Real estate developer Delfin Lee, Chairman of Globe Asiatique (GA) Holdings, is now seeking redress against Home Development Mutual Fund (PAG-Ibig Fund) for the immediate return of the P630 million held in escrow by the agency almost 15 years ago.
Despite the affirmation issued by the Supreme Court in 2018 on the summary judgement issued by a Makati Regional Trial Court in 2012, the matter of returning the fund to the firm remaines in limbo, said in a press statement issued by Lee's camp.
In 2011, Lee and GA have filed a civil case against Pag-Ibig, demanding the return of the money before the Makati Regional Trial Court.
The Makati RTC found GA and Lee entitled to specific performance and damages and ordered HDMF to comply with its obligations, including the release of loan take-out proceeds, to accept the replacement buyers and to release the titles of those which have fully paid.
The same court stated that GA replaced defaulting accounts with buyers who were admitted without any problem by HDMF and the mechanism for the buyback of accounts and off-setting of accounts perfectly worked, Lee's group added.
Since Pag-Ibig has cancelled its collection servicing agreement with GA, Lee insisted that the agency has no reason to hold on to the money.
But HDMF suddenly refused accepting the replacement buyers, refused to off-set accounts, terminated the funding commitment agreement (FCA) and collection servicing agreement, refused to accept remittances of GA and started withholding the release of the titles of fully paid accounts, the press statement added.
As shown by a Supreme Court decision rendered en banc last 2018, under the memorandum of agreement and funding commitment agreements (FCAs) with HDMF, GA said it was required to meet specific financial commitments, allowing Pag-Ibig to mitigate if not eliminate risk associated with lending its funds to Xevera I and II buyers by shifting it back to the developer.
GA said it was required to enter into a five-year back money backed-guarantee,
compared to the usual two years for other developers.
If a buyer faulted for three consecutive months or if there was a breach of warranty such as unqualified borrowers, Lee said his company was obligated to buy back the loan account from Pag-Ibig.
The GA claimed this was a huge gamble on its part but agreed to it to be able to comply with another condition imposed by HDMF for the project, and that is that they maintain a performing accounts ratio (PAR) of 96 percent.
To ensure high performance, GA said it also had to agree to an automatic offsetting mechanism. If a buyer failed to pay, HDMF could subtract the unpaid dues from P630 million in GA funds it held in escrow as buyback guarantee.
Lee's camp said HDMF’s money was safe.
When around 200 accounts defaulted on their payments, GA said it bought them back.
Once bought back, GA had the right to resell the units.
Under a memorandum of agreement between HDMF and GA, the power to approve Pag-Ibig memberships and loan application of members who bought units from GA was also later exclusively vested on HDMF and GA was limited to loan counselling, the press statement added.
But GA, which serves as a guarantor, found buyers of about 1,000 units to be suspicious and so it informed Pag-Ibig about it.
Lee and four others were charged with syndicated estafa when they allegedly submitted names of fictitious buyers and documents to Pag-Ibig Fund as housing loan applicants/buyers of GA’s Xevera projects in Pampanga.
There were also accusations that GA engaged in double sale of its unit in Xevera 2 filed by 27 homebuyers but the suit filed by alleged victims was dismissed.
Last February 25, 2026, RTC Branch 42 Acting Presiding Judge Joel Bantasan granted the three demurrers to evidence and dismissed the case against Lee and his companions.
A demurrer to evidence is a motion filed in court after the prosecution rests their case, arguing that the evidence presented is insufficient to prove the case.
According to Bantasan, the prosecution failed to establish the elements of the crime of estafa or any lesser offense necessarily included therein which warrants the dismissal of the criminal action on demurrer.
Lee was charged in 2011 of large-scale estafa, went on hiding, and arrested in 2014 despite the dismissal of the court of appeals of the case and cancellation of his warrant of arrest.
On the day he was arrested, Lee filed a writ of habeas corpus with the Court of Appeals but a temporary restraining order was issued by the Supreme Court stopping all legal actions on Lee’s case.
He was brought back to the Pampanga provincial jail where he stayed for four and a half years.
The SC later decided there was no syndicated estafa and was granted the right to post bail after the charges were downgraded to simple estafa. Lee was released in 2018.
Lee said he wants to help the government solve its long-standing housing problem. The developer claimed that he can only pursue this dream if PAG-Ibig Fund will return his money, in order for him to re-start his life and business.