5th plunder rap filed vs Binay over BSP land deal

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SCOUT’S HONOR Former Makati City Vice Mayor Ernesto Mercado, clad in a scout’s uniform, raises his hand to attest to the veracity of his plunder complaint against Vice President Jejomar Binay and other Boy Scouts officials. PHOTO BY MIKE DE JUAN

SCOUT’S HONOR Former Makati City Vice Mayor Ernesto Mercado, clad in a scout’s uniform, raises his hand to attest to the veracity of his plunder complaint against Vice President Jejomar Binay and other Boy Scouts officials. PHOTO BY MIKE DE JUAN

President Jejomar Binay and several other officials of the Boy Scouts of the Philippines are facing another plunder complaint before the Office of the Ombudsman in connection with the allegedly anomalous sale of a BSP property in Makati City (Metro Manila).

Former Makati Vice Mayor Ernesto Mercado, the complainant, on Tuesday said the so-called Malugay property was appraised at P1 billion in 2005.

“Until now the BSP has not received anything from the sale of this land. They sold it a very cheap price, at P600 million. But the BSP has not received even that P600 million,” Mercado told reporters in Filipino.

“I leave it to the Office of the Ombudsman to determine how much he [Binay] earned from this anomaly. But what I am saying here is that it was Vice President Binay, as President of the Boy Scouts of the Philippines, who led the sale of this land at a very low price,” he said.


The camp of the Vice President also on Tuesday said if anyone was to be charged over a land deal between the BSP  and Alphaland Corporation, it should be  Mercado.

“If there’s somebody who has to be indicted for the Alphaland deal, that should be ex-Vice Mayor Mercado. It’s clear that it was Mercado who dealt with Alphaland and even asked for a bribe. That information came from Alphaland official Mario Oreta,” Rico Quicho, the Vice President’s spokesman on political affairs, said.

Quicho added that it has been established in the Senate blue ribbon sub-committee hearings that Mercado sought personal benefit from Alphaland, and that the officers of the BSP and Alphaland have categorically denied Binay’s participation in the  transaction.

Mercado’s complaint is the fifth complaint accusing the Vice President of plunder.

Lawyer Renato Bondal filed two plunder complaints before the office last year against Binays and his son Makati City Mayor Jejomar Erwin “Junjun” Binay Jr. and several others–one in connection with the allegedly overpriced P1.3-billion Makati Science High School Building, and another in connection with the New Makati City Hall Parking Building, which was allegedly overpriced by P2 billion.

This year, Bondal also filed a plunder complaint against the two Binays and several other respondents for allegedly misappropriating P547.42 million funds meant for the University of Makati’s College of Nursing (now College of Applied Health Studies).

He also filed a plunder complaint against the elder Binay and several others over the alleged conversion of a public property in Barangay Comembo in Makati City to his private ownership.

Aside from Binay, the BSP national president, also named respondents in the 5th case were: Wendel Avisado, Marikina City (Metro Manila) Rep. Del de Guzman, Arturo Umbac Jr., Miguel de Jesus, Enrique Lagdameo, Pedro Destura, Dale Corvera, J. Rizal Pangilinan, Pepito Carpio, Maximino Edralin Jr., Jose Eduardo Delgado, Romulo Brillantes, Leyte Rep. Remedios Petilla, Henry Dy and Jose Ma. Gastardo.

All of the respondents are members of the BSP National Executive Board along with respondent and former Bulacan governor Roberto Pagdanganan, a   member emeritus, according to the complaint.

The BSP became the owner of the property in 1975 by virtue of a donation by BF Goodrich Corp. subject to the latter’s right to lease the property for 25 years renewable for another 25 years, it said.

When the first 25-year lease was expiring, the BSP, which was then under former Manila Mayor Alfredo Lim, and BF Goodrich disagreed on the renewal.

The BSP said  with BF Goodrich leaving the county, there was no need for it to continue leasing the property.

“The BSP lost the case and in the Court of Appeals in 2005 respondent Binay who in the meantime took the reins of power in BSP, proposed to Silvertown, which Silvertown accepted, to sell the Malugay property, splitting the proceeds at 60 percent [BSP] to 40 percent [Silvertown]. Appraisal of the property at around this time was P1 billion as earlier mentioned and the sharing scheme was thus P600 million (BSP) and P400 million (Silvertown). Presumably, this 40 percent was the value of Sime Darby’s remaining lease up to 2026 and its then dilapidated warehouses/equipment, which was/were really not worth much,” Mercado said.

BF Goodrich, which was renamed Sime Darby Philippines, incorporated Silvertown Property Developers Inc. in 1991 to which it assigned its rights and interests over the Malugay property, according to the complaint.

