MANILA, Philippines - The head of the Home Guaranty Corp. (HGC) faces possible arrest after he was subpoenaed by a special panel of the House of Representatives to attend its next hearing.
Ako Bicol party-list Rep. Rodel Batocabe, chairman of the special Housing sub-committee, issued the subpoena for HGC president Manuel Sanchez to attend the next hearing “or face sanctions allowed by the rules.”
Batocabe said Sanchez would have to explain the “midnight sale” of properties subject to ongoing negotiations apparently to benefit outgoing HGC officials.
He said House rules provide for placing a person under arrest if he or she fails to attend the scheduled hearing.
Also issued subpoenas were members of the HGC bids and awards committee composed of vice chairperson Corazon Corpus, Rafael delos Santos and lawyers Jimmy Sarona and Danilo Javier.
The House panel was tasked to conduct mediation proceedings to settle the long-standing dispute between HGC and property developer RII Builders Inc. over the Smokey Mountain Development and Reclamation Project (SMDRP).
RII Builders had offered to advance P2.8 billion to HGC to finally settle the dispute between it and the agency, which is expected to save the government P500,000 in interest payments daily.
Batocabe and Quezon City Rep. Winston Castelo, vice chairman of the mother House committee on housing and urban development, said there is a need for Sanchez to explain why the HGC decided to put up for sale through bidding the SMRDP lot on an “as is, where is” basis at P1.8 billion when it was still subject of mediation proceedings.