Senate told: VP ‘pocketed’ P1.2 billion

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VICE President Jejomar Binay allegedly got P1.26 billion in kickbacks from three service contracts entered into by the Makati City government with several companies owned by his suspected dummies.

This was based on the initial findings of the Makati City General Services Department that were presented on Wednesday during a hearing of the Senate blue ribbon sub-committee on allegedly anomalous transactions in Makati City involving Binay.

Violeta Lazo, officer-in-charge of the Makati General Services Department (MGSD), in her presentation said they found four red flags in transactions on Makati City’s Information Technology (IT), Janitorial and Security Services contract from 2004 to 2015 amounting to P5.06 billion.

Based on records presented to the Senate panel, from 2008 to 2014 Makati City allotted a total of P926.4 million for IT services, which involve maintenance of the computer system at City hall; P2.30 billion for janitorial services from 2005 to 2014; and P2.38 billion for security services from 2005 to 2014.


Lazo, during the hearing, disclosed that the Makati City government awarded the three service contracts to the same companies for the past ten years and 92 percent of the contracts went to one or two companies.

For the IT service contracts, Codeworks and Poweklink got 57 percent (P526,536,000) and 35 percent (P322,155,675) respectively.

Listed as incorporators of Codeworks were Marguerite Lichnock, Lily Crystal and Mitzi Sedillo, all connected to Gerardo Limlingan, one of Binay’s trusted men.

Lichinock is the wife of Limlingan while Crystal and Sedillo worked as his confidential assistants.

Powerlink has Limlingan, Edgardo Lacson and Hirene Lopez as officers. They all have links to the Vice president.

Lacson works as consultant on trade and finance of the Vice President while Lopez is the wife of Tomas Lopez, president of the University of Makati and a recent appointee to the Board of Trustees of Pag-IBIG fund.

Of the P2.3 billion janitorial services contract, Lazo said, Omni Security and Corporate Solution Management and General Services (CSMGS) got 83 percent of the P1.9-billion contract.

Omni, which include Lichinock and Lopez as directors, got a total of 1.33 billion from 2005 to 2012 while CSMGS got P570 million from 2013 to 2015.

Omni security also cornered P1.7 billion or 71 percent of the security services contract from 2005 to 2014.

Lazo said they also found that companies who won the contracts have the same owners like Omni and CSMGS, which both have Lopez, Bernadette Portallano and Aida Alcantara as incorporators.

The MGSD also suspects collusion in the bidding process for the security services because Omni Security and Vican Security are the only companies competing for the contract.

They also learned that one of the representatives of Vican is also one of the owners of Omni who is Alcantara.

From the P5.6 billion worth of service contracts, Binay allegedly got more than P1.2 billion in kickbacks, according to engineer Mario Hechanova, former head of the MGSD.

In a separate presentation, Hechanova said at least P648 million was earned from the security services and another P612 million from janitorial services in 10 years.

The amount was drawn from the alleged “ghost” personnel, which was estimated to be 10 percent of the total number of declared employees in the security and janitorial services.

But Sen. Antonio Trillanes 4th said the amount may be even higher because the figures do not include the earnings from the IT services.

Also during the hearing, the head of the Makati Action Center revealed that 40 percent of the senior citizens enrolled in city’s Blu card program were ghost beneficiaries, based on a survey conducted in seven villages in the city.

Arthur Cruto said they recently completed their surveys in five barangay– Carmona, Singkamas, Santa Cruz, South Cembo and Cembo.

Cruto added that they found that an average of 41 percent of senior citizens listed on the official record of the Makati Social Welfare and Development were either not included in the voter’s list of the Commission on Elections or not found in their given addresses.

He said that based on the MSWD record, the number of registered senior citizens in
Makati is bigger that than national average of senior citizens.

The Philippine Statistics Authority’s 2010 data showed that there are 6.26 million senior citizens out of 92.1 million Filipinos.

But in Makati City, there is a total of 67,429 registered senior citizens or about 12 percent of the total population of the city.

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8 Comments

  1. This show justice is slow and corrupt,Mr.13%crook VP Binay should have been in jail for plunder long time ago.Solution is for the military to take over so justice can be swift and firing squad for plunder if found guilty then election after the military clean up the government of crooks.

  2. This realization cannot be changed Binay. You have nothing to do with that…your fault why the trust cannot be given totally to your governance…not just simply criticizing you those have bases …they gather evidences against you.

  3. Lest you perceive me as pro Binay..I am not nor for any of these politicians but nothing has been proven anything yet beyond reasonable doubt so why are you people judging Binay? Why not wait for the court to review all the evidence and rule on this instead of you people condemning the man? If you think Binay is an evil man, aren’t the people pre- judging him equally evil? It would be embarrassing if the court prove him innocent of wrong doing..nagkasala pa kayo!!

    • dio san pedro on

      So all these people who provided sworn testimonies against him on the Philippines senate are all liars.

      I admire how tactically smart the senate are conducting these hearings. The hearings will continue and will produce even more wrong doings from the VP. The goal is that by doing this, VP Binay’s support from the masses will eventually evaporate or bring it to a minimum. Although there are enough evidence, he will not be charges with plunder for the time being for fear that he will gather the sympathy of the people. But if it looks like that he will win the election, then plunder charges will be brought against him. Even if VP Binay wants to, he can’t afford to quit now. His family and his life is at stake. With his assets frozen and backers in Makati anticipating a losing battle, VP Binay is alone and doomed. There is no escape. Jail time is coming for father and son.

  4. The Philippines is a corrupt third world country thanks to leaders like Binay.

    Our once great country now has a poor international business reputation due to rampant corruption perpetrated by the same individuals time and time again.
    Too many areas in the Philippines need better hospitals, power generation, and infrastructure investment which western companies bring to market, however, corruption impedes investment, it impedes growth

    The sole blame lies on the voters who take these politicians dirty cash for unethical votes. Most of our politicians belong in prison, not political office.

    President Aquino has done nothing to address our real problem which is corruption.
    Both President Aquino and Mar Roxas have wasted their terms and neither have lived up to the promises they have made to the Philippine people.

    Nothing has improved and corruption has gotten worse. The same corrupt people continue to steal with impunity. Mar Roxas already has had his chance to make positive change, however he blew it!

    Honestly and sadly, we would be better of outsourcing government to foreigners.

    • Thanks too! to the most corrupt Aquino and Roxas LP yellow regime for pocketing billions and trillions of public funds via DAP-PDAF and donations of poor victims of the 2013 Yolanda super typhoon.

  5. With the preponderancy of evidences so far presented by different witnesses that included current officers and employees of the Makati government, the people are wondering why no formal charges have been filed with the Sandiganbayan against Vice President Jejomar Binay and his cohorts in plundering the coffers of Makati City.