Globe Asiatique’s ‘ghost towns’ C.R.O.S.S.R.O.A.D.S Jonathan De la Cruz 09/01/2010

Globe Asiatique’s ‘ghost towns’

C.R.O.S.S.R.O.A.D.S

Jonathan De la Cruz

09/01/2010
Calling SEC and PSE officials. Is it true as being reported that you have given the go signal for Globe Asiatique Realty Holdings Inc. to list its shares by the end of this month? The property developer owned by businessman Delfin Lee will reportedly offer more than 170 million common shares to the public from Sept. 15 to 22 preparatory to this year’s first PSE sanctioned IPO offering to finance a number of property projects including affordable townships in Pampanga and Cavite. The IPO prospectus indicates that the company plans to raise as much as P3.3 billion from this offering being underwritten by BDO Capital as lead underwriter with each share priced at a minimum pf P6.50. If these reports are true may we strongly advise you to kindly take a second, maybe even a third look, at this operation before you get yourselves and the public into a lot of trouble.

A leading newspaper just came out with a two part series detailing the various infractions committed by Globe Asiatique Realty Holdings in putting together the string of developments it is now offering to the public as the base of this IPO. Given the web of irregularities committed it will be a big mistake to let this IPO proceed as scheduled as it will not only add more salt to the wounds inflicted by the proponent on the housing sector but will probably sink the entire securities industry deeper into the pits.

The Globe Asiatique way

As detailed by Tonette Orejas, PDI investigative reporter, Globe Asiatique is at the center of a widespread and highly irregular scheme which has defrauded the main housing finance corporation, Pag-Ibig, of billions of pesos in loans to ghost recipients as an accredited developer under the agency’s Other Working Groups (OWG) program. The OWG pilot program involves the provision of housing for “workers who are not formally employed but earn through small businesses.”... MORE
Source:  The Daily Tribune

URL: http://www.tribuneonline.org/commentary/20100901com5.html