Globe Asiatique suit vs Pag-Ibig Fund junked

By: Jerome Aning - 11 years ago

Vice President Jejomar Binay. INQUIRER FILE PHOTO

MANILA, Philippines—The Court of Appeals has dismissed the complaint of Globe Asiatique Realty Holdings against the Home Development Mutual (Pag-Ibig) Fund, Vice President Jejomar C. Binay said Friday.

The Vice President, who is Pag-Ibig chairman, said the appellate court reversed and set aside the decision of Judge Eugene Paras of the Makati City Regional Trial Court Branch 58 in an amended decision promulgated Nov. 21.

Paras had originally nullified the cancelation by Pag-Ibig of the continuing Funding Commitment Agreements (FCAs) and Collection Servicing Agreement (CSA) it entered into with Globe Asiatique, saying Pag-Ibig breached its agreements with Globe Asiatique when it refused to accept replacement buyers.

Paras’ original decision also said Pag-Ibig and its board of trustees were guilty of breach of the provisions of the memorandum of agreement and the FCAs.

The agency, acting on the orders of the Vice President, had canceled the FCAs and CSA after it uncovered ghost buyers and other irregularities in Globe Asiatique projects.

In dismissing the complaint, the Court of Appeals pointed out that Pag-Ibig Chief Executive Officer Darlene Marie Berberabe and the individual members of the board of directors were not even named as party defendants to the case.

“Thus, it can be said that jurisdiction over the petitioner (Berberabe), as member of the board of trustees, was not properly obtained by the trial court,” the appeals tribunal ruled.

Binay said he was hopeful the court’s decision would also lead to the dismissal of the case against the Pag-Ibig board of trustees.

“We are confident that the dismissal of the case against Attorney Berberabe will pave the way for the dismissal of the complaint against all the members of the board of trustees of Pag-Ibig,” Binay said.

According to the Court of Appeals, the rest of the members of the Pag-Ibig board may benefit from the dismissal of the complaint against Berberabe, saying, “After all, petitioner Berberabe and the board of trustees, which she is a member of, are similarly situated.”

Binay, who chairs the Pag-Ibig board, had ordered the filing of syndicated estafa charges against Globe Asiatique owner Delfin Lee and several others after investigation showed Lee had used fake documents and ghost borrowers to secure almost P6.65 billion in loans from Pag-Ibig. Ghost borrowers supposedly bought homes in Globe Asiatique’s Xevera housing project in Mabalacat City, Pampanga.

In his counterpetition, Lee accused Pag-Ibig of reneging on its contractual obligations as a result of the alleged loan irregularities.