The Makati City government filed yesterday with the Singapore International Arbitration Center (SIAC) a motion to review and abolish a settlement agreement with the controversial Makati Subway project worth P8.96 billion contracted by the previous administration.
“We are set to submit our position on the settlement agreement. Kindly await further advice,” said city legal officer Ava Mari Ramel.
“We ask for your understanding and we sincerely apologize for not giving updates at this time regarding developments on the settlement agreement,” she added.
The city council has passed a resolution authorizing the previous administration to enter into a settlement agreement with Philippine InfraDev Holdings Inc.
The council, acting on the arbitration proceedings initiated by InfraDev before the arbitration tribunal, has authorized the previous administration to enter into and sign the settlement agreement with InfraDev which was approved and signed on June 23, or merely seven days before the term of all elective officials ended.
Ramel, in a letter addressed to the office of the mayor said InfraDev earlier invoked the confidentiality of matters related to the settlement,. “This matter has also been raised by InfraDev before the arbitral tribunal,” she added.
Mayor Nancy Binay has instructed the city’s law department to prepare the necessary documentation to formalize the official position of the city government with the SIAC.
“We can hardly accept a settlement of this magnitude without transparency, due diligence, and legal safeguards. In situations like this, the public often suffers,” Binay stressed.
Last Thursday, Binay’s sister and former mayor Abigail Binay held a press conference and denied the alleged midnight deal settlement. She promised to explore all legal options to mitigate potential damages and hold responsible the parties accountable.
The ex-mayor stated that the current Makati administration could have pursued the motion without generating so much public attention.
“Rescinding the settlement agreement is within their rights, but they must be prepared for the consequences of this decision,” she said.
