Corona got P10-M ‘reduction’ in price of ‘damaged’ Taguig condo–witness

MANILA, Philippines – An official of Megaworld Corp. testified on Tuesday that the company gave a P10-million “reduction” to Chief Justice Renato Corona for a “water damaged” P14.5-million condominium unit in Taguig City.

“From P24 million, it’s basically P10 million,” said Noli Herandez, senior vice president for marketing and sales of Megaworld, when asked by private prosecutor Joseph Perez the reduced price  the company gave to Corona.

Hernandez was referring to a penthouse unit at The Bellagio in Taguig City that Corona bought in September 2008 for P14.5 million.

The witness said the original prize of the property was P24 million but because it sustained “water damage” due to a typhoon, Megaworld lowered the prize to P19.6 million.

Furthermore, Hernandez said that because Corona paid the property in less than a year, the company gave him a P5-million discount.

Senate President Juan Ponce-Enrile, who was presiding over the trial, explained that a reduced price was different from a discounted price.

But Senator Ramon “Bong” Revilla noted that 15 percent of P19.6 million was only P2.94 million so the amount of the property should have been P16.66 million and not P14.5 million.

“Nasaan ang diperensya na P2.1 million?” asked Revilla.

Hernandez said that on top of the 15 percent discount, Megaworld deducted a marketing fee of P1 million from the price and additional five percent discount which also amounted to P1 million.

“That was basically the only discount that I gave to the client,” said the witness.

In fact, the witness said Megaworld gave a 50 percent discount in two model houses – one was furnished and the other bare – also located in Mckinley hill in Taguig City.

“If I may be allowed to mention it because this is becoming quite unfair to us also,” he said.

“We have model houses in Mckinley Hill – two model houses – exactly the same lay out [but] due to some consideration, we were forced to sell them at 50 percent off,” said Hernandez.

Senate Pro Tempore Jose “Jinggoy” Estrada, who sits as one of the judges in the trial, saw nothing irregular about accepting a discount from property developers so long as there are no strings attached.

“Wala kasi when I was mayor as I have mentioned earlier on TV a while ago, there were a lot of condominiums that were being built, even being built by Megaworld. Inalok nila akong condominium, 30%, 20% discount, ang mahal mahal ng condominium noon, sige why not? Basta no strings attached,” Estrada said after the proceeding.

He even pointed out a statement by Senator Many Villar during the trial that a big developer –  the SM Development Corp – offered a 50 percent discount last March.

“Maybe they want to control the market. There’s nothing wrong. It’s business competition,’” Estrada added.

Also during the trial, senators questioned the witness about the cases involving Megaworld that had been filed before the Supreme Court.

Hernandez confirmed that there were two cases filed in court and that Corona was among those who decided on them.

But the witness said Megaworld lost in both cases.

“We lost big. We lost P47 million,” he said, responding to Senator Francis “Chiz” Escudero’s queries.

Hernandez said the only case Megaworld won in court involving a P5 million project was before Corona purchased the property from them.