Fernando was reacting to statements made by Rep. Magtanggol Gunigundo I, who threatened to initiate moves for the slashing of the P2-billion MMDA budget if no justification can be made.
The lawmaker has been at the forefront of calls for the abolition of the MMDA.
Gunigundo accused Fernando of spending much of the MMDA budget in the hiring of traffic enforcers and consultants.
Fernando described Gunigundos claim on the new hirees as exaggerated, explaining there were actually more employees terminated.
He pointed out that some 200 MMDA employees have been let go when he assumed his post as chairman.
MMDA assistant general manager for operations Rogelio Uranza said Gunigundo may have been referring to the 500 new traffic enforcers hired during the term of Fernandos predecessor Benjamin Abalos Sr.
Uranza said the hiring of the 500 men was authorized by President Arroyo.
The Valenzuela congressman also criticized Fernando for spending too much of his time in spreading propaganda rather than looking for a possible landfill for Metro Manila.
Fernando argued that there was nothing wrong with his propaganda, which he said was for the purpose of development, and not politics.
"There are two kinds of propaganda political and developmental. What I am doing is for the promotion of a legitimate program. I am sure that its not political propaganda," the MMDA chief said.
The MMDA is scheduled to have its next budget hearing within this month. Gunigundo is a member of the House appropriations committee.
Gunigundo said that he would not hesitate to cut the budget of the MMDA in half if Fernando fails to explain satisfactorily how it was spent.
"The good congressman wants to be clarified so we will try our best to do so for his satisfaction," Fernando said.