Bitong group asks Sacobia Hills mgm’t to account for P900-M fund

Minority shareholders of Sacobia Hills Development Corp., led by businesswoman Nora Bitong, have asked the company’s management to account for the P900 million in funds raised from the pre-selling of golf and country club shares way back in 1997.

To ensure the protection of other minority shareholders of Sacobia and preserve whatever assets left of the company, the group of Bitong has asked the Securities and Exchange Commission (SEC) to look into the alleged mishandling of funds by management, headed by Reynaldo G. David, Jaime Koa, Donald Dee and Jose E.B. Antonio.

The group of Bitong, through Global Equities Inc. and BHC Holdings Inc., holds at least 29.73 percent of Sacobia, the owner and developer of True North Golf and Country Club Inc.

True North is a twin 36-hole golf course located within the Clark Special Economic Zone.

Bitong was the former chairman of Sacobia until she resigned in January 1998 due to management’s refusal to honor their prior agreement that the company’s by-laws be amended to allow her-as chairman of the board-to be directly responsible for the management of the funds.

"The purpose of this amendment is to allow Ms. Bitong to be directly responsible for the prudent management of the funds raised from the public so that the golf course can be completed and delivered to the investors within the specific target dates," lawyer Augusto San Pedro, the legal counsel of the group of Bitong said.

The group of Bitong said that after five years, the promised 36-hole golf course and other amenities have remained undelivered.

An ocular inspection of the site showed that Sacobia has totally ceased its construction and development and has totally abandoned the site. "Under the present circumstances, the golf course will never be completed," San Pedro said.

San Pedro claimed that Sacobia also failed to secure the Environmental Clearance Certificate from the Department of Environment and Natural Resources, causing further delay to the completion of the project.

"What is greatly alarming is that our clients have in their possession certain documents which would indicate that Koa, David, Dee and Antonio have not been circumspect in the handling of Sacobia’s funds. There is even information that the group has personally used the funds to purchase controlling shares in Hacienda Golf Club, a proposed golf course also located in the Clark Special Economic Zone which is in direct competition with True North," San Pedro pointed out.

San Pedro said the SEC should take all the necessary steps to safeguard the assets of Sacobia and ensure that criminal proceedings shall be instituted against all erring officials who have misused corporate funds for their personal use and benefit.

The group of Bitong has also taken strong issue to the fact that management of Sacobia has deposited the bulk of the funds raised from the pre-selling of True North shares in the Export and Industry Bank, a newly-formed bank at that time.

"Considering the financial crisis in 1997, Ms. Bitong believed that the funds should be deposited in a regular commercial bank with a proven track record and not with a starting bank with no track record," San Pedro said.

The group of Bitong also brought up the issue of favoritism in Sacobia’s policy on refunds of True North investments. "It appears that only persons close to Koa, David, Dee and Antonio were allowed to get a refund while investors associated with Bitong were denied refund of their investment.