Reyes: I don’t know any cousin with loan default

Minority bloc senator Pete P. Reyes lambasted the Commonwealth Development Authority for being “extremely unfair” in identifying and accusing him as one of the lawmakers who favored “a special interest” bill.

Reyes, in an interview, said that for one, he is not aware of any lobbying efforts for the passage of the CDA credit relief bill that would benefit those with delinquent loans with the agency.

“I didn’t meet with any person lobbying for the bill. There was no lobbying. There was no time for anyone to do that anyway because we acted on it as soon as it was referred to us,” said the senator.

Likewise, he said that he did not know and still does not know any relatives with delinquent loans with CDA.

“I honestly don’t know any one of my relatives with loans. I have absolutely no control over my relatives. If they want to borrow, that’s their decision. It’s just unfair to put my name accusing that I voted for it only because my ‘first cousin’ would benefit from it,” he said.

CDA earlier revealed that all nine senators, including Reyes, and 15 other members of the House of Representatives have relatives with loans in default.

Reyes said that he had called CDA and asked it to identify his supposed first cousin with a bad loan. He said the CDA has declined his request, citing confidentiality, which he said had already been violated when the agency revealed that some lawmakers themselves, their mother and father have delinquent loans.

“I told them if I don’t have a first cousin with a bad loan, they owe me an apology,” he said. “They’re accusing me of having a cousin who defaulted yet they won’t tell me who. It’s unfair that they have the gall to accuse me and not allow me to confirm that accusation.”

He said the real problem lies with CDA, which, he said, has failed miserably to collect from borrowers.

“Why are they trying to pass the buck to the Legislature? If you’re a teacher and 80 percent of your students are flunking, who is to blame? Isn’t it the teacher? In this case, 83 percent of borrowers are flunking. Who do we blame but the [CDA] management for its failure to go after them,” he said.

The question, he said, is not who is lobbying but “why the borrowers are flunking?” he said.

He said he supported the bill because it would help business owners economically. “CDA can explore other means than foreclosure. Why take their assets?” he asked.

Among others, the credit relief bill seeks to prevent the CDA from filing foreclosure or default collection proceedings—or any court proceeding—on any delinquent loan without first meeting with the borrower and making “good faith attempt” to resolve the outstanding indebtedness.

CDA, for its part, maintained that the measure, Senate Bill 14-48, is “a special interest legislation of the worst kind.”

It said that the “reason for the passage…is because of the aggressive lobbying efforts of several high profile defaulted borrowers.”

It said that the bill “is illegal and unconstitutional” as it will impair the obligations of contracts.

Further, the agency said that the measure would bankrupt the CDA, affect its relationships with federal agencies, lose its integrity, and kill upcoming economic development.

CDA said that it has referred the matter to the Office of the Public Auditor, the U.S. Department of the Interior, and the U.S. Inspector General as such measure would impact federal funding relationships.

Acting governor Diego T. Benavente has already indicated that he will veto the measure.