MANILA, Philippines—Initial findings from the Commission on Audit indicate that the Boy Scouts of the Philippines got the short end of the stick in its joint venture agreement with the Alphaland Corporation to develop its prime Makati property.
The BSP contributed its Malugay property valued at P600 million to develop the Makati Place project.
Former Makati Vice Mayor Ernesto Mercado has alleged that the BSP was at a disadvantage in the agreement, and that Vice President Jejomar Binay, head of the BSP, got kickbacks from the deal.
The project is among those being tackled by the Senate Blue Ribbon subcommittee looking into the alleged irregularities involving Binay.
The Vice President, as well as Alphaland executives, said the deal was aboveboard and denied that Binay received a commission from it.
The Senate panel directed the COA officials, on Thursday, to read its initial observations on the deal, which would still have to be subjected to further investigation in the audit agency.
Based on the findings read by COA director Joseph Anacay, the initial observations did not provide a favorable assessment of the deal.
“The provision in the joint venture agreement regarding the sale of the property fixing at P600 million, and the subsequent sale thereof in 2011, appeared to be disadvantageous to the BSP,” said Anacay.
He also said that the BSP, in two meetings, decided to dispose of the Malugay property through sale, and this was used as the basis of the Department of Justice in approving the sale.
However, the BSP instead entered into the joint-venture agreement with the project.
Anacay also said the BSP did not receive income out of its share from the project.
The BSP also did not reconcile or examine the records of Alphaland Makati when it came to the project, he added.
RELATED STORIES
Senators say BSP shortchanged in Alphaland deal
BSP veep also HUDCC exec under Binay
Mercado says he got millions in minutes to fund BSP hotel requested by Binay