Former Makati City mayor Abigail ‘Abby’ Binay accused the current administration of making unfounded claims regarding the settlement agreement with the developer of the Makati Subway Project, which was established during her tenure.
“Unfortunately, some media outlets have made baseless assertions that the terms of the settlement are allegedly one-sided, based solely on the conclusions drawn by one party. Isn’t this a form of one-sided reporting?” she said in a statement.
Her statement came in response to her sister, current Mayor Nancy Binay, planning to file a motion with the Singapore International Arbitration Center (SIAC) to review and potentially rescind the settlement agreement related to the controversial Makati Subway project.
The agreement, valued at P8.96 billion, was signed by the previous administration.
Last month, the Makati City Council passed a resolution that authorized the former administration to enter into a settlement agreement with Philippine InfraDev Holdings Inc. (PhilDev).
This decision was made in response to arbitration proceedings initiated by PhilDev. The agreement was approved and signed on June 23, just seven days before the end of the term for all elected officials.
Abby Binay said the current administration could have pursued the motion without generating so much unnecessary attention.
“There is no need to make threats or to feed the media distorted or false information. I don’t typically defame or blame the administration via the media. I do not engage in exaggeration, instill fear, or spread falsehoods. If something needs to be addressed, I address it,” she said.
“Rescinding the settlement agreement is within their rights, but they must be prepared for the consequences of this decision,” the former mayor added.
Abby emphasized that the settlement agreement remains the preferable option. “Ate (Nancy) can call me for clarification if there’s anything they don’t understand. However, it appears that her advisers prefer confusion; they want to return to ignorance,” she noted.
The younger Binay dismissed claims that the city government would go bankrupt as a result of the settlement. “The truth is that this settlement will lead to greater financial stability for the city. In fact, it positions Makati to become the wealthiest local government unit in terms of assets,” she said.
“I suggest that the new administration improve its financial literacy. There is a difference between appropriated funds based on an approved budget and the actual cash of the city, which represents current-year collections and accumulated savings. Just because a sum is not included in the 2025 budget does not mean Makati lacks the funds for the settlement,” the former mayor noted.
Abby Binay also mentioned that she left City Hall with nearly P30 billion in the bank, and that the local government holds assets worth over P243 billion.
“With an investment of P60 million, Makati will gain a company with a net asset value of $1.6 billion. This means Makati will acquire assets worth more than 10 times the amount paid,” she explained.
“Additionally, the city will obtain the detailed engineering design, test results, studies, and all other assets of the subway company, enabling the new administration to proceed with the Subway Project. In short, Makati will own and have full control over the Subway Project,” added Abby.
The former mayor pointed out that, according to the Commission on Audit, Makati is the second richest local government unit.
“At this moment, we have assets worth over P243 billion. Adding the $1.6 billion from this agreement will make Makati the richest city in terms of assets. So, how can this be considered disadvantageous?” she asked.
Abby noted that the figure is based on the assessment from an independent auditing firm, Price Waterhouse Cooper, which represents the company’s investments in the joint venture as well as additional lands yet to be transferred.
She characterized the accusation that the agreement is one-sided and that Makati is at a disadvantage as baseless and slanderous.
In response to allegations that the settlement is a result of a “midnight deal,” Abby explained that the arbitration process is lengthy, even with a settlement agreement in place. “There is no basis for the current administration’s claim that this was rushed.
“The settlement agreement will still need approval from the arbitral tribunal based in Singapore. It will also require approval from the Commission on Audit (COA) and the City Council for the appropriation of funds for payment,” she said.
