Ang HGC Public information Office, naman

OFFICE of the PRESIDENT, ang address ng email na ipinadala sa Chief Kuwago kaya agad naman natin binasa ito dahil baka importante ang laman. Hehehe!

Sa email, ang HGC Public Information Office pala ang nagpadala.

Ilalabas natin nang buung-buo ang email ng HGC PIO last Friday para wala silang masabi at maging patas para na rin mabasa ng madlang people ang kanilang isinulat at sila na rin ang humugas este mali  humusga pala dito.

Sabi nga, just read it!  

Dear Mr. Butch Quejada,

We’ve read with great interest your column, “Ora Mismo,” (Pilipino Star Ngayon, Oct. 28, 2010), specifically the matter relating to Bagong Henerasyon Party-List Representative Bernadette Herrera-Dy’s move to investigate Home Guaranty Corporation (HGC).

At the outset, we would like to inform you that we welcome such investigation on the alleged anomalous transactions entered into by HGC. Like her, we feel that the House inquiry would bring out the true facts of the case faster, and that when the final verdict comes, we are confident that HGC will be vindicated and cleared of all charges and imputations of incompetence, mismanagement, and fraud.

Therefore, in the interest of objectivity, we would like to raise the following points regarding the issues that have been raised in previous newspaper articles including yours:

1. “…anomalous transactions entered into by the (HGC) that have put the national government in a highly disadvantageous position.” We would like to point out that we are a government-owned and -controlled corporation and that all transactions of the corporation passes through our Board of Directors composed of the Housing and Urban Development Coordinating Council (HUDCC) Chairman, Secretary of the Department of Finance (DoF), National Economic and Development Authority Director General, the HGC President, and three private sector representatives. We assure you therefore that whatever transactions are entered into by HGC meets and satisfies all governmental procedural requirements, as well as the minimum legal requirements in all corporate transactions, and that they are above-board and are consistent with sound business practices.

2. “dubious deal involving the zero coupon bonds…”The mounting guaranty claims against the Corporation in 2001 as a result of the imposition to guaranty urban renewal projects has left it with no choice but to tap the capital market with a number of housing bond floatation just to honor its obligations and preserve its credibility from further deterioration. As responsible stewards of public funds and assets, we had to explore alternative ways to raise capital at a time when the National Government was in deficit.

3. “HGC’s growing losses and deficits had continuously impaired the Corporation’s financial capability to carry out its mandate…” Operationally, HGC is a viable Corporation. To illustrate, HGC’s gross revenues grew 25% to PhP680.30Mn while operating expenses grew 17% to PhP264.67Mn, resulting in an operating income of PhP415.63Mn in 2009. Adding other income net of other expenses of PhP218.02Mn, the income before financial charges was PhP604.95Mn. But subtracting PhP1.18Bn in financial charges leads to a loss of PhP573.62Mn.

4. “Despite posting yearly losses for the past several years, HGC still gave employees early retirement packages amounting to more than PhP224 million.” Due to HGC’s undercapitalization and growing guaranty obligations, the Corporation had to streamline its operations and focus on its core business functions. HGC’s Early Separation Incentive Program (ESIP) dramatically reduced the Corporation’s monthly payroll from PhP14.50Mn to PhP7.20Mn beginning in 2004. This offered another source of savings for the Corporation.

From the above discussions, it is easily discernable that the HGC is in fact capable of sustaining its operations contrary to the unfair accusations of mismanagement. Despite being under-capitalized, the Corporation was able to generate revenues, part of which was even used for debt servicing.

Nonetheless, HGC welcomes House Resolution No. 549 sponsored by Congresswoman Bernadette Herrera-Dy as it will set the stage for it to finally defend itself from the unwarranted accusations hurled against it. The public deserves to know the truth and we are prepared to answer any inquiries, be it in a judicial or in a legislative forum. Incompetence is too harsh a word to be taken lightly by the men and women behind a Corporation that strives to fulfill its mandate to the Filipino people despite the odds.

We are hoping that the information provided here have provided you with a different perspective on the matter. We would appreciate it if you will use the same in presenting an objective discussion of the issue in the future.

Thank you.

HGC Public Information Group

‘Bakit hindi naglagay ng pangalan ang HGC para naman malaman ng madlang people kung sinong Pontio Pilato ang sumalat sa mga Kuwago ng ORA MISMO’ sabi ng kuwagong nagtatago.

“Sa topic nila sa itaas mas maganda siguro kung  hintayin na lamang nila ang gagawin pagbusisi ni Rep. Herrera-Dy sa mga susunod na araw kasi nga pag-uusapan ito sa Kongreso.

Sabi nga, Truth Shall Prevail!

Abangan.