BALIKATAN Housing Finance Inc. (BHFI) and the National Home Mortgage Finance (NHMFC) will earn a mark-up of P94.88 billion as a result of "corporate maneuvering to overprice and defraud the members/borrowers of their rights of legal redemption."

Davao City Federation of Homeowners (DCFHA) president Richy Nalagon bared this recently, and said it was based on the study conducted by CPA-lawyer Alberto Yap, the group's counsel.

What's your take on the Mindanao crisis? Discuss views with other readers

The study showed that before transferring the alleged Non-Performing Loans (NPLs) to BHFI, NHMFC had allegedly sold the NPLs to Deutsche Bank Real Estate Global Organization (DBREGO) for the sum of P5.12 billion.

The study revealed that NHMFC now manages and controls BHFI with 49 percent and DBREGO with 51 percent equity. This also defies earlier statement by NHMFC that BHFI is a different entity. The NHMFC and BHFI are one and the same entity, the study said.

Based on records, the market or appraised value of the various subdivision projects covered by the sale, inclusive of improvements, is estimated to be P100 billion.

Thus, BHFI is not collecting based on the transfer price of P5.12 billion but based on the appraised value with a mark-up of P94.88 billion.

The group, with the support of Councilor Danilo Dayanghirang, said it will fight for its right to decent and affordable housing, and demanded the truth behind the Balikatan-NHMFC partnership.

For more Philippine news, visit Sun.Star Dumaguete.

For Bisaya stories from Davao. Click here.

(November 20, 2008 issue)
Write letter to the editor. Click here.