VP Binay, son face charges over ‘fraudulent’ UMak-STI deal

Lawyer Renato Bondal on Tuesday filed plunder and graft charges against Vice President Jejomar Binay and his son, suspended Makati Mayor Junjun Binay, for the alleged fraudulent deal between the University of Makati (UMak) and the Systems Technology Institute (STI).

Interviewed after the filing, Bondal said the Philippine Health Educators (PHEI), which the local government and STI created to manage UMak's College of Nursing, was established just to "take money from the school system in Makati."

"It was not necessary," he told reporters at the Office of the Ombudsman.

Bondal said UMak incurred a "double whammy" when it paid professional fees to the STI even though STI is already receiving dividends.

He said from 2006 to 2015, a total of P127 million of professional fees was paid by the PHEI to STI, while on the same period, it also received P110 million cash dividends.

"Kaya nga may joint venture, bakit magbabayad pa ng professional fees?" he asked.

Bondal also questioned the large tuition of UMak's College of Nursing, which supposedly ranged from P32,850 to P40,000, whereas the other colleges' tuition is at P1,500 per semester for Makati residents and P3,000 per semester for non-residents of Makati.

He said despite the high tuition, there was no improvement in the program.

Respondents

The PHEI was established on December 17, 2003 between UMak, represented by the elder Binay who was then Makati mayor, UMak President Tomas Lopez, the late Ospital ng Makati Director Dr. Ernesto Santos, and STI, which was operated by Eusebio Tangco, Atty. Monico Jacob and Annabelle Bautista.

Bondal explained that UMak and STI each had 40 percent of shares of the PHEI, with Dr. Jack Arroyo Jr., receiving 20 percent.

"What is surprising, however, is that private respondent Dr. Jack G. Arroyo, Jr., who is not connected with either UMak or STI and whose only connection with the parties is that he is the friend of public respondents, was allocated twenty percent (20%) of the shares of PHEI," he said.

Bondal said Binay, Lopez, Tangco, Jacob, Bautista, and Arroyo had committed plunder, malversation of public funds, graft, and violation of Republic Act 9784 or the Government Procurement Reform Act.

The younger Binay, meanwhile, was named respondent for allegedly condoning the agreement, Bondal said.

"While public respondent Jejomar Erwin “Junjun” S. Binay only became City Mayor of Makati in 2010, during his term as Mayor, he in fact condoned and/or tolerated the anomalous arrangement between UMak, PHEI and STI," he said.—KBK, GMA News