Globe Asiatique sues Pag-ibig Fund for not releasing buyers' loans

MANILA, Philippines - Globe Asiatique, developer of the controversial Xevera housing projects at Bacolor and Mabalacat in Pampanga, has filed a damage suit against the Pag-ibig Fund for not releasing loans for which its buyers had applied.

In a 29-page complaint for “specific performance and damages” filed through Lawyer Rony Garay, Globe Asiatique Realty Holdings Corp. president Delfin Lee asked the Makati regional trial court (RTC) to compel Pag-ibig Fund to release its pending loan take-outs and the amount due Globe Asiatique.

Among the respondents named in the complaint include the Home Development Mutual Fund (HDMF) or Pag-ibig Fund, its board of trustees and Emma Linda Faria, Pag-ibig’s officer-in-charge.

He is also asking the Makati court to order the executives of Pag-ibig to pay Globe Asiatique P1 million for attorney’s fees, P500,000 for litigation expenses and exemplary damages of P500,000.

“Globe Asiatique did not defraud Pag-ibig Fund of a single centavo through alleged bogus loan borrowers. The company is the one which stands to lose money, and not Pag-ibig, as it is the company which guaranteed every loan take-out in its housing projects,” Lee said.

Lee also denied that Globe Asiatique has been involved in fraudulent use of housing loans from Pag-ibig.

“The company followed the guidelines set forth by the housing agency in the processing of loans applied for by Pag-ibig members. The company did not approve housing loans but only facilitated the processing of these applications,” he said.

Lee said some housing loans really turn out to be questionable or problematic, which is part of the risk that developers have to face and is normal in the industry.

“There was no deliberate effort on the part of the company to come up with ghost Pag-ibig borrowers to defraud the housing agency. It was still Pag-ibig which finally scrutinized and approved these loan applications. The company did not receive special treatment from Pag-ibig. The express lane, where loans are granted within seven days, is not a special privilege and was also given to 166 other developers,” Lee said.

Lee said the Globe Asiatique’s Xevera housing projects in Bacolor and Mabalacat, Pampanga are not “ghost projects.”

“There are 3,000 families already living in Xevera. The seats of government of Bacolor and Mabalacat are located even within the housing projects, which have existing free schools for residents, a church, wet and dry market, a commercial area and an eco and theme park,” he said.

Lee said in the middle of 2008, Globe Asiatique, with the approval of Pag-ibig Fund, constructed Xevera to cater to wage earners.