Did housing execs get condo units from Globe Asiatique?

Press Release
September 11, 2010

QUEZON CITY  –  Did former housing officials, including then members of the board of trustees of the Pag-IBIG Fund, receive condominium units from Globe Asiatique Realty Holdings Corp., the developer linked to what appears to be the syndicated diversion of the proceeds of fraudulent home loans granted to "ghost" borrowers?

Cavite Rep. Elpidio Barzaga Jr. raised this question Friday, as he pushed for a full-dress congressional inquiry into the Pag-IBIG loans obtained by non-existent borrowers to acquire property at Globe Asiatique's Xevera projects in Mabalacat and Bacolor, both in Pampanga.

Barzaga said his office had received information that a number of former housing executives allegedly got residential units from Globe Asiatique, particularly at the firm's 30-level GA Twin Towers along EDSA in Mandaluyong City.

"This has to be verified right away by congressional investigators and the new Pag-IBIG management," Barzaga said.

"If the allegation 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," he said.

"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 said he had nothing personal against the owner of Globe Asiatique or the former housing officials. He stressed the need for Congress to protect Pag-IBIG funds, which he said represent 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.

According to Barzaga, 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 pointed out.

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?"