Case Summary (G.R. No. 109666)
Background of the Community Mortgage Program
The Community Mortgage Program was launched in 1988 as part of the Unified Home Lending Program, providing a mechanism for community ownership of land to assist residents of impoverished areas. Key stakeholders included the NHMFC, Housing and Urban Development Council (HUDC), and the Presidential Commission on Urban Poor (PCUP). The program aimed to help beneficiaries acquire titles to the land they occupied by facilitating low-income financing through accredited organizations.
Purchase and Financial Transactions
On December 19, 1988, an appraisal valued a parcel of land in Angeles City, Pampanga, at P60.00 per square meter. This property later became the subject of a loan application by the Sapang Palay Community Development Foundation, Inc. (SPCDFI) for various mortgage projects, including one significant loan of P34,000,000.00 allocated to the ALPRAC-Alyansa ng Maka-Maralitang Asosasyon at Kapatirang Organisasyon (AMAKO). Subsequent actions included multiple applications and modifications to the loan request submitted by SPCDFI, focusing on acquiring the specified land.
Audit and Findings
An audit conducted by Lakambini Razon revealed irregularities regarding the AMAKO loan disbursement. A Memorandum noted multiple grounds for disallowance, including the lack of essential documentation, misclassification of property usage, excessive expenses, and the dubious valuation of the property in relation to its actual market value. These findings were further corroborated by reports indicating failure to submit pertinent lease purchase agreements and the existence of open spaces on the proposed site, which contradicted earlier representations.
Commission on Audit Decisions
After the NHMFC’s officials initially contested the audit findings, COA affirmed its disallowances in Decision No. 2700 on February 19, 1993. The decision upheld individual responsibilities of the key NHMFC officers, including the petitioners, for the flawed loan disbursement. The audit established that their roles in processing and reviewing loans mandated a high level of care to ensure compliance with established policies and procedures.
Petitioners' Arguments and Refutation
The petitioners challenged the decision on grounds of lack of direct culpability, stating that their actions did not amount to negligence or fraud. They argued they merely executed their duties and contended that the failures in the transaction were attributable to other parties involved in the loan proc
...continue readingCase Syllabus (G.R. No. 109666)
Case Overview
- The case is a petition for certiorari filed under Rule 65 of the Rules of Court, seeking to annul (1) Decision No. 2700 dated February 19, 1993, by the Commission on Audit (COA); (2) a memorandum dated April 10, 1991, from the Corporate Audit Office of the COA; and (3) a memorandum dated September 3, 1990, from the resident auditor of the National Home Mortgage Finance Corporation (NHMFC).
- The case revolves around the post-audit findings regarding the NHMFC's disbursements for the acquisition of land under the Community Mortgage Program (CMP).
Petitioners and Their Roles
- The petitioners are career service professionals of the NHMFC:
- Rogerio R. Olaguer - Manager of the Community Mortgage Group (CMG).
- Ernesto S. Salvador - Chief of Division, Project Evaluation, Monitoring and Relations Division.
- Irma R. Fuentes - Chief of Division, Documentation and Processing Division.
Background of the Community Mortgage Program
- The NHMFC is a government corporation tasked with implementing the National Shelter Program, aimed at providing home financing to lower-income groups.
- Established in 1988, the CMP facilitates community ownership of land for residents in blighted areas through low-income financing and partnerships with accredited organizations.