“But the Malugay property was not sold. On June 2, 2008, ADI [Alphaland Development, Inc.] bought Silvertown lock, stock and barrel for P400 million only. This sale was three years after the Malugay property was first appraised in 2005 to be valued at P1 billion and the appraisal used was still that first appraisal,” Mercado said.

Later that same month, ADI and the BSP entered into a joint venture agreement to develop the Malugay property with a sharing scheme of 85 percent for ADI and 15 percent for the BSP.

But Mercado further  said, “Continuing with the use of this 2005 valuation of P1 billion allowed the undervaluation of ADI’s corporate guaranty. This meant that BSP will be paid only P600 million in the event the joint venture development is not completed as planned or the loan to finance the development is not paid.”

“Unfortunately, the guaranty is worth P600 million only. Never mind that the property has appreciated many times over — to repeat, just looking at the 2010 loan value of P1.750bBillion,” he added.

The complaint also cited Alphaland Makati Place Inc. (AMPI) President Mario Oreta, a lawyer, who testified during the Senate investigation that the BSP interest was already P3 billion representing 15 percent in the sharing scheme.

“This P3 billion value the respondents ignored to the continuing prejudice of the BSP. The respondents never even asked for the increase of its corporate guaranty which to this date is only P600 million,” it said.

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10 Comments

  1. goodbye binay and family. welcome to Bilibid munti. pano ba naging property nyo ang lupa sa comembo na ang may ari ay gobyerno at phil army engineering battalion. paki explain lang po

  2. I watched a lot of the proceedings by the senate panel looking into the agreement between the bsp & alphaland & whoever & its a very clever con. The normal man would have never got to the bottom of this scam but i give praise to the senators investigating it & hopefully all will be charged ( binay included ) & again hopefully all will go to jail for a long time. I have nothing against people getting rich, but i would execute those who con steal & cheat their way to millions if not billions of pesos.

  3. y’all, let’s all wait for the case(s) to prosper first.
    whatever happened to, presumed innocent until proven guilty.
    its not like any of “them” are clean, anyway

  4. Maria Stevens on

    BINAY Is an out and out bloody crook without any sense of shame….the sooner he is sent to prison the better for all of us.

  5. I think it’s the other way around. One or two plunder raps may show good faith in filing corruption charges. Reaching five or more would be asking too much. It seems though every transaction that involves a big sum is subject to a plunder charges with this guy Mercado, transactions which are naturally within the sound business judgment and discretion of the organization heads. Complicated deals are exposed but summarized for simpletons to fit a conclusion, a bad one. It feels more like the complaint is just a formality and the end goal is for the allegations to reach the public eyes and ears. His wearing a boy scout uniform hints that he wants this attention. I guess the crusade to crucify the Binays is far from over.

  6. ronto caniada on

    What the hell, How come Binay he still on the run campaigning. No wonder Bong-Bong Marcos scrap Binay’s offer to become his teammate. Bong-Bong he knows that Binay’s in deep trouble.
    I can’t wait to see Binay’s joining the two Senators in Camp Crame.

  7. One or two plunder raps maybe ‘politically’ motivated, but five is another story; Binay has to clear himself. Else, we may might have ‘another’ corrupt’ president.

  8. Nancy Bulok Cake on

    Quicho and Ilagan should STOP defending the evil deeds of the Binays. From the PDI, “Budget Secretary Florencio “Butch Abad on Tuesday congratulated Commission on Audit Commissioner Heidi Mendoza on her appointment as head of the United Nation’s internal watchdog body”. Heidi Mendoza had been energetic public servant that it included in his audit Binay’s wife Elenita Binay for amassing wealth by overpricing projects in Makati when she was a mayor. Nancy Binay in fact tried to humiliate Mendoza during the CA hearings but Mendoza stood on her ground that the Binays are really corrupt. Now that Mendoza is promoted to a position in the UN, it is suffice to say that the Binays are really corrupt. Of course YES. To the UNA defenders of the Binay family, stop pretending and defending the Binays for the WRATH of GOD might drop on you as heavy as an atomic bomb with ailments with no cure. Look at the Remullas, they stopped defending the Binays because they realized how just is our GOD.

    • Nancy Bulok cake..May napatunayan na bang nagawang evil deeds si BINAY…Sumama ka kay mas evil na Mercado at patunayan ninyong may kasalanan si BINAY..Nagpanggap ka pang si NANCY ..o bulok talaga ang cake mo na kinakain ni Mercado..tanong ko lang..HEHEHEHE..