MANILA, Philippines – The Office of the Ombudsman (OMB) has dropped the misconduct complaint filed by property development firm against seven Home Guaranty Corporation (HGC) officials, it was learned Tuesday.

In a decision, Ombudsman Merceditas N. Gutierrez cleared Gonzalo Benjamin A. Borlongan, HGC president; Elmer Nonnatus A. Cadano, executive vice president; Melinda M. Adriano, vice president, Guaranty Group; Rafael P. de los Santos, vice president, Asset Management Group; Corazon G. Corpuz, vice president, Corporate Service Group; Danilo C. Javier, vice president, Legal Group, and Jimmy B. Sarona, vice president, Management Service Group.

The complaint filed by Jerome R. Canlas of R-II Builders alleged that the HGC officials committed misconduct when they sold two parcels of land belonging to HGC with an aggregate area of 28,926 square meters to La Paz Milling Corporation for P384,715,800, or at P13,300.00 per square meter.

Canlas claimed that the sale of the properties was disadvantageous to the government, since there was a big disparity between the actual market value of the properties and their purchase price under the contract.

He said the difference between the actual fair market value of the properties and the actual purchase price is from P121,000 to P309,000. The respondents allegedly committed misconduct when they sold the properties at a relatively low price.

But the HGC officials argued that the sale of the properties may not be considered disadvantageous to the government since the purchase price exceeded the latest zonal valuation of the Bureau of Internal Revenue.