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| MILLIONS IN LOANS? Documents show that key INC officials were signatories in loan agreements to fund the Ciudad de Victoria project, which includes the Philippine arena. |
The late INC executive minister Eraño Manalo once said, 'Ang Iglesia ni Cristo ay walang utang kahit na saang bangko. Ang Iglesia ni Cristo ay hindi nagsasanla ng mga titulo ng lupa para lamang makakuha ng pondo.'
By Katerina Francisco for RAPPLER
Published 12:59 PM, July 27, 2016
(INC 102 Founding Anniversary)
(INC 102 Founding Anniversary)
MANILA, Philippines – It was touted as a world-class structure fit to showcase the growing clout of homegrown Philippine church Iglesia ni Cristo (INC). On Wednesday, July 27, the influential church celebrates its 102nd year.
Two years ago in 2014, the Iglesia opened the Philippine Arena, the world’s largest indoor theater, to widespread attention: an P8.7-billion ($200 million) megastructure that served as the centerpiece of the sprawling 75-hectare Ciudad de Victoria complex in Bulacan.
Conceived, designed, and envisioned as a world-class stage for local and international events, the arena has played host to several events: from the INC’s centennial celebrations, to a concert by local celebrity tandem AlDub, and a performance by American pop superstar Katy Perry.
An expert on sociology of religion, Jayeel Cornelio said of the Iglesia ni Cristo in a previous interview that the Philippine Arena "is an establishment, is a marker, of what they (INC) are right now in the 21st century. They're not a religion in the Philippines. They're a religion in the world.”
Funds for the arena, the INC said, came from the donations of its members, a practice that aligns with the teachings of the church’s second executive minister, the late Eraño “Ka Erdy” Manalo.
In some of his messages to INC members, Ka Erdy had emphasized that the INC should spend within its means, and denounced the idea of the church incurring debts to fund its projects.
Documents obtained by Rappler, however, showed that INC officials had engaged in agreements with two banks, to obtain a P1.137 billion loan to partially fund the construction of Phase 1 of the Ciudad de Victoria project.
According to recitals in the loan documents, Phase 1 of the project includes the construction of a “multi-purpose indoor arena, and certain commercial and retail buildings and structures.”
But several amendments to the agreements showed that INC leaders had asked for additional amounts of up to P3 billion to repay the existing loan.
To secure these loan agreements, at least 61 INC-owned properties – ranging from church sites to residential and agricultural areas in Metro Manila, Nueva Ecija, Rizal, Cavite, and Baguio – were put up as mortgaged collateral.
In addition to this, 317 condominium units in Quezon City, with a total market value of more than P1 billion, were also included as collateral.
Up to P3 billion requested
Based on the documents, the INC was one of the parties in loan agreements entered into by the Maligaya Development Corporation (MDC) with two banks: the Metropolitan Bank & Trust Company (MBTC) and the Asia United Bank Corporation (AUB).
MDC, the borrower, was represented by Glicerio Santos IV, while the INC was represented by the church’s auditor, Glicerio Santos Jr. (READ: Part 1: Who is Glicerio Santos Jr in the Iglesia ni Cristo?)
Santos Jr was also the signatory for the Felix Y. Manalo Foundation (FMF) and the New Era University (NEU).
According to the memorandum of agreement among MDC, NEU, and INC, the church agreed to turnover the completion of Phase 1 of the Ciudad de Victoria project to NEU, with the participation of MDC.
NEU and MDC were to take part in the “financing, construction and development” of the project.
To finance this, MDC acted as borrower in a March 2014 omnibus loan and security agreement with lender MBTC. The latter agreed to provide P1,137,500,000 to partially fund the construction and development of Phase 1 of the project.
But in July 2014, MDC requested for P750 million from MBTC to repay its existing loan.
A month after that, MDC and MBTC entered into a second amendment to the omnibus agreement. MDC sought up to P3 billion to repay its existing loan, putting the total principal amount to up to P4,887,500,000.
Mortgaged collateral
To secure the loan, MDC and the third party mortgagors (those who mortgage their property) – INC and FMF – provided additional mortgaged collateral, covering 61 INC-owned properties. These properties ranged from church sites to agricultural properties to residential ones, located in various areas in Metro Manila, Nueva Ecija, Cavite, and Baguio.
In addition to this, 317 units owned by the INC in LIG Condominium in Quezon City were included as additional mortgaged collateral. According to the appraisal report, the units have a total market value of P1,000,317,000.
