Over P1B bank loans for the Iglesia ni Cristo’s Philippine Arena? -Rappler

MILLIONS IN LOANS? Documents show that key INC officials were signatories in loan agreements to fund the Ciudad de Victoria project, which includes the Philippine arena.

The late INC executive minister Eraño Manalo once said, 'Ang Iglesia ni Cristo ay walang utang kahit na saang bangko. Ang Iglesia ni Cristo ay hindi nagsasanla ng mga titulo ng lupa para lamang makakuha ng pondo.'

By Katerina Francisco for RAPPLER

Published 12:59 PM, July 27, 2016 
(INC 102 Founding Anniversary)

MANILA, Philippines – It was touted as a world-class structure fit to showcase the growing clout of homegrown Philippine church Iglesia ni Cristo (INC). On Wednesday, July 27, the influential church celebrates its 102nd year.

Two years ago in 2014, the Iglesia opened the Philippine Arena, the world’s largest indoor theater, to widespread attention: an P8.7-billion ($200 million) megastructure that served as the centerpiece of the sprawling 75-hectare Ciudad de Victoria complex in Bulacan.

Conceived, designed, and envisioned as a world-class stage for local and international events, the arena has played host to several events: from the INC’s centennial celebrations, to a concert by local celebrity tandem AlDub, and a performance by American pop superstar Katy Perry.

An expert on sociology of religion, Jayeel Cornelio said of the Iglesia ni Cristo in a previous interview that the Philippine Arena "is an establishment, is a marker, of what they (INC) are right now in the 21st century. They're not a religion in the Philippines. They're a religion in the world.”

Funds for the arena, the INC said, came from the donations of its members, a practice that aligns with the teachings of the church’s second executive minister, the late Eraño “Ka Erdy” Manalo.

In some of his messages to INC members, Ka Erdy had emphasized that the INC should spend within its means, and denounced the idea of the church incurring debts to fund its projects.

Documents obtained by Rappler, however, showed that INC officials had engaged in agreements with two banks, to obtain a P1.137 billion loan to partially fund the construction of Phase 1 of the Ciudad de Victoria project.

According to recitals in the loan documents, Phase 1 of the project includes the construction of a “multi-purpose indoor arena, and certain commercial and retail buildings and structures.”

But several amendments to the agreements showed that INC leaders had asked for additional amounts of up to P3 billion to repay the existing loan.

To secure these loan agreements, at least 61 INC-owned properties – ranging from church sites to residential and agricultural areas in Metro Manila, Nueva Ecija, Rizal, Cavite, and Baguio – were put up as mortgaged collateral.

In addition to this, 317 condominium units in Quezon City, with a total market value of more than P1 billion, were also included as collateral.

Up to P3 billion requested

Based on the documents, the INC was one of the parties in loan agreements entered into by the Maligaya Development Corporation (MDC) with two banks: the Metropolitan Bank & Trust Company (MBTC) and the Asia United Bank Corporation (AUB).

MDC, the borrower, was represented by Glicerio Santos IV, while the INC was represented by the church’s auditor, Glicerio Santos Jr. (READ: Part 1: Who is Glicerio Santos Jr in the Iglesia ni Cristo?)

Santos Jr was also the signatory for the Felix Y. Manalo Foundation (FMF) and the New Era University (NEU).

According to the memorandum of agreement among MDC, NEU, and INC, the church agreed to turnover the completion of Phase 1 of the Ciudad de Victoria project to NEU, with the participation of MDC.

NEU and MDC were to take part in the “financing, construction and development” of the project.

To finance this, MDC acted as borrower in a March 2014 omnibus loan and security agreement with lender MBTC. The latter agreed to provide P1,137,500,000 to partially fund the construction and development of Phase 1 of the project.

But in July 2014, MDC requested for P750 million from MBTC to repay its existing loan.

A month after that, MDC and MBTC entered into a second amendment to the omnibus agreement. MDC sought up to P3 billion to repay its existing loan, putting the total principal amount to up to P4,887,500,000.

Mortgaged collateral

To secure the loan, MDC and the third party mortgagors (those who mortgage their property) – INC and FMF – provided additional mortgaged collateral, covering 61 INC-owned properties. These properties ranged from church sites to agricultural properties to residential ones, located in various areas in Metro Manila, Nueva Ecija, Cavite, and Baguio.

In addition to this, 317 units owned by the INC in LIG Condominium in Quezon City were included as additional mortgaged collateral. According to the appraisal report, the units have a total market value of P1,000,317,000.

The condominium certificates of title for several units in LIG stated that the units were mortgaged to guarantee the P3-billion loan from MBTC.

These were also the same set of properties mortgaged for a P2 billion loan – this time from AUB.

