OWWA made money on Smokey Mountain: Biazon - Malaya 08.25.2006

SEN. Rodolfo Biazon yesterday said the Overseas Workers Welfare Administration did not lose money in its investment in the Smokey Mountain project of R-II Builders and the National Housing Authority and instead increased its initial investment of P459 million to around P1.3 billion to P1.4 billion.

He said the agency actually invested well by negotiating a higher interest for its investment at 8.5 percent a year which allowed it to earn more than P800 million in just 10 years.
Biazon said the big loser in the Smokey Mountain project after R-II Builders defaulted at the maturity of the loans the bankrolled the project was the Home Guaranty Corp. which provided the insurance cover on the OWWA investment. HGC has been paying out some P80 million and P90 million a year to OWWA to represent the agency’s interest earnings from the Smokey Mountain project. – Dennis Gadil