House probe on HGC

I am writing in reaction to a news article written by Jess Diaz which appeared in your paper dated October 19, 2010 (page 4 of the News Section with the heading “House to probe HGC losses”). In the said article, Mr. Diaz reported that Party List Representative Bernadette Herrera-Dy of the Bagong Henerasyon Party-List filed Resolution 549 which seeks to investigate the alleged billions of financial losses incurred by Home Guaranty Corporation (HGC) as a result of anomalous transactions entered into by HGC officials starting in 2002 which, in the words of the distinguished Congresswoman, “have put the national government in a highly disadvantageous position.”

While I applaud the apparent vigilance of the said Congresswoman, I find her crusade against HGC to be ironic.

Rep. Bernadette Herrera-Dy is the daughter of Mr. Alejandro G. Cruz-Herrera, the president and general manager of Lexber, Inc. Lexber, Inc. is the marketing agent of Home Guaranty Corporation for several parcels of property in the Eagle Crest Villa Subdivision in Baguio City under a marketing agreement with the HGC.

I know this for a fact because my relative bought a lot in the Eagle Crest Village Subdivision from Lexber Inc. My relative finished paying for the lot but HGC failed to release the title because, according to HGC, Lexber did not remit my relative’s payment to them.

We are now informed that HGC filed an estafa case in Quezon City courts against Lexber Inc. for the recovery of the lot installment payments that Lexber failed to remit to HGC.

With this in mind we suspect her motives in calling for a congressional hearing: is it to use the said hearing to retaliate against HGC? In fact, is there not a clear conflict of interest in this case? Her objective may not be as noble as she would have everyone to believe and that her moral authority to spearhead the said investigation may not be as pristine as she would care to reveal.

But we welcome the said congressional hearings to look deeper into the business relationship between HGC and Lexber so that the interests of the other buyers are amply protected.