HGC scored for rejecting settlement offer for Smokey project

Photo by Robert Viñas / PCOO

MANILA — State-owned Home Guaranty Corporation (HGC) was scored for rejecting the P2.9-billion settlement offer of businessman Reghis Romero II for the long-standing Smokey Mountain Development and Reclamation Project (SMDRP) dispute.

House lawmakers said that the offer could already address the financial problems of the firm.

Romero offered Vice President Jejomar Binay, Chairman of the HGC to advance P2.9 billion to HGC to settle its exposure to the SMDRP.

But the next day following the offer, the HGC rejected the offer citing that the amount is not enough and that an intra-corporate dispute is pending between Romero and his son, Michael, over the ownership of Harbour Centre Port Terminal Inc.

Quezon City Rep. Winnie Castelo said that HGC could already stop the P500,000 a day in interest expenses that are shouldered by the Filipino taxpayers.

Castelo added that the firm’s denial of the offer is  a “blatant disregard” to their responsibility of settling their disputes.

“We construe this as a blatant disrespect to all the  offices who recommended that HGC and RII sit down and start mediation. The issues being raised prove to me support the conclusion that they really do not intend to sit down with them,” Castelo said.

Ako Bicol partylist Rep. Rodel Batocabe said that HGC’s rejection of the offer without submitting a counter-offer clearly manifests that it is not interested in mediating with the businessman.

“You (HGC) appeared here twice and you consistently said the HGC is very much willing    to settle. But between us lawyers, the bottom line of this letter is we do not want to settle. RII Builders is offering cold cash and yet (you are saying) we do not like that offer and we just want our exposure of P5.2 billion. There is not even a counter-offer,” Batocabe pointed out.