R-II Builders chairman Reghis Romero II said the company is offering to reimburse Home Guaranty Corp. (HGC) and settle its P1.1 billion obligation to the Social Security System (SSS).
"In order to help the government from further incurring expenses in shouldering the cost of interest expenses amounting to P500,000 per day and assist in the reported liquidity issues of HGC, we are offering this settlement proposal to the government for consideration," Romero said in a letter addressed to Vice President Jejomar Binay and Finance Secretary Cesar Purisima.
said that once the settlement has been agreed upon, an initial P1 billion funds will be deposited.
"P1 billion will be deposited in a bank as part of the initial funds to settle HGC
's exposure, upon acceptance of HGC to proceed with the proposal of R-II
"The balance of P1.9 billion will be made available within 60 days in manager's check upon final agreement of the parties, court's approval of the same," he
noted that the proposal was made as an act of "goodwill," but HGC
should first cover all Smokey Mountain Asset Pool assets (SMAP) including National Housing Authority (NHA) receivables, its land titles and other pertinent documents to R-II Builders
before the delivery of the final payment.
is submitting this proposal without necessarily waiving its interest and rights.
This proposal is a gesture of goodwill and will eventually stop the accrual of cost of interest suffered by the government and to pave the way for a final resolution to the long standing issues hounding the SMDRP," Romero
"Likewise, issues with NHA will be settled separately in accordance with the decision of the Supreme Court and relevant contracts," he