Lawmaker seeks probe into illegal use of Pag-IBIG Fund

A House leader on Tuesday sought an inquiry into the alleged illegal use of Pag-IBIG funds for bogus home loans and questionable housing development projects. The Pag-IBIG fund, also known as the Home Mutual Development Fund, is a government housing program. Republic Act 9679, or the Home Mutual Development Fund Law of 2009 (also known as the Pag-IBIG Law of 2009), made membership into the Pag-IBIG fund mandatory for all employees of companies that are members of the Social Security System (SSS) or the Government Service Insurance System (GSIS). Majority Leader Neptali Gonzales II on Thursday, through House Resolution 316, wanted the House committee on good government to investigate the alleged malpractices or corrupt acts of certain Pag-IBIG fund officials. These are the officials who have allegedly allowed the funds to be used for bogus housing loans and fraudulent housing schemes and projects. He cited newspaper reports that in Pampanga alone, hundreds of loan accounts involving hundreds of millions of pesos were found to be spurious and fictitious. The listed borrowers did not even know that they have applied for and have been granted Pag-IBIG housing loans. He said at least P6.6 billion in housing loan proceeds were allegedly taken out by Globe Asiatique Realty Holdings Corporation for buyers of its units in housing projects in Pampanga. The fund was allegedly taken out even though the housing units to be financed were not yet completed, or were below standard, unoccupied, or closed. Hundreds of the said buyers were reportedly fake Pag-IBIG members or ineligible for Pag-IBIG membership. Hundreds of other people were reportedly used to obtain spurious loan accounts. Pag-IBIG internal audit report showed that many loan documentations were incomplete and deficient, lacking even the membership status verification slip that determines borrower’s eligibility for a housing loan. The loan processing was also irresponsibly fast tracked or facilitated, the audit report showed. Gonzales said the processors turned a blind eye to loan documentation deficiencies to approve loans in one to three days only, “a suspicious indication of an unholy cooperation with the concerned developer that made possible the dissipation of Pag-IBIG funds to the detriment of the interest of Pag-IBIG members." He added there were reports that loan rules and regulations were suspiciously relaxed to favor certain developers. “The irresponsible large scale use of Pagibig funds for unlawful housing activities may lead to a financial crisis affecting the overall state of the national economy," the Mandaluyong lawmaker warned. –VVP, GMANews.TV