Press Release
December 13, 2010


Sen. Serge Osmeña III emphasized today that no parties have been cleared by the Senate Committee on Banks, Financial Institutions and Currencies in connection with the scandalous multi-billion housing transactions between the Home Mutual Development Fund (Pag-IBIG) and private developer Globe Asiatique.

Osmeña made the statement as he debunked news reports that the Committee had cleared businessman Delfin Lee's Globe Asiatique in relation to it's liability in the housing irregularity.

"We never cleared Globe Asiatique or any of its officers. They are being charged with syndicated estafa by the Pag-IBIG. The evidence of fraud is overwhelming," he stressed, citing Pag-IBIG records that fictitious borrowers were submitted by Globe Asiatique to avail of millions of pesos of Fund loans. A Pag-IBIG official indicated that Lee's bad loans had already reached P4 billion.

Also, Osmeña said the Committee has yet to determine what other laws were violated when officials and members of the board of the Pag-IBIG gave Globe Asiatique preferential treatment for its Xevera Pampanga housing project.

He noted the admission of Juanito Eje, vice president of Pag-IBIG's Wholesale Lending Group, during last Thursday's committee hearing that Globe Asiatique enjoyed special treatment - such as a higher funding commitment line of P5 billion, which is ten times higher than normal, and exemptions from requirements under Pag-IBIG Circular 259, all of which were not made available to other housing developers.

Small housing developers who also attended the hearing confirmed they could only avail a maximum of P500 million funding. They were not informed that Pag-IBIG had made available to Globe Asiatique a funding that was ten times bigger than the funding commitment line for housing.

"This is a breach of good management practice. The committee will check into collusion with and bribery of certain Pag-IBIG officials in defrauding the Fund," the senator said.

Osmeña reiterated that the purpose of the Senate committee hearing is to improve the process and plug the loopholes in the loan activities of Pag-IBIG by amending its charter.

However, he said: "If the Committee finds any violation of criminal laws, it would not hesitate to recommend to the proper bodies the prosecution of those criminally liable."

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