Housing executives got condo units from developer, says lawmaker

MANILA, Philippines – Former housing officials, including some members of the board of trustees of the Pag-ibig Fund, received condominium units from troubled real estate developer Globe Asiatique, Cavite Rep. Elpidio Barzaga Jr. said yesterday.

He said he received information that “a number of former housing executives” were given units at the 30-storey GA Twin Towers along Edsa in Mandaluyong City.

“This has to be verified right away by congressional investigators and the new Pag-ibig management,” he said.

He said if his information is true, “then we have to find out how they (former housing officials) acquired the properties. Whether they got the assets for free, or at a discount. Or if they bought the units using their own money.”

“If they purchased the units, then they should have the documents to prove not only that they actually paid for the properties, but also that they had the lawful income to support the payments. Of course they should have also declared these assets in their annual filings,” he added.

The GA Twin Towers was one of Globe Asiatique’s early joint housing development projects with Pag-IBIG.

Barzaga authored one of three resolutions asking the concerned House committees to inquire into what they described as the “fraudulent” use of housing loans by Globe Asiatique.

Representatives Neptali Gonzales ll of Mandaluyong City, who is House majority leader, and Aurelio Gonzales Jr. of Pampanga authored the two other resolutions.

Pag-IBIG is the housing fund of private sector and government workers. It has billions in workers’ contributions.

Globe Asiatique has projects in Pampanga, Cavite and Metro Manila, and is owned by Delfin Lee.

Barzaga said he has nothing personal against the owner of Globe Asiatique or the former housing officials. He said members of Congress have the duty to protect Pag-IBIG funds, which “are the hard-earned contributions of public and private sector workers.”

“This is all part of our mandate. We just want to get to the bottom of the syndicated fraudulent housing loans, plus Globe Asiatique’s P1-billion worth of unpaid obligations to Pag-IBIG,” he said.

He pointed out that the unchecked grant of fraudulent loans was a key factor that caused the recent home mortgage debt crisis and the eventual collapse of America’s housing market, that in turn set off a global financial meltdown.

“But in America, they at least actually had real persons who borrowed the money to buy the homes, either to occupy or for investment purposes. There was fraud only in paperwork compliance, since it turned out that many loans were granted even to persons who did not have enough income,” he said.

He added, “With respect to the Pag-IBIG loans in question, they had borrowers that did not exist at all. So where did the all loan disbursements go?”

Barzaga expressed alarm over the breakdown of internal controls at Pag-IBIG.

“Either the checks (against potential fraud) failed, or there was connivance by Pag-IBIG insiders,” he said. –Jess Diaz (The Philippine Star)