NHMFC EMPLOYEE GUILTY OF GRAVE MISCONDUCT
July 30, 2008

ACTING Ombudsman Orlando Casimiro of the Office of the Ombudsman ordered for the dismissal from service of Nestor Favila, former Head of the Special Projects of the National Home and Mortgage Finance Corporation (NHMFC) after he was found guilty of grave misconduct on a decision penned last April 25, 2008.

Jovita Sobrevilla, Leonila Betacora, Florante Padua and Ernesto Jimenez, members of the Nais Homeowners Association, Inc. filed the case after Favila extorted money from them for the approval of their loan application for the Community Mortgage Program (CMP).

The antecedent of the facts show that Nestor Favila asked from the complainants an amount of P500,000.00 allegedly to be given to the Board of the Housing and Urban Development Coordinating Council (HUDCC) as grease money to fast track the approval of the association’s 10 Million Peso CMP loan application which the complainant assented to. They, however, reported the matter to the HUDCC which in turn, requested the National Bureau of Investigation (NBI) to conduct an entrapment operation against Favila. The entrapment operation was made last June 23, 2005 which led to the arrest of Favila after he received P85,000.00 marked money from the complainants.

Vice President Noli “Kabayan” De Castro, concurrent Chairman of the HUDCC, warned the personnel under his office of the dire consequence of dishonesty and corruption. “Unscrupulous individuals do not belong in the government service. I will not allow anybody to defeat the noble objectives of the housing sector,” De Castro said.

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