Real estate developer Delfin Lee, chairman of Globe Asiatique (GA) Holdings, is now seeking redress against the Home Development Mutual Fund (PAG-IBIG Fund) for the immediate return of the PHP 630 million held in escrow by the agency for almost 15 years.
Despite a Supreme Court affirmation in 2018 of a summary judgment issued by a Makati Regional Trial Court in 2012, the return of the funds to the firm remains in limbo, according to a press statement from Lee's camp.
In 2011, Lee and GA filed a civil case against PAG-IBIG demanding the return of the money before the Makati RTC. The court found GA and Lee entitled to specific performance and damages, ordering HDMF to comply with its obligations, including releasing loan take-out proceeds, accepting replacement buyers, and releasing titles of fully paid accounts. The court noted that GA replaced defaulting accounts with buyers admitted without issue by HDMF, and the buyback and offsetting mechanisms worked perfectly.
Since PAG-IBIG cancelled its collection servicing agreement with GA, Lee insists the agency has no reason to hold onto the money. However, HDMF suddenly refused to accept replacement buyers, refused to offset accounts, terminated the funding commitment agreement (FCA) and collection servicing agreement, refused to accept GA's remittances, and began withholding title releases for fully paid accounts.
As shown by a 2018 Supreme Court en banc decision, under the memorandum of agreement and FCAs with HDMF, GA was required to meet specific financial commitments, allowing PAG-IBIG to mitigate risk by shifting it back to the developer. GA was required to enter a five-year buyback guarantee, compared to the usual two years for other developers. If a buyer defaulted for three consecutive months or there was a breach of warranty, GA had to buy back the loan account from PAG-IBIG. Lee called this a huge gamble but agreed to comply with another condition: maintaining a performing accounts ratio (PAR) of 96 percent. To ensure high performance, GA agreed to an automatic offsetting mechanism, allowing HDMF to deduct unpaid dues from the PHP 630 million escrow fund as a buyback guarantee. Lee's camp said HDMF's money was safe. When around 200 accounts defaulted, GA bought them back and had the right to resell the units.
Under the memorandum of agreement, the power to approve PAG-IBIG memberships and loan applications for GA unit buyers was later exclusively vested in HDMF, limiting GA to loan counselling. However, GA, as guarantor, found about 1,000 unit buyers suspicious and informed PAG-IBIG. Lee and four others were charged with syndicated estafa for allegedly submitting fictitious buyer names and documents to PAG-IBIG as housing loan applicants for GA's Xevera projects in Pampanga. There were also accusations of double sales of units in Xevera 2 by 27 homebuyers, but that suit was dismissed.
On February 25, 2026, RTC Branch 42 Acting Presiding Judge Joel Bantasan granted three demurrers to evidence, dismissing the case against Lee and his companions. A demurrer to evidence is a motion filed after the prosecution rests, arguing insufficient evidence. Bantasan ruled that the prosecution failed to establish the elements of estafa or any lesser offense, warranting dismissal.
Lee was charged in 2011 with large-scale estafa, went into hiding, and was arrested in 2014 despite the Court of Appeals dismissing the case and cancelling his arrest warrant. On the day of his arrest, Lee filed a writ of habeas corpus with the Court of Appeals, but the Supreme Court issued a temporary restraining order stopping all legal actions. He was held in Pampanga provincial jail for four and a half years. The Supreme Court later ruled there was no syndicated estafa, and he was granted bail after charges were downgraded to simple estafa. Lee was released in 2018.
Lee said he wants to help the government solve its long-standing housing problem but can only pursue this dream if PAG-IBIG Fund returns his money, allowing him to restart his life and business.
