Republic of the Philippines Department of Finance Securities and Exchange Commission SEC Bldg, EDSA, Greenhills, Mandaluyong City In Re: ANG BAGONG LAHING FILIPINO SEC Admin. Case No. 05-08-96 DEVELOPMENT FOUNDATION, INC. For: Revocation of Corporate Registration ORDER For consideration of the Commission is the prayer of petitioner Compliance and Enforcement Department for the revocation of the certificate of respondent ANG BAGONG LAHING FILIPINO DEVELOPMENT FOUNDATION, INC., as contained in the Petition for Revocation of Certificate of Registration dated 28 April 2008, On 26 May 2008, this Commission issued an order requiring respondent to file its ‘Answer to the petition for corporate registration within fifteen (15) days from receipt of the said Order. The Order was personally delivered to its principal place of business but the server of the Commission was told that the respondent is no longer located thereat. The facts of the case are as follows: Respondent ANG BAGONG LAHING FILIPINO DEVELOPMENT FOUNDATION, INC. (“ABLFDFI”) was registered with this Commission on 18 January 2002 and was issued Certificate of Registration No. A200200833.' The principal place of business of respondent is at 235 Salcedo St., Brgy. San Lorenzo, Legazpi Village, Makati City. The foundation was organized for the following purposes: “1. The Foundation shall assist the poor and less privileged people in our communities to acquire self-sustaining knowledge on cottage industry and livelihood and provide them assistance to acquire financiaV/humanitarian assistance. 1 Annex “A” of the Petition.2. The Foundation shall facilitate in cooperation with other non- governmental and government agencies health care activities, the cost of which in medicine and services the Foundation will source out from donations and contributions. 3, The Foundation shall spearhead programs aimed at giving educational scholarship in local and foreign schools to deserving benefi ies. 4, The Foundation shall assist in national economic recovery endeavors by advocating an urgency to expedite the recovery of claims of wealth from persons indebted to the Filipino people, and to advocate a conscientious allocation thereof to every Filipino Family as its means of economic capital.” * In a letter dated 22 January 2003 and addressed to petitioner, Mr. Stanley C. Tabiando, Provincial Director of the Department of Trade and Industry (“DTI"), Northem Samar Provincial Office, informed petitioner that a corporation, the East Pacific AAA Development Foundation, Inc. (“EPAAAFT"), which was already revoked by the SEC, was continuing its operations under ABLFDFI. Director Tabiando sought advice from the petitioner as to what course of action to take, since it was reported that the foundation members claim that DTI has endorsed their project proposals, when it fact, it has not.? In a Memorandum dated 8 January 2003, Director Annie Gonzales Tesoro of the SEC-Baguio Extension Office informed the petitioner that a certain Alvin Alvincent Almirante, a former trustee of two revoked corporations, EPAAAFI and West Pacific AAA Foundation, Inc. (“WPAAAFI"), has allegedly formed a new foundation named “Bagong Lahing Filipino” and that Almirante's recruits in the two revoked corporations are being, asked to become members of the new corporation. It was stated in the said Memorandum that Almirante is using the alias “Alvin Gooc Bersales.”* Director Tesoro furnished the petitioner with a list of persons who have complaints against Bagong Lahing, Inc., together with the addresses of the complainants! EPAAFI and WPAAAFI were incorporated for philantrophic purposes. In an Order dated 14 October 2002, the Commission En Banc revoked the corporate registrations of the two foundations for serious misrepresentation as to what the corporation can do or is doing to the great prejudice of or damage to the general public, pursuant to Section 6, paragraph (2) of PD 902-A® In said Order, the Commission stated that there was direct and overwhelming evidence of misrepresentation against respondent foundations and Annex 'D", supra, Annex “D- ‘Annex "M.!Almirante. On 01 February 2003, the petitioner received a verified “Joint Affidavit Complaint” from the following: Ms. Rowena S. Ebba, Josie S. Mangalip, Raquiel Q. Aradanas, Elisa M. Gonzaies, Hilda M. Bagsan, Carmen W. Tauli, Romeo A. Amiten, Sr. and Willie L. Padili. The complainants alleged that they were regional directors and provincial coordinators of the East and West Pacific AAA Foundation and the ABLFDFI. They recruited members for the said foundations, thinking they were serving the poor. Each member was required to pay Two Hundred and Sixty Pesos (PhP 260,00) each. ‘The complainants averred that when the Commission revoked the registration of the two AAA foundations, each member had to change their IDs to ABLFDFI IDs. They also claimed that all financial collections were remitted to the personal account of Almirante, also known as Alvin Gooc Bersales, and not in ABLFDFI's account.” Ina letter’ dated 07 August 2003, Director Tabiando informed petitioner that former members of EPAAAFI and WPAAAFI reported to him that ABLFDFI is operating in Catarman, Northern Samar and that it is being managed by the same group of people who