MANILA- The city government of Makati said Thursday loan payments it made last year to the Land Bank of the Philippines are not being questioned by state auditors for legality.

Makati City Administrator Claro Certeza clarified that the Commission on Audit did not flag any of the city's loan payments in its report and merely made a recommendation on where the payments should be recorded.

“COA's audit findings were limited to recommendations as to where the loan payments should be recorded. Should the payments to Land Bank be charged to the Development Fund or the General Fund? The Makati City government squarely addressed these concerns," he said in a statement.

"There was no question of impropriety or irregularity as in fact the city government was given a clean bill by the COA," he added.

Certeza issued the clarification following reports that state auditors criticized the city government's use of P391.491 million of its development fund for the amortization of loans pertaining to nine projects not meant for social and economic development in the city.

The funds, according to the COA report, were used for the Makati City Hall Parking Building, improvement of the University of Makati, and improvement of the Koliseyum ng Bayan, among others.

• COA questions Makati’s use of P391-million development fund for loans payment

Certeza clarified that the projects cited in the COA report were not undertaken by Mayor Abigail Binay and that the loan was merely "inherited" by the current city government.

"We only inherited the Land Bank loan obtained by the previous administration and we are paying Land Bank religiously as required by law,” Certeza said.