HGC says it has no hand in Globe Asiatique scam

MANILA, Philippines - Government housing agency Home Guaranty Corp. (HGC) said it had no involvement in the P 6.6-billion housing scam allegedly committed by Globe Asiatique president Delfin Lee.  

HGC records show that it guaranteed 71 housing loans totaling P87 million granted by Allied Bank to buyers of Globe Asiatique housing units in Mandaluyong and Binangonan, Rizal.  These accounts were enrolled for a one-year guaranty coverage in 2006. By November 2007, the guaranty cover for all these accounts ended and they were never renewed.

Following reports of irregularities committed by Globe Asiatique, HGC management implemented a policy of “blacklisting” for guaranty cover for all Globe Asiatique accounts.

The guaranty cover is maintained, however, for 37 socialized housing loans extended by Pag-Ibig to buyers of socialized housing units in Globe Asiatique projects mostly in San Mateo, Rizal.  These accounts were enrolled under the Abot-Kaya Pabahay Fund (AKPF) from Nov 2002 to June 2010, totaling P9.01 million.

HGC administers the Abot Kaya Pabahay Fund (AKPF) that provides guaranty on the socialized housing loans extended by Home Development Mutual Fund (PAG-IBIG), Social Security System (SSS) and Government Service and Insurance System (GSIS). AKPF coverage is mandatory coverage provided by law.

AKPF accounts are enrolled one-time and considered automatically renewed.  With a P400 thousand loan limit, socialized housing loans enrolled against the AKPF are generally for families in the lowest income group.

The state-owned Home Guaranty Corp. is mandated to mobilize private funds for public housing through a system of guarantees and fiscal incentives. Since the enactment of its new charter in 2000, HGC guaranteed P308.66 billion worth of housing loans making possible the purchase/construction of 603,696 housing units. Under the present administration, HGC guaranteed P77.44 billion of private investments in public housing translating to 51,114 housing units.