The Philippines' financial capital Makati has been plunged into chaos with two politicians claiming to be mayor, forcing courts to close and delaying government business during a bitter stand-off triggered by graft claims. Surrounded by hundreds of supporters, Makati mayor Jejomar Erwin Binay has been holed up in city hall since the ombudsman suspended him last week because of its investigation into his alleged corrupt practices.
Insisting the graft accusations are trumped up, Binay has refused to cede power to his deputy and rival, Romulo Pena, who insists he is now "acting mayor".
The power struggle is widely seen as a battle between the nation's ruling Liberal Party and main opposition.
Binay is the son of opposition leader, Vice President Jejomar Binay, while Pena is a member of President Benigno Aquino's Liberal Party.
Makati's courts closed for a day last week because of the crisis, and some judges have continued to postpone hearings to avoid the crush of Binay supporters outside the building, family spokesman Joey Salgado told AFP on Friday.
He also warned there was a looming crisis over who had the authority to sign the city's cheques, while some welfare recipients said they did not receive their benefits on time.
If banks do not honour cheques signed by Binay, street lamps and traffic lights will be shut down, taps in government buildings will run dry and garbage collection will stop, according to Salgado.
"This is a very dangerous situation, if their (national government's) actions result in delays in salaries, utilities," he said.
"Any perception of instability would have an effect on the country. They are sending the wrong signal to investors. Makati is the financial centre of the country."
From an adjacent old building, with hallways that reek of leaking toilets, Pena issued a memorandum on Friday to all city hall employees asserting his authority.
"All ordinances, official documents and official actions must be submitted and referred to the undersigned for approval and/or appropriate action," Pena said, referring to himself.
Makati is the country's largest city in terms of revenue, with 11.9 billion pesos ($265 million) in earnings from taxes and fees in 2013, according to government data.
The city hosts the country's stock exchange, 82 embassies and consulates, 506 bank offices and 246 business process outsourcing and technology companies.
The stand-off appears likely to drag on for weeks, with the Binay family against the suspension but Pena continuing to receive the Aquino administration's support.
While the power struggle is unlikely to affect big business in the city in the short term, it could affect the Philippines' image as a safe investment destination, Richard Javad Heydarian, a political science professor at the De La Salle University in Manila, told AFP. "Business can't be tied to political cycles," he said.
Binay's family has said the mayor's suspension is politically motivated as his father continues to dominate surveys to become the next president in 2016 elections, ahead of the Liberal Party's Interior Secretary Mar Roxas.
The Binays have ruled Makati since the restoration of democracy in 1986, endearing themselves to the masses with unparalleled benefits such as free college education, medicine, movies and birthday cakes.
The elder Binay capitalised on this populist theme to propel himself to the country's second highest post in 2010 and fortify a political dynasty that includes two other daughters elected to parliament.
True to the family's populist touch, the Binay's have attracted supporters to the vigil at the city hall grounds with film showings on giant screens and free Zumba lessons. Media have also been given free food.
Balloon salesman Errol Bonba waited outside Mayor Binay's office door on Friday, waiting for the chance to give him a statement of support from the city's disabled persons group.
"I hope this stand-off won't delay the delivery of my dentures. It will give me confidence when dealing with my clients," the wheelchair-bound 52-year-old told AFP, flashing a toothless smile.
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