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PIA Press Release
2006/09/28

Makati mayor, 11 others charged with graft at Sandiganbayan

Quezon City (28 September) -- THE OFFICE of the Ombudsman has filed a criminal case before the Sandiganbayan anti-graft court against Makati Mayor Jejomar Binay, his wife Elenita, and nine others for the alleged irregular purchases of office partitions and furniture worth 232 million pesos from 1999 - 2001.

The case stemmed from former Makati vice mayor Roberto Brilliante's complaint before the Ombudsman, which cited a Commission on Audit (COA) report on the alleged anomalous contracts involving the purchases.

The COA team discovered that the biddings and awards through negotiation/repeat order of five Purchase Orders (POs) to OGII and ACII in the total amount of 231,576,189.71 pesos were highly irregular.

Records showed that last Sept. 15, 1999, the committee on awards informed the OGII that it had won in a public bidding conducted on Sept. 17, 1999 for the procurement of office partitions and furniture for the new Makati City Hall Building. This was covered by PO No. 9989 in the total amount of 72,065,037.25 pesos.

From December 1999 to February 2000, these officials "willfully, unlawfully, and criminally awarded through a Repeat Order," based on the alleged simulated/rigged bidding, to the same company the procurement of office partitions and furniture amounting to 13,253,587 pesos covered by PO No. 10473.

Relative to PO No. 11106 in the amount of 21,700,000 pesos, these officials conducted a "public bidding" on Aug. 16, 2000, participated in by ACII, OGII, and Vonjaspher Enterprises. However, it was found out that these suppliers were owned and managed by the same person.

Despite the conduct of biddings, other contracts were awarded to the same group, which the Ombudsman described as "unjustified negotiated purchase."

The COA Team also discovered that the purchases were overpriced by 53,905,638.54 pesos, and that there was also excessive buying worth 50,142,558.56 pesos, both of which had resulted in undue injury to the government worth 110,249,869.07 pesos. (PIA) [top]

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