Money-losing HGC awards executives with new cars

THE management of state-run Home Guaranty Corp. have rewarded themselves with P22.2 million to acquire executive cars and another P9.349 million in “incentive awards” in 2009 despite the government corporation racking up P9.98 billion in losses, Bagong Henerasyon Rep. Bernadette Herrera-Dy said Tuesday.

The party-list representative made the revelation in an attempt to force a House investigation and stop the company from floating another P5.5 billion in bonds.

Herrera-Dy said the company’s executives availed themselves of a five-year installment plan at zero interest.

“These people rewarded themselves with a P22.2-million car plan in exchange for pushing the company to near bankruptcy,” she said.

“I deplore their insensitivity.”

Herrera-Dy said the company’s officials also authorized the disbursement of P3 million to cover the insurance premiums of its directors and officers, a payment that the Commission on Audit had found “without legal basis.” –Manila Standard Today