Got a tip? Send it to us at manila@coconuts.co.
Is this the bitter truth?
Vice-President Jejomar Binay’s children are in business with Kim Tun Chong, the sole proprietor of a business that supplied birthday cakes for senior citizens of Makati, according to records of the Securities and Exchange Commission (SEC).
Business partners
In the Court of Appeals’ (CA) May 11, 2015 order freezing bank accounts and other financial instruments of Vice President Binay and other family members and close associates, it was revealed Sen. Nancy Binay, Rep. Mar-Len Abigail Binay, and Makati Mayor Junjun Binay were among 7 incorporators of Millennium Food Chains Corp., which was registered with the SEC on May 16, 1997.
The three Binays were also identified as officers of Millennium as of 2014, according to the corporation’s general information sheet.
Chong is listed as incorporator and treasurer of the same corporation as of 2014. The other incorporators are Erlinda Chong (Chairman/President), Lilia Chavez and Angelico Salud.
Irene Chong and Kimsfer Chong are listed as corporate secretary and director, respectively, as of 2014.
“From the foregoing, it appears that Millennium is a business entity of the Chong family, with three children of VP Binay as directors,” the CA said.
It also said Millennium’s audited financial statements from 2006-2010 show that the corporation derived minimal income from its operations. It did not declare dividends from 2006 to 2010, it added.
Sweet ties
The CA’s freeze order plus supporting documents back claims made by former Makati Vice Mayor Ernesto Mercado that the Binay family has close ties with the Chong family.
Mercado told the Senate Blue Ribbon sub-committee hearing that the Chongs were Senator Nancy Binay’s partner in supplying birthday cakes to senior citizens of Makati City.
Mercado alleged that Binay was supplying cakes through Erlinda Chong. He said Chong’s husband is a close friend of former Makati Mayor and now Vice-President Binay.
Another former Makati official also linked Senator Binay to the cakes being distributed by the Makati local government to senior citizens.
Engineer Mario Hechanova, the former head of Makati City’s general services department and vice chairman of the bids and awards committee, told the Senate Blue Ribbon sub-committee that no less then Mayor and now Vice President Binay followed up on the payment for the cakes that were being delivered to the senior citizens of Makati.
He claimed the mayor was following up on the payment because it would go to his daughter, Nancy.
“Minsan po pinatawag niya ako at ang sabi niya sa akin: ‘Mario, ano ba ang nangyayari dun sa payment sa cake ni Nancy,'” he told the Senate sub-committee.
He said he once had to hold off payment because the list of senior citizens submitted by the social welfare department did not have signatures.
Asked if he believes that Binay’s daughter supplies the cakes, Hechanova said: “Sa palagay ko ganun po kasi ang fina follow-up yung bayad e.”
The cakes supplied to the Makati government are distributed to the city’s senior citizens during birthdays and golden wedding anniversaries.
What Nancy said
Senator Binay, last year, denied the accusation, saying the company supplying the cakes is Cups & Mugs Kitchenette & Catering Services.
Her sister, Congresswoman Abigail Binay, said Cups and Mugs Kitchenette also runs the cafeteria in Makati City Hall.
Asked if she or her siblings own any company that provides services to the local government of Makati, Senator Binay said in September 2014: “No. Wala eh. Bawal yun sa amin. Bawal naman talaga. You cannot enter into business with city hall because that will be a conflict of interest.”
She also denied that her family owns dummy companies that bag lucrative contracts from Makati. “You have to prove the dummy,” she said.
In an interview on radio DZMM on September 4, 4014, Senator Binay called Hechanova a “liar” for saying she was involved in the gift-giving activity.
“Sinungaling ho siya. Hindi ho totoong ako ho ang nagsusupply ng cake sa mga senior citizens dito sa Makati,” Binay said.
“I think that the next business na papasukan ko, magtatayo na nga ako ng bakeshop,” the senator joked.
Tax evader?
Last December, the Bureau of Internal Revenue (BIR) filed a P46.6 million criminal complaint before the Department of Justice against Cups & Mugs Kitchenette owner Kim Tun Chong for willful attempt to evade tax and deliberate failure to supply correct information in his annual income tax returns for taxable years 2009, 2010 and 2011.
Cups and Mugs Kitchenette had supplied birthday cakes distributed by Makati City Hall for senior citizens, and also has a contract to manage the cafeteria at Makati City Hall and Ospital ng Makati from 2009 to 2011.
The BIR said a preliminary investigation showed that Cups & Mugs was paid by Makati City government a total of P107.64 million in the three year period — 2009 – P35.94 million; 2010 – P42.11 million; and 2011 – P29.59 million.
However, despite earning millions, the BIR said Chong substantially underdeclared his correct income and deliberately failed to pay the correct taxes.
Based on BIR records, Chong declared a total gross income of only P43.23 million in his AITR for the three-year period — 2009 – P14.17 million; 2010 – P12.97 million; and 2011 – P16.08 million.
The Chong connection
The Binay family’s ties with the Chongs are not limited to the supply of cakes for the city’s senior citizens. The Chong matriarch is also accused of being used as a front by Binay to buy a prime piece of land in Makati for only P17.75 million.
In his testimony before the Senate Blue Ribbon subcommittee last September, Mercado accused Binay of using Erlinda Chong as a dummy to purchase the 8,877-square meter land in Barangay Comembo, Makati in 1999.
He said the property was earlier leased to Meriras Realty and Development Corporation and was later purchased by Chong from the government for only P17.75 million.
He said the property is now worth roughly P1 billion.
The CA freeze order said at least three people accused of being “dummies” of Binay are directors of Meriras Realty as of 2013. They are Gerry Limlingan, Limlingan’s wife Marguerite Lichnock, and Chong.
Five members of the Chong family – Imee, Kim Tung, Irene, Kimsfer and Irish – are also listed as majority stockholders of the corporation.
In his testimony, Mercado said the land at Barangay Comembo is divided into four parcels.
He said one portion, spanning 3,730 square meters, was bought by the Manila Mission Church of Jesus Christ of Latter-day Saints for P60,000 per square meter, equivalent to over P220 million.
But he noted that Erlinda Chong was not the one who transacted with the Church of Jesus Christ of Latter-day Saints. Instead, it was Limlingan who transacted with them, he said.
He said he was present in some of Limlingan’s meetings.
“Eh kung may-ari siya (Erlinda Chong), dapat siya ang nakaharap sa meetings,” he said. “Si Mr. Limlingan ang humawak ng lahat ng pera.”
Mercado earlier identified Limlingan as a close friend and financial wizard of Vice President Binay.
The three other parcels of land, meanwhile, are still under the name of Erlinda Chong. Standing on these lots are wet and dry markets, grocery stores, and other businesses, he said.
Text: David Dizon, ABS-CBNnews.com (wth a report by Kathlyn dela Cruz)
Photo: Jojo Binay Facebook page
This article has been re-published with permission from ABS-CBNnews.com.
