WHERE Martin Romualdez goes, expect bad luck. Whatever he touches gets ruined.
This may as well be the case of a government-owned and controlled corporation that has reportedly lost (or bound to lose) a whopping P6 billion after being wooed (or coerced) to invest in EEI Corporation, a construction company that has been in a losing skid for years and wallowing in debt.
Created in 1978 by virtue of Presidential Decree 1530, Pag-IBIG Fund, which operates as a provident fund, is mandated to provide national savings programs and affordable shelter financing for Filipino workers.
WHAT WENT BEFORE
A year after President Ferdinand Romualdez Marcos Jr. took the helm of Malacanang, his cousin Martin bought 20 percent of EEI’s common shares for P1.2 billion despite being aware that the Yuchengco-controlled construction company wasn’t doing well.
A businessman by nature, Martin may have intended to tap EEI Corp. for the government’s flood control program. But things didn’t happen as planned. Hence, he sought a “buy-out” from EEI Corp. months after securing 20 percent of the company shares.
Without money, EEI can’t possibly buy back what they have already sold to the presidential cousin. This is where the powerplay took place.
WIELDING THE POWER
Martin isn’t just any other politician. Aside from being a presidential cousin, he was the Speaker of the House of Representatives at that time. In short, he wields the power to “make things happen.”
To cut the long story short, he was able to “convince” Pag-IBIG Fund to invest in a corporation that hasn’t been making money. The amount — a staggering P 6 billion.
The Pag-IBIG Fund investment into the EEI came in two forms. First if the “investible fund” amounting to P5 billion and another billion from the Pag-IBIG employees’ provident funds.
Under existing laws, Pag-IBIG Fund is allowed to make “wise” investments. There’s just one glitch, it doesn’t have approval from its board of directors.
CONNECTING THE DOTS
A lawyer that he is, Romualdez coursed the plan through his House ally, TUCP partylist Rep. Democrito Mendoza who happens to be the cousin of his wife Yedda Marie Mendoza-Romualdez.
Mendoza then coursed Martin’s request to his “best friend” who forms part of the Pag-IBIG hierarchy. Based on news reports, this person served as spokesperson of the partylist Mendoza is representing in Congress.
To cut the long story short, Pag-IBIG president and chief executive officer Marilene Acosta, signed the deal embarking on a P6-billion investment into the EEI Corp., without the approval of the agency’s board of directors.
Under existing laws, GOCC decisions (especially on matters concerning funds) should be approved by its board.
INVESTMENT PROSPECTS
With a P6 billion investment added to its financial portfolio, EEI Corp. in March 2025 released dividends to its shareholders, triggering a sharp increase in its stocks performance.
The next day, its shares dived again after Romualdez sold his stakes (he bought at P1.2 billion) for a whopping P3.75 billion. To date, EEI Corp. has yet to recover as its shares continue to plunge.
With a P6 billion investment added to its financial portfolio, EEI Corp. in March 2025 released dividends to its shareholders, triggering a sharp increase in its stocks performance.
The next day, its shares dived again after Romualdez sold his stakes (he bought at P1.2 billion) for a whopping P3.75 billion.
To date, EEI Corp. has yet to recover as its shares continue to dive. When Pag-IBIG bought the 60 million shares of preferred “D” shares in December of 2024, the price of the EEI common shares was at P3.60. Now it continues to drop at P2.16 at present.
The breakdown of the P6 billion investment for the 60 million shares of Preferred “D” shares was bought at P100 per share. Today, the rate of EEI’s preferred shares series “B” is now traded at P95.50. There is no available price for series “D” as of present nor being traded at all.
With EEI Corp. on a sustained skid, there is a slim chance that Pag-IBIG Fund would be able to earn — at least recover its investment.
SIMILARLY DISADVANTAGEOUS
Even before the Pag-IBIG Fund brouhaha was exposed, there were similar instances involving government officials who were charged for bypassing the board of the agency they’re supposed to protect.
Arnell Ignacio, former administrator of the Overseas Workers Welfare Administration (OWWA) was dismissed in May 2025 by the President for an alleged anomalous P1.4 billion land acquisition deal that reportedly bypassed the OWWA Board of Trustees. A graft complaint against him was filed with the Office of the Ombudsman in July 2025.
Government Service Insurance System (GSIS) President and General Manager Arnulfo Veloso was slapped with a six-month suspension by the Ombudsman over a P1.44-billion investment in Alternergy, a renewable energy firm.
Will the President apply the same strictness to Pag-IBIG Fund CEO Marilene Acosta over a P6-billion for a blunder?
