But former VP denies special treatment for real estate developer

MANILA - Former Vice President Noli de Castro won't call it "special treatment" but a "special program" to describe the arrangement between Pag-IBIG Fund and Globe Asiatique Realty Holdings Corp. that granted the real estate developer a P5 billion credit commitment line for "township" projects in Pampanga.
As chairman of the Housing and Urban Development Coordinating Council (HUDCC) during the previous administration, de Castro also served as chair of the PAG-IBIG Fund.
“Ayaw ko pong tawaging special treatment but this is a special program. And it is under the regular program,” de Castro told the Senate committee on urban planning, housing, and resettlement that reopened an investigation on the housing mess.
De Castro is an anchor of ABS-CBN News' flagship program "TV Patrol."
Senators questioned a July 2009 memorandum of agreement signed by then Pag-IBIG CEO Jaime Fabiaña and Globe Asiatique Realty Holdings Corporation's president Delfin Lee.
It granted Globe Asiatique a P5 billion funding commitment line over a period of three years as compared to a maximum of P500 million being granted to other developers.
“The only difference, ang pagkakaiba lamang po ay 5 billion pesos ang involved na pera. Pero ipautang ho na initial line na 500 million pesos at pag naubos mo ang 500 million pesos, kinakailangan ang performing accounts ratio mo ay 95 percent. So dapat ang 95% na yun ay pinangangalagaan po ng PAG-IBIG, nasisigurado nila na ang 95% ay talagang totoo bago ka pauntangin ulit ng PAG-IBIG,” said De.
“So wala hong special dito, walang special treatment, only special program dahil ang project po ay township. May simbahan, may munisipyo, may high school, may palengke, may plaza. So ito ho ang pangarap naming development ng mga developers sapagkat naniniwala po kami, ‘yung epekto ng malaking na project na ganito lalong lalo na sa mga manggagawa so ito po ay binigyan namin ng conditions and warranties.”
One condition set was a 5-year buyback guarantee, which meant that the developer commits to buy back the accounts of member-borrowers who defaulted on their loan.
It appeared that Globe Asiatique was the only developer given this privilege since other developers are only given 2 years.
This prompted Senator Koko Pimentel to note Globe Asiatique’s “asymmetric” relationship with Pag-IBIG.
“Ilan itong ganito? How many developers do you have this…. asymmetric relationship kasi ibig sabihin noon iba ang relationship ninyo sa kanila? Ilan ang developers na ganito?” Pimentel asked current Pag-IBIG President and CEO Darlene Berberabe.
“Iisa lamang po, kay Globe Asiatique lamang po,” Berberabe said, confirming the "special" nature of the "arrangement" given to Globe Asiatique.
“Bakit special, paano naiiba ‘yung 2009 na arrangement with the Globe Asiatique? ‘Yun pong ibang Window 1 [developers], mayroon silang buy-back period na two years. Sa Globe Asiaqtiue under the MOA, naging 5 years,” Berberabe said.
“‘Yung Window 1 po, ‘yung other developers under the Window 1, ‘yung membership verification na ginagawa ng Pag-IBIG Fund, is before take-out, sa other working group po under the Globe Asiatique agreement, it’s also post. Ibig sabihin sige, mamaya pagkatapos ko na ulit iche-check kung member ba namin, ‘yung capacity to pay ay okay. Pati po ang ITR and then income affidavit ay post din.”
Berberabe told the committee that the arrangements spelled out under MOA is specific only to Globe Asiatique.
“’Yun pong specific na MOA na ito, ito po kasin kasama sa complaint, sa Globe Asiatique, may specific arrangement po at bukod tangi lang po na Globe Asiatique lang ang may ganoon,” she said.
“’Yun pong memorandum of agreement na mayroong funding commitment line na P5 billion. So parang ginagarantiya ng PAG-IBIG na open ang linya up to P5 billion. ‘Yung iba po kasi may limit na P500 million. So dito po ang features po ng arrangement with Globe Asiatique na espesyal sa kanila, ginawa pong regular program na ang beneficiary ay other working groups. Dati po kasi, ang mga formally employed, nasa formal sector po ‘yung borrowers ng Pag-IBIG fund.”
Berberabe was referring to Pag-IBIG members who are not formally employed, a group categorized under the label “other working group.”
“First time po siya na inapprove ng board na mayroon tayong housing projects that will cater to the other working group, ibig sabihin members from the transport sector, ‘yung mga self employed, may mga sari-sari store, ‘yung mga hindi po makakapagbigay ng employer’s certificate.”
DUE DILIGENCE
Committee chair Sen. JV Ejercito pointed out that Delfin Lee admitted during a Senate inquiry during the last Congress that it was Globe Asiatique that paid the advance for their buyers in order to keep a high performing accounts ratio.
Ejericto asked de Castro if Pag-IBIG conducted a background check or exercised due diligence before providing Globe Asiatique with funds.
De Castro said the agency exercised due diligence.
“May ginawa ba ang ahensya, ang Pag-IBIG noong mga panahon na ‘yun ng background check sa Globe Asiatique, sa mga binubuo nito bago pumasok sa malaklaking transaction na umabot ng ilang bilyon? Nagkaroon ba ng kumabaga due diligence bago sila pinahiram?” Ejercito asked.
“Opo, nagsagawa po ng due diligence at ‘yan lagi ho ang ginagawa ng management ng Pag-IBIG. Bago sila humarap sa board sapagkat marami hong tanong syempre ang board. Normally ang mga members ng board makukulit ho yan. So kung wala kag due diligence, mapapahiya ka sa members ng oard. So ako ay naniniwala na every time humaharap angmanagement sa board ng Pag-IBIG, may due diligence sila sa kanilang gustong mangyari at yun naman hong information na nakukuha namin sa kanila, ang sagot nila sa members of the board, yan ang pinagbabatayan namin kung ia-approve o hindi ang isang program.”
CRY FOR JUSTICE
Meantime, complaints continue to cry for justice, like 44-year-old Evelyn Niebres who bought a property from GA’s Xevera project in Mabalacat, only to find out that the title was named to another person.
Niebres told the committee that she paid for the property in cash. She earns a living by selling barbeque and halo-halo.
Mary Ann Nocum, 32, said she spent her earnings from abroad to buy a GA unit and planned to surprise her family. She said she ended up being surprised when she found out that she should not immediately have the unit’s title.
Josephine Cedo and Juliet Paguibulan said they were offered P1,500 by GA personnel and were asked to sign loan application forms for Pag-IBIG but said they never intended to buy a house.
GA’s legal counsel Willie Rivera denied the accusation.
“Hindi po totoo yun because the higher management would never do that kasi ginawa mo na lahat ng 9,000 or 8,000 house and lot at may mga titulo na yan. Would you do that? Are you going to risk your project? No,” Rivera told reporters.
He said title of properties would be given to buyers once loans are fully paid.
'THERE WAS SPECIAL TREATMENT'