Makati gov’t standoff worries trade groups

Makati Mayor Jejomar Erwin “Junjun” Binay Jr. (left) and Vice Mayor Romulo “Kid” Peña Jr. INQUIRER PHOTOS / RICHARD A. REYES

The country’s largest and most influential business organizations are calling for a swift resolution to the current impasse at Makati City Hall between Mayor Jejomar Erwin Binay Jr. and Vice Mayor Romulo Peña, amid fears that it could have a negative impact on the investment climate.

They warned that small businessmen would most likely be at the losing end of any protracted standoff between Binay and Peña, being more vulnerable than the large corporations based in the country’s premier central business district.

“We want to see this situation resolved as soon as possible,” Makati Business Club (MBC) executive director Peter Perfecto said on Tuesday in an Inquirer interview. “It’s in everyone’s interest to see this issue settled.”

The MBC is the umbrella organization of the country’s largest corporations, many of which are headquartered in Makati.

Now on its second week, the impasse started with Binay refusing to vacate his office after being ordered suspended by the Office of the Ombudsman over corruption allegations. He later secured a temporary restraining order (TRO) against the suspension from the Court of Appeals.

The TRO, however, was issued three hours after Peña took his oath as acting mayor. He has since set up his own office in this capacity at the old city hall.

According to Perfecto, most MBC members operate on a national scope and are thus not affected by the Binay-Peña conflict. He pointed out, however, that smaller firms with local operations under City Hall’s regulation may find it more difficult to conduct business if the situation goes unresolved.

Businessmen need clarity

“What we’re really worried about are the small and medium enterprises whose operations might be hampered by this,” he said, stressing that businessmen need clarity on which party to approach at City Hall for approvals and permits.

Perfecto expressed hope that the Binay and Peña camps, the latter recognized by the Department of the Interior and Local Governments, would enter into a dialogue and iron things out amicably.

If this is not possible, then the court should soon determine which camp is really in charge of the Makati city government, he said.

Perfecto’s views were echoed by another prominent Makati-based business group, the Management Association of the Philippines (MAP).

In a text message, MAP president Francisco del Rosario Jr. said the stalemate would be felt more in the completion of business requirements and processes requiring the mayor’s signature.

“This will delay business operations and cash disbursements. (There is) no effect on capital markets and investment climate. An early resolution, however, will be appreciated by the business community,” Del Rosario said.

The Bankers Association of the Philippines (BAP), meanwhile, assured the public that its member financial organizations remain unaffected by the local political tensions.

“Our members are operating normally,” said BAP executive director Cesar Virtusio. “There have been no disruptions.”

“(But) like everyone else, we want to see a resolution to this,” Virtusio said.