Former, current HGC heads face plunder, graft raps

MANILA, Philippines - Both the current and former presidents of Home Guaranty Corp. (HGC) are facing plunder and graft charges for alleged mismanagement of the agency’s finances resulting in P1.899-billion losses from 2009 to 2011.

Lawyer Alan Paguia, a former counsel of Manila Mayor Joseph Estrada, charged yesterday Manuel Sanchez and Gonzalo Benjamin Bongolan before the Office of the Ombudsman based on separate Commission on Audit (COA) reports detailing various irregularities in the HGC.

Sanchez and Bongolan are accused of causing huge financial losses in the HGC and giving concerned party-beneficiaries unwarranted benefits, advantage or preference through manifest partiality and evident bad faith.

HGC is a government-owned and controlled corporation tasked to operate a credit guaranty program in support of government’s effort to promote home ownership.

President Aquino named Sanchez to the HGC on Sept. 17, 2010 to replace Bongolan, now vice president of Philippine Commercial Capital Inc. (PCCI).

In a statement, Paguia said he was compelled to file the case because he was worried that the abuses at the HGC may end up forgotten and neglected.

“Everyone seemed focused on the abuses of the pork barrel fund to the neglect of other public officials also being found by the COA to have committed grave abuse of discretion and authority for their personal gain,” read the statement.

“As an advocate of the rule of law, it is my moral duty to take to task government officials for their abuse of the public trust and confidence inherent in their positions.

“The HGC grossly diverted from its mandated tasks and as COA auditors found, possibly to their great horror and distress, billions of money were squandered on deals and expenses that solely benefited its top officials.”  

Based on the COA reports, Paguia listed 13 specific acts of alleged abuse of power and authority that Sanchez had committed in his capacity as HGC president beginning in 2010, and 10 specific violations of the law that Bongolan had committed when he headed the HGC in 2009.

COA auditors said Bongolan increased HGC’s investments in private shares of stocks and bonds from P3 million to P734 million, contrary to Republic Act 8763 and the 2009 General Appropriations Act.

He allegedly used a portion of the interest income from the investments to reward himself and other HGC officials some P9.349 million in “Monetary Incentive Award,” and authorized the use of P22.287 million for a motor vehicle purchase plan for its top officials.

Paguia said the COA reports also questioned and disallowed more than P415 million disbursed for the HGC retirement plan for being contrary to Republic Act 4968, the Teves Retirement Law.

The HGC also allegedly lost some P247 million over the sale of three so-called APEC villas and 52 quadruplex units when these were sold for a measly P41.5 million and P48 million.