From $30,000 to $300,000: How Did It Balloon? FCT Asked

Volume 2, Issue No. 14

OPINION/COMMENTARY

/ News That Fears None, Views That Favor Nobody /

. . . . . A community service of The Filipino Web Channel (TheFilipinoWebChannel@gmail. com) and the Philippine Village Voice (PhilVoiceNews@gmail.com) for the information and understanding of Filipinos and the diverse communities in North America . . .

 Our latest as of Thursday, September 3, 2020 

~ A new question emerges even before the Filipino Centre Toronto could publicly account for the purported payment of $678,000 to alleged creditors, four of them officers and volunteers, after the non-profit sold its building for $5.9 million, and bought another for $1.9-million. That means it still has lots of money, $4-million actually, in its hands. With that, another claim has surfaced. What was originally thought to be legal expense amounting to $30,000 has grown by an astonishing 900 percent to $300,000.

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WHERE'S THE $4-MILLION PROCEEDS OF SALE?

FCT 'Debts' Surface After It Sold Its Building

By ROMEO P. MARQUEZ

Editor, The Filipino Web Channel

"Money in the bank is not the real asset of a community centre; integrity is." - Maria CJ De Villa

TORONTO - For three long years, some members of the Filipino Centre Toronto have repeatedly and patiently asked its officers to shed light on the non-profit's financial situation following the sale of its building that had brought in a huge windfall - $5.9 million, yes, that's five million nine-hundred thousand dollars.

Each time they sought clarification through open letters and published reports dating back to September 2017, their requests were met with silent indifference. On a few occasions they thought they would get answers, they were treated to a choreographed display of evasive tactics.

This summer, FCT had canceled its yearly extravaganza owing to the coronavirus pandemic. But it looks forward with optimism to staging golf and basketball tournaments in June 2021, hopefully, it said in newspaper ads.

That just about previews the mindset in FCT - have fun, splurge for it, and enjoy the moment - while setting aside community concerns about the money it had grossed from selling what its officials had dubbed as a rat- and cockroach-infested building in downtown Toronto. (Video at: https://www.youtube.com/watch?v=uw8uM9cUObQ).

"Many people claim that FCT may well be the wealthiest non-profit Filipino community centre in Canada," writes Maria CJ De Villa in an article published this week. She's one of the members demanding transparency and accountability in FCT. (Full story at: https://www.balita.ca/is-the-filipino-community-centre-fct-in-denial/).

"Why?" she asks, and answers the question herself: "Because with the liquidation of its building last January 2017, its coffers swelled to a staggering $5.9 million (gross sale). While it would have been cause for a glorious celebration, it opened up instead a potful of controversies involving questionable financial and governance practices."

The controversies and questionable transactions she references involve the unforeseen appearance of hitherto unknown payables amounting to $678,000. That amount of liability surfaced soon after FCT had acquired a one-story structure, now housing its offices, in a Scarborough neighbourhood for $1.9 million. (Video at: https://www.youtube.com/watch?v=5MDQoagXLlQ).

The $678,000 FCT payments have raised conflict-of-interest questions as some of the recipients are supposed to be non-remunerative for members and officers of the organization.

Another cause for great concern is supposedly the remaining balance of legal fees initially estimated at $30,000 (of which members were not informed), but which swelled by 900 percent to $300,000. "How did it balloon to $300,000 right after the sale of the building?" Ms. De Villa asks.

The purchase of that property left a princely sum, four million dollars ($4-million), for FCT to utilize for its projects. Except that nothing was heard of since on how the money was being spent. Then FCT sprang what Ms. De Villa calls "payable bombshell". 

"It would have been a non-event as there are, of course, bills to pay. But what raised big and tall red flags were unknown salaries, allowances, and legal bills payable to Board Officers and members of FCT amounting to hundreds of thousands," MS. De Villa says. 

"It was the first time the members saw these expenses. Never was it disclosed in any of its past AGM (annual general meeting) sessions nor were they reported in any previously approved Financial Statements," she explains.

The payables included monies supposedly owed by FCT to CRA (presumably Canada Revenue Agency), a plumbing store, and four individual members and/or officers of FCT who were identified only by their first names and initials.

Documents obtained by this reporter early on identified the recipients of the money totaling $678,000. They are:

1. “Vicki” – $300,000. "Vicki" is Dr. Victoria Santiago, a dentist, and a former FCT official. 2. “RCJ” – $96,000. "RCJ" was Rosalinda Cerrudo-Javier (now deceased), former FCT president. 3. “Felino” – $122,000. "Felino" is Felino Javier, RCJ's husband, and a volunteer handyman. 4. “CRA” – $122,000. "CRA" is Canada Revenue Agency. 5. “Wendy” – $30,000. "Wendy" is FCT secretary Wendy Arena. 6. “S and J Mechanicals” – $8,000. It's not certain if this is the same plumbing, heating, and air conditioning company named S & J Mechanical.

"What is the truth?" Ms. De Villa poses questions. "Why were members not informed about the earnings of Members of the Board and individual members since the beginning? Why did the Board inform its membership of salaries and allowances only after the building got sold? Why not during the prior ten years?"

As in the past FCT officials have not been responsive to inquiries. My experience has been to wait endlessly for any official to answer simple questions. This brings me to say this latest demand by Ms. De Villa for transparency will go unheeded. (Video at: https://www.youtube.com/watch?v=hlXLIrR8l0U).

"Perhaps FCT is sheltered by the belief or hope that this payable issue will go away, or that their one-sided interpretation and explanations of events will prevail," Ms. De Villa muses. (Video at: https://www.youtube.com/watch?v=E5YUCP0xqlQ). (Copyright 2020. All Rights Reserved).