The P172-million spent to advertise Pag-IBIG's housing loan program resulted in P78 billion housing loan approvals which the fund generated from 2007 to June 2009.

This was the declaration made by Jaime A. Fabiaña chief executive officer of the Home Development Mutual Fund (Pag-IBIG Fund), as they rallied behind Vice President Manuel “Noli” De Castro who is accused of using public funds in furthering his political ambitions.

“In fact, the Fund’s advertising expenditure is very conservative, only around one-fifth of one percent measured in terms of the total housing loan approvals,” Fabiaña added.

Fabiana said Pag-IBIG started to reduce its housing interest rate to as low as 6 percent in early 2006 but the housing loan approvals “did not pick up” amounting to only P16 billion in 2006.

In December 2007, the Fund launched an aggressive advertising campaign for its new housing loan program to announce its new low interest rates and extended repayment period with De Castro as endorser.

“Who else should we get? As Chairman of the Pag-IBIG Fund, he not only speaks for the institution in its commercials but is duty-bound to advance the housing mandate. VP De Castro is the ideal endorser for our program, as one of the most recognizable personalities in the Philippines, a respected broadcast journalist, and a trusted public figure. He lends his credibility to what he is endorsing, in this case, our housing loan program,“ Fabiaña said.

Fabiana also pointed out that De Castro did not receive a single centavo for his services.

“Other agencies would pay through the nose just to get an endorser of his caliber and stature,” Fabiana said.

In 2008, following Pag-IBIG’s aggressive marketing and advertising campaigns, housing loans jumped to P34 billion, exceeding its housing loan target for the first time.