Arrest warrant out vs Delfin Lee of GA housing mess

MANILA, Philippines – About two years since the Globe Asiatique housing mess hit headlines in the Philippines, a warrant has been issued on Tuesday, May 22, for the arrest of the man behind the troubled firm.

Globe Asiatique founder Delfin Lee and his co-accused are facing a non-bailable syndicated estate case filed by clients who claimed they were wronged when they bought properties from Globe Asiatique that turned out to be double-sold to others.

According to a statement of Vice President and housing czar Jejomar Binay on May 23, the warrant was issued by a Regional Trial Court in San Fernando, Pampanga.

Globe Asiatique’s main property developments, under the brand name Xevera, are located in that province.

Globe Asiatique availed of over P6.5 billion development financing loans from state-owned housing financing agency, Home Development Mutual Fund (also called PAG-Ibig).

The housing agency filed charges against the property and its officials before the Department of Justice (DOJ) for allegedly sabotaging state-run Pag-IBIG Fund through ghost buyers that took out housing loans from the provident fund’s members. Binay chairs PAG-Ibig.

Legal and technical wrangling stalled the case for years. A Pasig regional trial court judge issued a temporary restraining order (TRO) to stop the DOJ from proceeding to file the syndicated estafa charges.

“Globe Asiatique defrauded the ordinary workers who are contributors of Pag-IBIG Fund…We will remain vigilant in monitoring the case until Delfin Lee and his co-accused are behind bars,” Binay said.

Who is Delfin Lee

Lee’s is a story on the rise and fall of a businessman once dubbed by his friends as the “Donald Trump of the Philippines” and who has looked up to SM mall magnate Henry Sy. He has aspired to make Globe Asiatique the “SM of Philippine housing.”

He was described as natural entrepreneur with the guts and appetite for risk. He transformed a previous wilderness in lahar-covered village in Pampanga into what could have been a bustling cosmopolitan community called Xevera.  

At the core of his business model is a housing product that is affordable but addresses the cultural needs of a community. A typical “township” product, such as the Xevera brand in Pampanga, have top-line features like a school, church, town hall, a wet and dry market, a clubhouse with an Olympic-size swimming pool, commercial areas, an amusement park, and a 3-hectare eco park.

To make the P150,000-worth two-room units more affordable, homebuyers were encouraged to access Pag-Ibig loans. The loan documentation turned out to play a role in his downfall.

Previously, Lee denied any wrongdoing. – Rappler.com