Junjun Binay P25M loan unpaid, renewed 25x | Inquirer News

Junjun Binay P25M loan unpaid, renewed 25x

Makati City Mayor Erwin Jejomar “Junjun” Binay Jr.  INQUIRER FILE PHOTO / NIÑO JESUS ORBETA

Makati City Mayor Erwin Jejomar “Junjun” Binay Jr. INQUIRER FILE PHOTO

Makati City Mayor Jejomar Erwin “Junjun” Binay has deposits in various banks not commensurate to his declared income in his statement of assets, liabilities and net worth (SALN), according to the Anti-Money Laundering Council (AMLC) report to the Court of Appeals.

The AMLC said Binay took out a P25-million loan on Dec. 28, 2011, from BDO Unibank Inc., which he renewed monthly 25 times.


“Said loan availment was renewed/repriced on a monthly basis from Jan. 27, 2012, to June 24, 2013. However, there is no evidence of payment,” the AMLC report said.

The net proceeds of the loan—P24,877.054.79—were credited to his account on Dec. 28, 2011.


The following day, five withdrawals were made totaling P24 million, the report said.

The report also said Binay had two other loans amounting to P25,990,000—P25 million on Oct. 16, 2014, and P990,000 on Jan. 8, 2015.

BDO bank president Nestor Tan in a text message to the Inquirer declined to comment on the matter.

A bank expert consulted by the Inquirer who asked not to be identified explained that payments were not reflected because the loans were “secured by deposits.”

“Binay has a deposit of not less than P25 million as collateral of the loan,” the expert said.

“It’s budgeting. Invest long to get better rates, borrow short of temporary needs. Also it could be fiscal discipline or forced savings,” the expert said.

The court has issued a six-month freeze order on 242 bank accounts, including those of the Binay family and alleged dummies upon the request of the AMLC in the course of the investigations on corruption charges against Vice President Jejomar Binay, who has denied wrongdoing.


The AMLC investigation showed that Binay, who was also a former city councilor from 2006 before he took over from his father, Vice President Jejomar Binay, as city mayor in 2010 had declared in his SALNs from 2006 to 2013 salaries totaling P12,324,491.64.

Minimal business income

The AMLC report showed that from 2007 to 2014 Binay’s total deposits were P24,486,462.

The report also said Binay’s declared business interests per his SALN showed only minimal income.

“Hence his bank deposits are not commensurate to his income, and represent funds derived from illicit and/or undeclared activities,” the AMLC said.

Hermitage and Manor Realty and Management Corp. was registered with the Securities and Exchange Commission (SEC) on Dec. 15, 1999, with Junjun, sisters Sen. Nancy Binay and Rep. Abby Binay, Celso Santiago and a Leonita Binay as incorporators.

But Hermitage, according to the AMLC, has not filed audited financial statements with the SEC since 2007.

Binay and his sisters were also listed as stockholders of Millennium Food Chains, also founded in 1997 with Erlinda and Kim Tun Chong, the couple who supplied cakes the city gives to its senior citizens on their birthdays.

Millennium, according to the AMLC, derived minimal income from its operation and did not declare dividends from 2006 to 2010.

The primary purpose of the company was to use, improve, subsidize, sell, exchange and hold for investment real estate of all kinds including buildings, houses, apartments and other structures.


The AMLC report said the SALN was scrutinized to determine the legitimate income of Binay during the allegedly overpriced construction of the Makati City Hall Building II and Makati Science High School building from 2007 to 2013.

Based on the table prepared by the AMLC, Binay’s net worth in 2010 increased by P2,674,653.46 million while his declared salary was only P781,654.78 for the same year.

In 2013, a significant increase in cash and net worth was noted by the AMLC report of P9,279,829.00 and P7,544,872 respectively.

The AMLC report pointed out that from 2006 to 2008 Junjun Binay did not declare any business interests and financial connections pertaining to him, his spouse or his children below 18 years old.

However, in 2009 Junjun declared business interests and financial connections with Dinette, Greenwich, Hermitage and Savona Estate Inc.

From 2010 to 2013 Binay also declared business interests with Hermitage and Millennium, but no income was reported.


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TAGS: AMLC, Anti-Money Laundering Council, Bank loan, BDO Unibank, Junjun Binay
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