MANILA, Philippines -- The Home Development Mutual Fund (Pag-IBIG Fund) is set to blacklist controversial real estate developer Globe Asiatique, according to the officer-in-charge of the state-run firm.

In a statement released Tuesday by the office of Vice President Jejomar Binay, who is also housing czar, Emma Linda Faria disclosed the agency had started blacklisting proceedings against Globe Asiatique.

The proceedings were "based on the results of our investigation," said Faria.

She explained that "as a condition for accreditation, developers guarantee against ineligible or fraudulent borrowers, non-completion of projects and fraudulent transactions. They also issue guarantees on loans against default within a period of two years. Developers also commit to buy back faulty accounts."

"A breach of any of these guarantees is ground for blacklisting developers, aside from failing to remit collections (under their collection service agreement with the Fund)," said Faria.

Faria revealed that "as of Aug. 31, 2010, the company (had) racked up notices of buyback totaling P1.1 billion for loans" of the Xevera housing projects of Globe Asiatique.

"While this amount is by no means small, this represents only half of one percent of the total assets of Pag-Ibig Fund and is fully collateralized," said Faria, noting "this will not affect the agency's financial stability and capability in providing the necessary services to them."

Like Binay, Feria assured Pag-Ibig Fund members that "their savings are safe" and "added safeguards to protect the integrity of the Fund are being put in place."

"The Pag-Ibig Fund remains firm in its commitment to protect its members' hard-earned savings. Our members need not worry about the safety of their savings," said Feria.

She stressed Pag-Ibig "funds are intact and will remain under their names and will be lent or released only to them for their benefit."

Faria also clarified "the agency's budget for services and lending operations, both for housing and short-term loans, as well as funds allocated for claims, remain unaffected by the discovery of spurious transactions involving property developer Globe Asiatique."

"We would like to assure our members that this will not affect the agency's financial stability and capability in providing the necessary services to them," she said.

Binay had ordered a "thorough probe" of the alleged housing loan irregularities involving Globe Asiatique, including the use of "ghost borrowers."

"We are ready to file the appropriate administrative, civil and criminal charges to protect the Fund," said Binay.

He has also directed the Pag-Ibig management to "take the necessary steps to prevent a repeat of the Xevera case and assure the members that their savings are being managed professionally."

Earlier this year, the Fund was "alarmed with its discovery of spurious transactions in Globe Asiatique's Xevera housing projects in Pampanga, which involved fake borrowers," recalled Faria.

The Fund "immediately implemented protective measures, including the suspension of Globe Asiatique's access to the agency's housing program express lane facility," as well as a "full audit of all Xevera accounts."

"The Fund also issued notices of buyback for accounts with confirmed breach of warranties. Likewise, Pag-Ibig terminated Globe Asiatique's collection servicing agreements given the latter's failure to remit payments to the Fund," said Faria.

On Tuesday, Faria also assured accredited land developers and borrowers that the Fund will continue processing qualified housing loan applications.

"The Fund's housing program has not just made us the biggest provider of housing loans. It showed that we are one of the more stable and viable government institutions in the country today. Our institutional strength and financial stability have enabled us to not just continuously honor our obligations to our members, but also allow the Fund to meet its mandates," she added.