the invitation to Apply for Eligibility and to Bid in Balita for Phases I to IV were fake per Affidavits of Publication executed by the general manager and the vice-president for classified advertising of Balita, the COA-FAO said.

The other individuals held liable by the COA-FAO are Ulysses Orienza, Gerardo San Gabriel, Nelson Morales (deceased), Atty. Pio Kenneth Dasal, Lorenza Amores, Ernesto Aspillaga, Maria Theresa De Lara, Virgilio Hilario, Angelito Gatchalian, Henry Jacome, Arnold Magpantay, Luis Javier, Jr., Salvador Pangilinan, Armando Padilla, Tosca Camille Puno, Vincent Sese, Elias Tolention, Jr., Constancia Licaucao, Christine Mercado, Israel Cruzado, Erlinda Gonzales, Romulo Pena, Monique Lagdameo, Merlina Panganiban, Norman Flores, Giovanni Condes, Manolito Uyaco, Ralph Liberato, Atty. Rodel Nayve, Carmelita Morales, Febronia Ambrosio, Rowena Carpio, Nelia Barlis, Leonila Querijero, Cecilio Lim III, Raydes Pestaño, Vissia Marie Aldon, Eleno Mendoza, Jr., Line Dela Peña, Rosemarie Yumul, Arnel Cadangan, Patrick Carullo, Jane Caño, Alden Albano, Emerito Magat, Eleuterio Tamayo, Ronaldo Garcia, Connie Consulta, Abraham Pastor, Ronelio Tan, Mario Badillo and Viriginia Hernandez.

The COA-FAO ordered current mayor Abigail Binay to inform the individuals about the disallowances.

“Please direct the aforementioned persons liable to settle immediately the said disallowance. Audit disallowance not appealed within six months from receipt hereof shall become final and executory,” the COA-FAO said.

DEMOLITION JOB

Joey Salgado, spokesperson for the Binays, said the special audit was part of the supposed demolition job by the political enemies of the Binays.

“It must be emphasized that these projects were previously subjected to COA audit and there were no adverse findings. 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," he said.

Salgado nevertheless said the Binays intend to appeal the COA’s decision.

He noted COA released to the Ombudsman its fraud audit findings before it issued its Notice of Disallowance in violation of COA Memorandum 2015-007 dated April 16, 2015.

"The COA denied former VP Binay and former mayor Junjun their basic right to due process when it issued the fraud audit report without giving them the opportunity to respond to the Notice of Disallowance. Until and after their appeal of the disallowance is resolved, the fraud audit report cannot be enforced by COA," he said.