managed the two former foundations. The former members expressed their fears that ABLFDFI's promise of housing assistance to its members will never materialize, in the same way that the two foundations’ promises of livelihood loan assistance did not materialize, Attached to the letter was a list of the Regional Directors and Provincial Coordinators of ABLFDFI, a copy of a memorandum regarding its Pabahay program, and its Articles of Incorporation. On 17 October 2003, the petitioner called the ABLFDFI officers for a clarificatory conference. Only three (3) of its fifteen (15) newly elected trustees attended. Mr. Alvin Alvincent Almirante did not attend. During the conference, the three officers of ABLFDFI categorically admitted that ABLFDFI is just a continuation of EPAAAFIA and WPAAAFI, and that Almirante is the Chairman and Founder of all three (3) foundations. The officers refused to reveal théir bénefactérs and donors by reason of confidentiality. Atthe ‘end of the conference, the officers committed that they will submit the documents required of them by the petitioner, ABLFDFI submitted these documents on 22 October 2003.” On 12 July 2005, Director Jaime Lasaro L. Olmos of DTI referred to the petitioner the letter of Ms, Capistrana J. Tagapolot! for appropriate action. In her letter dated 04 July 2005, Tagapolot narrated that she became a member of ABLFDFI in 2000. She was offered a piece of land by the foundation for a low price. She paid Three Thousand and Five Hundred Pesos (Php3,500.00) for a piece of land with an area of Fifty (50) square meters. However, said land was never delivered to her. Tagapolot attached to her letter copies of 7 Annex, 8 Annex" 9) Page 5 of the Petition. 10 Annex "J," supra.the receipt!' issued by ABLFDFI on 28 January 2005 for the purchase and a copy of an instrument” denominated as “Real Rights of Possession and Part Ownership” over a lot situated in Cabuyao, Laguna. It was signed by Almirante. No specific description of the location of the land was indicated therein. On 19 July 2006, the Office of the Vice President referred to the Commission a letter from Ms, Carmelita Cabeltes, a former member of the EPAAAFI and WPAAAFI and ABLFDFI. In her letter? dated 30 June 2006, Cabeltes claimed that Almirante can no longer be found and that almost all members of the foundations were victimized by Almirante. Petitioner also points out that a visit of ABLFDFI's website would show the following programs, under the name of EPAAAFI Low Cost Housing; Scholarship Programs; Medical Outreach Program; Tulong sa May Kapansanan Program; and Livelihood Loan Assistance."* yaene Copies of ABLFDF1's programs, vision and strategy, printed out from its website are attached to the petition as annexes."® Petitioner alleges that the Audited Financial Statement'® submitted by ABLFDFI shows that it is not capable of implementing its assistance programs. A perusal of the document shows that the membership contributions compose all of the income of ABLFDFI. There is no showing in said statement of how much the foundation has actually spent for its supposed philantrophic programs. The foundation was not able to show proof either, of any funding from any donor or benefactor. ‘The petition and its supporting: documents amply show-that ABLFDFI was created. merely to continue the activities of EPAAAFI and WPAAALI, and that the foundation is being used to collect money from its members who are misled into believing that ABLEDFI is performing philantrophic functions. If ABLFDFI is allowed to continue its corporate existence, it would be able to commit more fraud on the public. Evidently, a thorough investigation was conducted by petitioner on this matter and ABLFDFI was given the chance to file its Answer to the petition. Attempts were made to serve respondent with a copy of the Order requiring it to file its Answer but to no avail, for 13 Annex “K, 14 Page 7 of the Petition, 15 Annexes “L,” “L-1” and "L-2,” supra.subject corporation is no longer located at its principal place of business, as indicated in its General Information Sheet. The Commission has to act on the matter in the most expeditious manner possible. To do otherwise would provide ABLFDFI with more time and opportunity to cause damage or prejudice to the public, Accordingly, pursuant to Section 6, paragraph I (2) of PD 902-A for serious misrepresentation as to what the corporation can do or is doing to the great prejudice of or damage to the general public, We hereby revoke the primary franchise of respondent foundation. WHEREFORE, the certificate of incorporation of ANG BAGONG LAHING FILIPINO DEVELOPMENT FOUNDATION, INC. (SEC Reg. No. 4200200833) is hereby REVOKED. Let a copy of this Order be furnished to the Company Registration and Monitoring Department so that it may be attached to the corporate files of the respondent foundation. Lastly, let copies of this Order be furnished to the Economic Research and Information Department and all the extension offices of this Commission for dissemination to the general public. SO ORDERED. Mandaluyong City, 3 July 2008. Fittre B/BARIN Chairperson MA. JUANITA E. CUETO JESUS ENRIQYE G. MARTINEZ Commissioner Cfrmissioner ¢ RAUL J. PALABRICA THADDEUS/E. VENTURANZA Commissioner ‘Commissioner