
The Home Development Mutual Fund, more commonly known as the Pag-Ibig Fund, on Tuesday asked the Court of Appeals to stop a Makati ruling ordering it to continue releasing money to borrowers of embattled Globe Asiatique Realty Holdings Corporation, whose president Delfin Lee is being pursued by authorities for a P6.65-billion syndicated estafa case. In an 85-page petition for special civil action for certiorari, the the HDMF contested a January 30 and December 11, 2012 ruling of Makati Judge Eugene Paras favoring Globe Asiatique. Earlier, HDMF had terminated its agreements with Globe Asiatique after a post-audit of the realty firm revealed that it “fraudulently fabricated hundreds of loan applications, using fictitious applicants/buyers and spurious loan documents.” In Paras’ rulings, however, he ordered the HDMF to enforce the terminated agreements again and release more large sums of money to Globe Asiatique. The petitioner said the judge only conducted “summary proceedings, without the benefit of a full-blown trial, all in the face of the massive and wholesale fraud perpetrated by GARHC against HDMF and its member-contributors.” The HDMF insisted that the termination of the agreements was “just and warranted” under Article 1191 of the Civil Code of the Philippines. The particular article states: “The power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply with what is incumbent upon him.” The HDMF asked the appeals court to issue a “temporary retraining order and/or a writ of preliminary injunction enjoining Respondent Hon. Eugene S. Paras Read More …