COA probes conversion of housing project into hostel
The Commission on Audit (COA) has started looking into the use of the Makati Friendship Suites—buildings originally bought by the city government as part of a housing program for informal settlers in Makati which have supposedly been converted into a hostel for visiting officials.
According to the COA public information office, the initial audit probe being conducted by the local government sector office was prompted by a letter-complaint it received from a group which called itself “Concerned employees of Makati.”
According to the group, the Makati City government passed an ordinance on July 23, 2002, on the purchase of three unfinished buildings at the Guadalupe Bliss Housing project in Barangay Cembo for P17.233 million—money that was to be taken from then Mayor Jejomar Binay’s special project fund.
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The housing project, originally meant for informal settlers who had lost their houses in a fire, was later converted to a hostel which became known as the Makati Friendship Suites, it added.
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It also claimed that the hostel is used by officials of Makati’s numerous sister cities whenever they come for a visit.
Sought for comment, Joey Salgado, Makati’s public information chief and spokesperson for Vice President Binay, described the accusation as a “nonissue.”
“Makati’s actions concerning the Friendship Suites are above board and in compliance with existing rules and regulations. We are confident that the audit will bear us out,” Salgado said.
He added that the complaint-letter sent to COA “contains erroneous facts, political statements and outrageous allegations. It is obviously part of a smear campaign since the 2013 elections are just around the corner.”
According to him, the city government purchased the three unfinished buildings to complement its housing program. However, it later decided to move the informal settlers to resettlement areas in Bulacan and Laguna provinces.
“We also built health centers and schools in these sites. We also retained their benefits,” Salgado said.
