CITY OF SAN FERNANDO, Philippines?The Home Development Mutual Fund (Pag-Ibig Fund) had canceled its collection servicing agreement (CSA) with Globe Asiatique Realty Holdings Corp. for the latter?s Xevera housing projects in Pampanga two weeks before an Inquirer special report disclosed possible irregularities in the projects.

Delfin Lee, president of Globe Asiatique, confirmed the cancellation of the agreement on Aug. 16.

?The cancellation was all for the better because then we won?t have headaches collecting (amortization),? Lee told the Inquirer in a text message.

Pag-Ibig Fund officials in Pampanga and Makati City have yet to issue an official statement on why the CSA was scrapped. Personnel in the Pag-Ibig Pampanga branch had advised housing loan borrowers to pay directly to its Maimpis office in the City of San Fernando.

Two Inquirer sources in the national savings and housing agency said the CSA was cancelled because Globe Asiatique had failed to remit housing loan amortization for three weeks. Its weekly remittance usually amounted to P15 million.

Globe Asiatique had also stopped taking out loan proceeds during those three weeks, the sources said.

Lee yesterday said the Pag-Ibig Fund had not lost money from his firm.

Documents obtained for the Inquirer report showed that Globe Asiatique took out almost P7 billion in housing loans on behalf of nearly 9,000 borrowers in Xevera Bacolor and Xevera Mabalacat in Pampanga from March 2008 to May 2010.

Then Vice President Noli de Castro chaired the board of directors of Pag-Ibig Fund.

Lee said his company ?does not enjoy favoritism from the government, has no ghost housing project, does not owe Pag-Ibig Fund a single centavo, and is the one which stands to lose money and not the government if the allegation that there are phony borrowers is true.?

He denied receiving ?special privileges,? from government, saying his 16-year-old company ?grew by delivering affordable but quality housing projects on time using its own funds.?

In the Xevera projects, Pag-Ibig Fund documents showed that Globe Asiatique paid a number of people and made them sign members? forms and notarized affidavit of income.

It also recruited people ineligible to become Pag-Ibig members and took out the loan proceeds although the units were not completed and had material deficiencies.

Several borrowers could not be found while many units remained unoccupied.

The Pag-Ibig Fund, on the other hand, bent many rules, allowing instant membership that it stopped in July this year, triggering a conflict with Lee.

Lee said in a statement that his company ?does not approve housing loans but only processes applications of those wishing to buy units in their projects for approval with concerned government agencies.?