By Jerrylyn Barcelo
09/14/2010 [ tribune.net.ph ]
Vice President Jejomar Binay ordered yesterday the blacklisting of property developer Globe Asiatique from transacting with the state agency Home Development Mutual Fund (Pag-Ibig Fund) as a result of the questionable P7.1 billion loans that the privat firm acquired from Pag-Ibig.
Binay, who is also Housing and Urban Development Coordinating Council (HUDCC) and Pag-Ibig chairman, has ordered a thorough investigation into the loans Globe Asiatique had acquired.
Binay said he had ordered the blacklisting of Globe Asiatique, the company that racked up notices of buyback totaling P1.1 billion for its Xevera housing loans.
The fund was alarmed at the discovery of spurious transactions by the developer’s Xevera housing projects in Pampanga involving fake borrowers. These findings were discovered through Pag-Ibig’s own validation and internal control mechanisms.
The fund immediately implemented protective measures, including suspension of Globe Asiatique’s access to the HDMF housing program express lane facility.
The fund also issued notices of buyback for accounts with confirmed breach of warranties. Also, Pag-Ibig terminated Globe Asiatique’s Collection Servicing Agreements given the latter’s failure to remit payments to the fund. A full audit of all Xevera accounts was also ordered.
Emma Linda Faria, officer in charge of the Pag-Ibig Fund, also ordered the speeding up the conduct of a thorough investigation into the matter to determine the administrative, civil and criminal liabilities, as may be appropriate, of concerned parties.
Faria also assured accredited developers and borrowers that the fund will continue to take out qualified housing loan applications.
“The fund’s housing program has not just made us the biggest provider of housing loans; it showed that we are one of the more stable and viable government institutions in the country today. Our institutional strength and our financial stability have enabled us to not just continuously honor our obligations to our members, but also allow the fund to meet its mandates,” she said.
Meanwhile, 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. Their funds are intact, and will remain under their names and will be lent or, at maturity, released only to them for their benefit, Faria said.
“Pag-Ibig is still on track in meeting its income/dividend targets for the year 2010,” she said, adding that the Fund will continuously review existing Pag-Ibig guidelines and policies “to further strengthen internal audit processes and enhance risk management measures.“
“While this amount is by no means small, this represents only half of one percent of the total assets of the Fund and is fully collateralized. 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.
“We are ready to file the appropriate charges to protect the fund. I have also directed the Pag-Ibig management to take the necessary steps to prevent a repeat of the Xevera case and to assure the members that their savings are being managed professionally,” he said.
Faria explained that as a condition for accreditation, developers guarantee against ineligible or fraudulent borrowers, non-completion of projects, and fraudulent transactions. They also issue guarantees on loans against default within a period of two years. Developers also commit to buy back faulty accounts.
A breach of any of these guarantees is ground for blacklisting developers, aside from failing to remit collections under a Collection Service Agreement.
“In the case of Globe Asiatique, we have initiated the blacklist proceedings based on the results of our investigation,” she said.
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