Makati, Metro Manila, Philippines (AHN) – The Philippine Home Development Mutual Fund announced Tuesday the blacklisting of real estate developer Globe Asiatique Realty Holdings Corporation. HDMF Officer-in-Charge Emma Linda Faria said the ban resulted from allegations by the agency that Globe’s Xevera housing projects in Pampanga got billions of pesos of housing loan from the agency by partly using fake borrowers.
As of the end of August, Globe, which gained fame for building the house of a reality television show and giving away homes as prizes for top winners of the program aired over ABS-CBN, had total notices of buybacks from HDMF of $148.4 million (6.6 billion pesos). The units for these loans were not yet finished or were substandard, unoccupied or closed, according to Faria.
Aside from problems with the units, some of Globe’s buyers were not real HDMF members, not eligible for membership or used fake loan accounts, the agency contends.
Upon discovery of the anomalies, HDMF suspended Globe’s access to the agency’s housing program express lane facility and ended the company’s collection servicing agreements. Philippine Vice President Jejomar Binay, who also heads HDMF, ordered the filing of administrative, civil and criminal cases against the officers of Globe.
Faria, however, assured HDMF members that the agency’s exposure to Globe is only a fraction of the housing agency’s total assets. The fraud allegations will not affect HDMF’s financial standing and capability to provide housing loans. Membership in HDMF is compulsory for all public and private employees in the Philippines.
The loans extended by HDMF have been instrumental in easing the housing backlog throughout the Philippines over the past three decades.
Globe has not yet issued a statement in response to the HDMF allegations.
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