‘Binays’ approval of P14-B budget illegal’

POLICEG RADUATION President Aquino, flanked by Vice President Jejomar Binay and Interior Secretary Mel Senen Sarmiento (right), at the PNPA graduation in Silang, Cavite. LYN RILLON

Vice President Jejomar Binay and his son Junjun unlawfully approved supplemental budgets amounting to P14 billion from 2007 to 2011 to fund several infrastructure projects during their tenure as mayors of Makati City, according to the Commission on Audit (COA).

The amount included the P2.8 billion for the construction of the Makati City Hall Building II when the elder Binay was still mayor in 2008.

The alleged irregularities stemming from the construction of the controversial 11-story parking building prompted the Office of the Ombudsman to impose a lifetime ban on the younger Binay from working in the government.

In a 148-page audit report, a copy of which was obtained by the Inquirer, the state auditors said Binay approved multimillion-peso infrastructure projects that were not contained in the city’s annual procurement plan.

The report dated March 7 was prepared by a 12-member audit team headed by lawyer Chona Labrague. The team spent 90 working days to complete the audit.

The Vice President had earlier accused  Ombudsman Conchita Carpio Morales of trying to influence the COA to make public the audit report. She said Binay’s allegation was “a lie.”

In its report, the state audit body said the construction of the parking building “showed irregularities from budgeting to procurement to execution resulting in misuse of public funds.”

The COA said funds for the infrastructure projects were “sourced from… loans, unappropriated surplus or savings of the executive budget and surplus of income.”

‘Bloated’ budget

It said copies of the statements of receipts and expenditures revealed that the budget was “bloated” by P1.24 billion in 2007 and P2.3 billion in 2008, the year the parking building was supposedly finished.

The financial statements made it appear that the funds were proceeds of loans “which were verified to be not actually released” by state-owned Land Bank of the Philippines, the COA said.

But records showed that the loans were actually released in 2010, which the COA said violated Republic Act No. 7160, or the Local Government Code of 1991. It says that “no ordinance providing for a supplemental budget shall be enacted except when supported by funds actually available as certified by the local treasurer.”

“The bloated figures appear to be made to conceal the fact that various projects, including the (parking building)… were implemented even without the actual release of the loan,” the COA said.

The COA also confirmed that the contracts for the five phases of the parking building construction awarded to Hilmarc’s Construction Corp. “were not an outcome of actual competitive bidding.”

It said the local bids and awards committee violated RA 9184, the Government Procurement Reform Act, by giving “undue advantage” to Hilmarc’s.

The younger Binay has denounced the release of the COA report, which he said was timed to coincide with his father’s campaign for the presidency.

Binay’s United Nationalist Alliance (UNA) Thursday warned COA that it may be held liable for the release of the incomplete special audit report, saying this is prohibited during the election period.

UNA president Toby Tiangco said he wrote the COA on Feb. 21 requesting it to abide by its rules, which bar special audits against candidates in the 2016 elections.

He also reminded that parties involved in COA audits should be given the chance to comment on any findings, otherwise the body will be “violating due process and the rights of individuals.”

In a statement, Tiangco said he had information that “a PR consultant working for the Ombudsman provided copies of the COA report to select authorities.”

“To this we ask why, if the case against us is strong, would there be any need for underhanded tactics?” Tiangco said.

Sen. Gregorio Honasan, Binay’s vice presidential running mate, said it would serve public interest if COA Chair Michael Aguinaldo would state that the special audit was “procedural” and not meant to single out Binay.

“It will help to defuse the highly charged political situation,” he said. With a report from Christine O. Avendaño