Pag-IBIG says Loren wrong; Noli spent only P50M for ads

MANILA, Philippines - Senator Loren Legarda accused Vice President Noli de Castro of spending millions of pesos of public funds for public service advertisements in television and billboards. But the head of Pag-IBIG Fund said only P50 million have been spent for the ads. Legarda called for a regulation in the use of government funds to support the political ambitions of those occupying high positions in the government. She said the advertising industry estimates that De Castro's office has spent roughly P200 million of taxpayers’ money so far for his public service ads. “Equating that with an average low cost housing unit valued at P350,000, that's around 570 housing units for 570 families thrown to waste. Where's public service there?" she said. Lawyer Romero Quimbo, president of Pag-IBIG Fund, however, said that based on initial estimate, De Castro’s Pag-IBIG commercials from August 2007 to the present are estimated at P50 million. In a telephone interview by GMANews.TV, Quimbo said the amount is nothing compared to the income that the housing agency has received since the vice president became its “endorser." “Since Vice President De Castro endorsed the Pag-IBIG loan program last year, the agency has processed loan applications with a record P24 billion in 2007 from P16 billion in 2006," Quimbo said. There are six housing agencies under the Office of the Vice President: the Housing and Urban Development Coordinating council, National Housing Authority, National Home Mortgage Finance Corp, Pag-IBIG, Housing and Land Use Regulatory Board, and Home Guaranty Corp. Legarda said it means De Castro “can still use and abuse public money to advance his political interest." “If they are sincerely concerned about finances, why are they spending for personal and political projections of Noli whose funding comes from the housing agencies?" she said. Quimbo, however, said his office is projecting another record breaking loan application that will reach as high as P30 billion. He said De Castro is “the most effective endorser that Pag-IBIG ever has." “Compared to the amount of loan that the agency has processed, P50 million didn’t even reach one percent," he said. Quimbo said De Castro did the advertisements for free. “He did not ask for a single centavo as his talent fee," he said. Quimbo likened the Pag-IBIG fund to a commercial bank that needs good exposure to become attractive to the clients. For the past years, he said Pag-IBIG is one of the top 10 companies with most profits. Quimbo said he respects Legarda’s observation and is willing to cooperate with the senator’s proposal to regulate the use of government funds in advertisement. “Politics is not our concern. Pag-IBIG was created to help members who wanted to have their own house," he said. Legarda and De Castro fought a bitter battle for the vice presidential post during the 2004 national elections, with the former accusing the latter of resorting to irregularities to ensure his victory. Legarda brought the issue to the Presidential Electoral Tribunal where it was junked. De Castro, meanwhile, is emerging as the administration's strongest bet for the presidency in 2010, although he has denied having political ambitions for 2010. - GMANews.TV