Binay, HGC did not receive DAP funds

Posted at 07/06/14 4:04 PM

MANILA -- Vice President Jejomar C. Binay and the Home Guaranty Corporation (HGC) did not receive any funds from the Disbursement Acceleration Program (DAP), HGC president Atty. Manuel R. Sanchez said Sunday.

“We have not received nor asked for P2.243 billion from DAP,” Sanchez said.

This, after recent reports said Binay, who is the chairman of the Housing and Urban Development Coordinating Council (HUDCC), received DAP funds through HGC and the National Housing Authority (NHA).

“The reports are apparently intended to malign the Vice President’s name as part of the demolition job against him,” Sanchez said.

He clarified that the amount, which was allegedly reflected in the Department of Budget and Management’s records, corresponds to the appraised value of the "air rights" above the Philippine National Railway (PNR) track from Buendia in Makati to the junction of Samson Road in Caloocan.

“What we are asking for is proper compensation for our transfer of the PNR air rights to the Department of Public Works and Highways. We bought it; it is only right that we get paid in return once we transfer it,” Sanchez said.

“We were surprised when we read the reckless reports claiming we got more than P2 billion when in fact, we have received no payment so far,” he added.

The "air rights," along with other assets, was conveyed to HGC in March 2003 after the agency paid the P1.38-billion obligation to investors of the failed Sariling Pabahay sa Riles (SAPARI) project.

Aside from the P1.38-billion guaranty call payment, HGC also shouldered the P1.083-billion project expenses.

The SAPARI was a joint-venture project among PNR, NHA, New San Jose Builders, Inc., and HUDCC in 1996. Funding for the project was raised through the issuance of bonds called Asset Participation Certificates, backed up by a pool of assets as security. HGC was mandated to guarantee the payment of the certificates.

As head of the housing sector, Binay serves as ex-officio chairman of the NHA Board and is not involved in the agency's operation.

Binay also acts as ex-officio vice-chair of the Board for HGC.

The Department of Finance secretary, on the other hand, functions as the ex-officio chairman of HGV.