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Manila Bulletin devider Philippines devider National devider COA: 4 HDMF employees liable in P33-M loans by dummy borrowers

COA: 4 HDMF employees liable in P33-M loans by dummy borrowers

Published Jul 25, 2025 12:01 pm
The Commission on Audit (COA) has denied the appeal of four employees of the Home Development Mutual Fund (HDMF) Regional Office VIII to exclude them from liabilities in the P33.189 million housing loans of 47 dummy borrowers.
Denied were the motions for reconsideration (MRs) filed by HDMF Mortgage Loan Specialist Raquel R. Pomida, Records Officer II Emily B. Pretencio, Loans and Credit Evaluator III Rizalito Loreche, and Records Custodian Mark Anthony G. Faraon.
They contested the COA’s Dec. 27, 2016 decision which affirmed Notice of Disallowance (ND) Nos. 2009-01 to 2009-47 on the payment of housing loan take-outs of P33,189,000, and held them liable.
The NDs were issued after the discovery of irregularities and breach of warranties on the developmental loan applied for by Ray F. Zialcita for the development of Villa Perla Subdivision (VPS) in Barangay Combado, Maasin City, Southern Leyte.
Zialcita filed 79 housing loan applications with the HDMF RO VIII under the Window I Scheme, wherein the developer receives, evaluates, and approves the housing loan applications of HDMF's member-borrowers. However, a number of purported borrowers later complained that they did not avail themselves of the said housing loans.
The audit team found that 47 approved loan applications with a total take-out amount of P33,189,000 were under the names of dummy borrowers.
The developer was made liable in the NDs, as well as the HDMF officials and employees who did not do their due diligence in the processing and release of loans.
The four HDMF employees who filed the MRs argued that the COA lacked sufficient evidence to hold them liable for the irregularity and claimed that they had no way of detecting the irregularity in the transactions.
However, the COA found their arguments bereft of merit. "The NDs were the result of a number of irregularities and breach of warranties discovered in the developmental loan applied by Mr. Zialcita for the development of VPS in Barangay Combado, Maasin City, Southern Leyte," the COA’s decision stated.
"In this case, movants Pretencio and Pomida were held liable as they prepared and reviewed the documents which cover the inspection and validation of documents prior to the release of loan take-outs; while movants Loreche and Faraon, as appraisers, were responsible for signing the confirmation of appraisal," it added.
Had they exercised diligence and prudence in the performance of their official functions, the COA said that the payment of fictitious housing loans and take-outs could have been avoided.
Thus, it said, “they shall remain liable under ND Nos. 2009-01 to 2009-47 on the payment of housing loan take-outs of 47 dummy borrowers, in the total amount of P33,189,000."
The 10-page decision was signed by Chairperson Gamaliel A. Cordoba and Commissioners Roland Cafe Pondoc and Mario G. Lipana.
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