The brouhaha created by reports that a private developer used dummy housing-loan applicants is beginning to escalate and could jettison the Rizal Park hostage-taking fiasco from its high news perch and hog the headlines. This early, conspiracy theorists are positing their own punditry into the housing-loan mess. In fact, the blame-game has begun and there are clear attempts by certain parties to wash their hands of the mess and put the onus of the controversy on somebody else.

This is one issue that needs to be viewed with sobriety, especially in the wake of glaring attempts to make it look like another version of the Legacy scam over which we feasted sometime back. This may not be the case at all, though. It may be good for all of us to avoid being taken for a ride by those fanning the flames of the controversy, temporarily withhold judgment, and look at the facts of the case with objectivity and none of the hysteria that vested interests may want us to succumb to.

Already, some parties are wont to put former Vice President Noli de Castro in a negative light as a result of this controversy. Again, this looks like a case of hysteria-building and of some people wanting to divert attention from their possible contribution to the controversy. What is clear at this point is that de Castro did not run Pag-IBIG on a daily basis. He was the chairman of the agency’s Board of Trustees, whose members included representatives of various sectors that have a stake on this Fund.

To insinuate that de Castro had orchestrated Delfin Lee’s Globe Asiatique’s exceptional access to the Fund is rather far-fetched and definitely looks like somebody else’s smokescreen. Globe Asiatique was about to do an initial public offering (IPO), banking on its solid credentials as a housing and condominium developer until the purported dummy housing- loan story saw print. And then the conspiracy theories took flight. We believe, though, that de Castro should face the investigation reportedly being called by Congress.

With de Castro in the Congress hearings, the public would be able to take a sober look at the reported irregularity and even titillate us about the officials of the Pag-IBIG who could be in on the mess. We can all benefit from de Castro’s appearance in such a probe, since he knows how the agency functions and the roles of the various persons who played key roles in that agency.

We understand that de Castro is being reported as a personal friend of Delfin Lee, a rather far-fetched assumption although we assume that the former Vice President, having headed the housing sector, was, as a matter of course, friendly with all the major characters in the industries affiliated to housing, including Lee. The reports are pushing the envelope so far. We believe de Castro should be queried about this issue but so should other Pag-IBIG officials who have had dealings with Lee and Globe Asiatique and who may have much to tell the Congress committees. What is clear from reports is that Lee had a good relationship with Pag-IBIG, as shown by the fact that the housing-loan agency extended billions in loans to him. We understand Globe Asiatique had a good loan-repayment record and that its projects were seen to be sound and highly marketable.

We have been told that in 2007, then-Pag-IBIG president and now Marikina Rep. Romero Quimbo had spoken before the agency’s Board of Trustees on behalf of Lee. That meeting tackled, among other things, the two companies that Lee had; it was learned that Lee had joined up with Malaysian investors in one firm for housing projects, but that he had also put up his own Globe Asiatique to venture into medium- rise and condominium projects.

There is a possibility that the rush to put de Castro on the hot seat would divert the attention from the real culprit. The issue here is the alleged use of dummy borrowers, not the wisdom of Pag-IBIG’s decision to open a generous loan account for Lee’s projects—which many people agree had a good track record. Lee himself has admitted that there were instances when dummy borrowers were used. He says he himself wants to get to the bottom of this. He points to his marketing and sales representatives as the possible culprit.

The issue here is not “ghost housing projects.” The reference to this by some legislators is misleading as Pag-IBIG did not approve loans for nonexistent projects. The allegation is that dummy borrowers were used. So the probe should focus on the following questions: Who masterminded the use of dummy borrowers? Why? How did the use of dummy borrowers get past the scrutiny of the executives of Pag-IBIG who run the agency on a daily basis?

Encash’s advocacy

Encash, owner of a network of ATMs servicing hard-to-reach areas in the countryside, and Seedfinance, a nongovernment organization providing financial services to 61 member-cooperatives, will sign a memorandum of agreement for the country’s first-ever Hosted Core Banking System (HCBS) at the Top of the Citi, Citibank Tower, Valero Street, Makati. The HCBS will provide advanced savings deposits accounting for cooperatives and allow a platform to serve the bottom-of-the-economic-pyramid, that include financial inclusion and advanced financial services

This looming partnership between Encash and Seedfinance establishing the HCBS will enable cooperatives to offer financial services that before were enjoyed only by large-bank users. When running full steam, the HCBS will be offered to all cooperatives, countrywide.

Also, since the HCBS will be interfaced to the Encash ATM switch, which, in turn, is connected to the MegaLink switch, cooperative cardholders will eventually be able to withdraw funds from any ATM in the country. The business impact of the tie-up is expected to alter the banking landscape with a hitherto unheard-of banking innovation.

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