Boy Scouts exec calls kickback claims ‘pure hearsay’

MANILA, Philippines—The Boy Scouts of the Philippines (BSP) on Friday denied the allegation of former Makati Vice Mayor Ernesto Mercado that Vice President Jejomar Binay received P200 million in kickbacks from a property deal between the BSP and Alphaland Corp. involving the development of a one-hectare prime property in Makati City owned by the BSP.

“The BSP is not aware of any transaction with Alphaland outside of the joint venture agreement that Mr. Mercado has signed, in his capacity as senior vice president of the BSP, with Mr. Enrique Lagdameo who is the BSP national treasurer, and the subsequent amendment and joint venture agreement and deed of sale that were signed by the succeeding officers of the BSP,” said BSP senior vice president and acting secretary general Wendel E. Avisado in a statement which the Binay camp sent to the media.

Binay, who has been the BSP president for the past 20 years, is facing new accusations of corruption involving BSP assets.

In a presentation before the Senate blue ribbon subcommittee hearing on Thursday, Mercado alleged that the Alphaland-BSP deal, which he said he signed on Binay’s orders, had disadvantaged the BSP and favored Alphaland because of the kickbacks that were allegedly paid to Binay.

“Mr. Mercado’s claim that Vice President Binay received about P200 million from the transaction with Alphaland Makati Place Corp. is pure hearsay unless he can prove it with competent evidence,” Avisado said.

Timing questioned

Avisado also questioned the timing of Mercado’s revelations, claiming that Mercado’s motivations were tainted with politics.

“If he is truly working for the welfare and interest of the BSP and if there were indeed irregularities involved, then why did it take him close to seven years before divulging it to the public?” he said.

“The BSP believes that all these are tainted with politics and the BSP will not allow politics to destroy it,” he added.

Avisado said the BSP would welcome the subpoena that the Senate blue ribbon subcommittee said it would issue requiring all of the members of the BSP’s national executive board to attend the next hearing.

Avisado said the agreement between the BSP and Alphaland was “entirely aboveboard and underwent the required process and procedure.”

“In fact, the agreement was signed by then Makati Vice Mayor Ernesto Mercado himself when he was the senior vice president and chair of the corporate assets management committee of the BSP,” he said.

‘Next PH president’

“He is aware that the agreement was thoroughly discussed and approved by the BSP National Executive Board (NEB), the intention being to make the property earn money for the BSP,” he said.

Avisado said BSP National Council, the organization’s highest governing body, authorized the NEB to execute the agreement.

Alphaland Corp., owned by businessman Roberto Ongpin, has denied having given the Vice President any amount and instead accused Mercado of having asked for kickbacks.

A “Biz Buzz” column item in the Inquirer that appeared in September 2013 reported that during the opening of the upscale Alphaland-developed The City Club, Ongpin announced, with the Binays in attendance, that Vice President Binay, no doubt, will be the next president of the country.