BSP denies kickback; Alphaland to sue

MANILA, Philippines - The Boy Scouts of the Philippines denied yesterday the claim of former Makati City vice mayor Ernesto Mercado that Vice President Jejomar Binay received P188.9 million in supposed kickbacks from a land deal between the BSP and Alphaland Corp.

Alphaland had made a similar denial and said it was Mercado who had asked for a kickback. The company said it was readying a lawsuit for damages against the former vice mayor.

BSP senior vice president and acting secretary general Wendel Avisado appealed to all concerned not to involve the institution in their political agenda.

“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, together with Mr. Enrique Lagdameo, who is the BSP national treasurer,” Avisado said.

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

Avisado also questioned the timing of Mercado’s revelations and said his 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?” the BSP official said.

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

Avisado said the BSP also welcomed the subpoena to be issued by the Senate Blue Ribbon subcommittee requiring all BSP national executive board (NEB) members to attend its next hearing.

“The BSP has nothing to hide and it is also confident that in the end the truth will come out,” he further said.

Avisado said the agreement 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 chairman of the corporate assets management committee of the BSP,” he said.

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

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

Upscale property firm Alphaland Corp. has also denied it gave the vice president or any government official kickbacks in connection with the commercial development of a property in Makati.

Alphaland called Mercado’s allegations “baseless and false” and, as such, said it intends to sue the former vice mayor for criminal libel defamation and claim at least P100 million in damages.

“We confirm that there was a deal between Alphaland and BSP in connection with that one-hectare prime property in Makati City (located at Malugay Street corner Ayala Avenue Extension) but the deal was entirely aboveboard,” Alphaland said.

“In sum, Alphaland vehemently and categorically denies Mr. Mercado’s lies and falsehoods,” the firm added.

Meanwhile, Mayor Jejomar Erwin Binay appealed for fairness in the conduct of the ongoing investigation on the alleged overpriced Makati City Hall Building II.

This was in response to Senate Blue Ribbon committee chairman Sen. Teofisto Guingona III, who gave him and six other officials a “final call” to respect and heed the subcommittee’s subpoena for them to attend the hearings.

“With all due respect to the Senate, all I am asking for is due process. If you may recall, I appeared before the subcommittee and answered the questions from the senators for six hours. However, I was either cut off or denied the chance to reply. The senators simply wanted to humiliate me,” the Makati mayor said in a statement.

He also questioned the unfair treatment of the city officials by the subcommittee, pointing out that witnesses who were repeatedly caught lying under oath have gone unpunished.

“All I am requesting is for the senators in the subcommittee to accord to all persons summoned to their hearings their rights based on the Constitution and jurisprudence. While the senators threaten me with contempt, they have not taken any action to discipline their witnesses who have lied under oath several times. This is most unfair,” he said.– With Mike Frialde, Richmond Mercurio