Pag-IBIG moves to blacklist real estate firm

MANILA, Philippines—The Home Development Mutual Fund
(Pag-IBIG Fund) is set to blacklist real estate developer Globe Asiatique Realty Holdings Corp., whose Xevera housing projects in Pampanga have received billions from the agency, partly by using fake borrowers.

In a statement released by the Office of Vice President Jejomar Binay, who is also the housing czar, Pag-IBIG officer in charge Emma Linda Faria yesterday said the agency had started blacklisting proceedings against Globe Asiatique.

The proceedings are “based on the results of our investigation,” Faria said.

She said that as a condition for accreditation, developers guaranteed against ineligible or fraudulent borrowers, noncompletion of projects and fraudulent transactions
.

“They also issue guarantees on loans against default within a period of two years. Developers also commit to buyback faulty accounts,” Faria said.

Ground for blacklisting

She said a “breach of any of these guarantees is ground for blacklisting developers, aside from failing to remit collections (under their collection service agreement with the Fund).”

Faria said that as of Aug. 31, Globe Asiatique had racked up notices of buyback totaling P1.1 billion for loans of the Xevera housing projects.

“While this amount is by no means small, this represents only half of one percent of the total assets of Pag-IBIG Fund and is fully collateralized,” she said.

“This will not affect the agency’s financial stability and capability in providing the necessary services to them,” Faria stressed.

Investigations

Binay has ordered a “thorough probe” of the alleged housing loan irregularities involving Globe Asiatique, including the use of “ghost borrowers.”

“We are ready to file the appropriate administrative, civil and criminal charges to protect the Fund,” he said.

The Office of the Ombudsman, Senate and House of Representatives said they would also investigate the irregularities surrounding Pag-IBIG loans for the Xevera housing projects in Mabalacat and Bacolor, Pampanga.

Globe Asiatique president Delfin Lee has repeatedly denied the allegations against his firm.

Spurious transactions

Earlier this year, Pag-IBIG was “alarmed with its discovery of spurious transactions in Globe Asiatique’s Xevera housing projects in Pampanga, which involved fake borrowers,” Faria said.

Pag-IBIG “immediately implemented protective measures, including the suspension of Globe Asiatique’s access to the agency’s housing program express lane facility,” as well as a “full audit of all Xevera accounts,” she said.

“The Fund also issued notices of buyback for accounts with confirmed breach of warranties. Likewise, Pag-IBIG terminated Globe Asiatique’s collection servicing agreements given the latter’s failure to remit payments to the Fund,” she added.

Sen. Serge Osmeña III said proponents of the housing projects of Globe Asiatique and Pag-IBIG should be “jailed for life.”

Osmeña, chair of the Senate committee on banks, financial institutions and currencies, said that all top officials who had connived in allowing “ghost borrowers” to get access to state funds would be invited to the Senate probe.

Miro Quimbo

He said this would include then Pag-IBIG president and CEO and now Marikina Rep. Miro Quimbo. “I don’t care if you’re a congressman, president or vice president. He has to answer to the Filipino people, they only represent the Filipino people,” Osmeña said.

Sen. Jinggoy Estrada said that former Vice President Noli de Castro, who was the housing czar in the Arroyo administration, should also appear before the Senate investigation.

“I believe that anybody who has something to do with this project should appear before the Senate no matter his status,” Estrada said.

Osmeña said the government would have a difficult time getting back its money.

“Who authorized Globe Asiatique to be the ones to qualify the borrowers and to release the money to the borrowers? Isn’t that self-interest? He (Lee) does not care whether the buyer is qualified or not as long as he gets the cash or profit. That’s why you have safeguards because the moment you gave the money out, you can’t get it back,” Osmeña told reporters.

Added safeguards

Like Binay, Faria assured Pag-IBIG Fund members that “their savings are safe” and “added safeguards to protect the integrity of the Fund are being put in place.”

“The Pag-IBIG Fund remains firm in its commitment to protect its members’ hard-earned savings. Our members need not worry about the safety of their savings,” Faria said.

She said “funds are intact and will remain under their names and will be lent or released only to them for their benefit.”

“We would like to assure our members that this will not affect the agency’s financial stability and capability in providing the necessary services to them,” she said.

Faria assured accredited land developers and borrowers that Pag-IBIG would continue processing qualified housing loan applications.

Jerry Esplanada & Gil Cabacungan, Phil. Daily Inquirer