Binay sisters’ feud heats up over Makati subway project

MANILA, Philippines — The long-running feud between former Makati mayor Abby Binay and her sister, Nancy Binay, heats up again, with the former telling her successor to brush up on financial literacy first before hurling accusations over the aborted subway project.

Nancy’s one-week-old administration is flagging the alleged midnight deal that Makati struck with Philippine Infradev Holdings Corp., the private proponent of the intracity subway system, which was later deemed “economically unfeasible.”

City budget officer Aileen Mallillin certified on July 3 that there is no available appropriation in the 2025 budget to cover the settlement for the project amounting to $160 million or P8.9 billion.

“The settlement not being in the 2025 budget doesn’t mean that Makati has no funding to pay for it,” Abby told reporters yesterday.

The former mayor said Makati had cash in bank worth P30 billion as well as P243 billion in assets when she left office on June 30.

She reiterated that the city council could pass a supplementary budget if no appropriation existed.

City legal officer Ava Marie Ramel has described the settlement as “legally flawed” and “grossly disadvantageous.”

She said the city government would file a motion on July 11 before the Singapore International Arbitration Center (SIAC) to rescind the settlement.

According to Abby, Nancy’s transition team had no qualms upon receiving a copy of the settlement after Makati forwarded the document to SIAC on June 23.

“They had no response,” the former mayor said.

Abby insisted that the city would be richer if the settlement proceeds as the local government would only need to cover what Infradev had invested and would gain full ownership of the Makati City Subway Inc. valued at $1.6 billion.

In the settlement papers, Makati and Infradev tapped auditing firm PricewaterhouseCoopers to compute the arbitrary amount, avoiding costly and lengthy arbitration.

In a disclosure to the Philippine Stock Exchange on Tuesday, Infradev president Georgina Monsod confirmed that her firm had initiated arbitration proceedings in April before the SIAC. Both parties are waiting for the tribunal’s resolution.

The former mayor explained that before the settlement could take effect, the SIAC must issue a consent award and obtain approval from the Commission on Audit and the Makati city council.

Abby said if the mayor refuses to push through with the subway project, she could just sell MCSI and profit from it.

“In any angle, Makati’s better off with the settlement agreement,” the former mayor said.

‘Snubbing for 2 decades’

Abby said the settlement could have been withdrawn without fanfare, but she accused Nancy’s camp of exacerbating the issue.

“This is really to smear me and undermine my nine-year legacy,” the former mayor said.

The settlement is becoming another flashpoint in the years-long tussle between the Binay sisters.

Abby said she has not spoken to Nancy in two decades and has no reason to start now.

“I don’t want to call her because she might say I’m overconfident or sabotaging her. When you ask someone for advice, there’s that level of trust; maybe she has none, that’s why she’s not calling,” the former mayor said.

After stepping down from public office for the first time in 18 years, Abby challenged Nancy for the next elections, saying,  “See you in three years.”