In March 2014, MDC also entered into an agreement with AUB for a similar purpose: to request P1.137 billion to partially fund the construction of the Ciudad de Victoria phase 1 project.

A subsequent amendment to the agreement had MDC requesting for an additional P750 million to repay its existing loan with AUB. A second amendment asked for an additional amount of up to P2 billion, putting the total principal amount to up to P3,887,500,000.

In its agreements with AUB, the Metropolitan Bank & Trust Company-Trust Banking Group acted as collateral agent, with the INC, FMF, and other registered owners of the mortgaged collateral as third party mortgagors.

Separate mortgage supplements with AUB and with MBTC also identified two agricultural properties in Barangay Maligaya, San Miguel, Bulacan as part of mortgaged collateral.

Both properties listed several INC ministers as owners. In one of them, the names of Benefrido C. Santiago, Bienvenido C. Santiago, Glicerio B. Santos Jr, Arnel A. Tumanan, and Lowell C. Menorca were mentioned.

Lowell C. Menorca is the father of former INC evangelical worker Lowell Menorca II, who fled the Philippines with his family citing alleged harassment from the church leadership.

In an email to Rappler, the younger Menorca said that he only learned about the Bulacan property fairly recently. He also said that his father had acted as a “custodian” of the property.

“As far as I know, it was under internal arrangement within the Church Administration and the INC Legal Department because he never claimed it to be his nor profited from it, he was probably just a custodian of the property as a trustee of the Executive Minister,” he said.

Menorca added that it was “common practice” for Sanggunian ministers to be named as owners of church properties, because they were among those trusted by the executive minister.

Letter from EVM

While the loan agreements made it clear that it was the two Santoses who were signatories, the loans were made with the knowledge of the current executive minister, Eduardo Manalo.

In a notarized resolution dated February 10, 2014, Manalo acknowledged that the INC had entered into a memorandum of agreement with NEU and MDC for the Ciudad de Victoria project, and that the INC and NEU have agreed to “give the required collateral securities to secure such financing from the Project lenders.”

Corporate Resolution No. 02-2014 further stated that MDC has proposed to secure “one or more loan and credit facilities” from banks to obtain the aggregate principal amount of up to P3.5 billion to partially finance the project.

It added that the INC has agreed to provide the required collateral securities and letters of support for MDC after having “independently satisfied itself that it will derive direct and indirect economic benefit from the arrangements contemplated in the agreements for the Loan Facilities and that the execution by it of said agreements will result in corporate benefits to it.”

This resolution from Manalo showed that he was aware of, and approved entering into the loan agreements, even as his late father had denounced the idea of the church incurring any debts.

In one of his speeches, Ka Erdy declared that the church has never started on a project without first ensuring that it had enough funds.

“Pagka mayroong ipagagawa ang Iglesia, tinitingnan muna namin ang kabang yaman, tinatanong ko muna ang may hawak ng pananalapi, kaya ba ng Iglesia? Nung ipagawa ang templo, wala kayong narinig, wala kaming isinerkular, ‘Mga kapatid, umabuloy kayo para doon sa ginagawang templo,’ hindi po,” he said.

(Whenever the Iglesia was planning to have something built, we first look at our treasury, we ask if the Iglesia can afford it. When we had the temple constructed, you did not hear anything from us, we did not issue circulars asking you to donate for the temple.)

“Hindi kami humingi ng karagdagan sapagka't hindi namin sinimulan ang bagay na ‘yun na hindi sapat ang pananalapi ng Iglesia…Hindi namin kayo ginambala, at lalo naming hindi isinanla ang mga propriedad, mga lupa ng Iglesia,” he added.

(We did not ask for additional contributions, because we do not start any project if the Iglesia does not have sufficient funds for it…We did not bother you, and we did not mortgage the properties and lands of the Iglesia.)

In another message, he said, "Ang Iglesia ni Cristo ay walang utang kahit na saang bangko. Ang Iglesia ni Cristo ay hindi nagsasanla ng mga titulo ng lupa para lamang makakuha ng pondo."

(The Iglesia ni Cristo has no debts to any bank. The Iglesia ni Cristo does not mortgage land titles just to obtain funds.)

Squandered church properties?

While it is normal for corporations to secure bank loans for various uses, the issue for several INC members lies in the fact that the church had once proudly declared that it owed no bank any debts.

No less than Ka Erdy, once the church's highest official, had warned against it, saying in one of his messages that the moment someone incurs debt, "buwisit na ang kanyang buhay."

One Iglesia member said that the INC's involvement in these loan agreements is a big deal for members because it runs counter to Ka Erdy's teachings for the church not to spend beyond its means.

"In the past administration, it was a rule that the church does not borrow money...For the members, they're not used to the fact that the Iglesia has debts. So when this came out, we were shocked," she said.

She added that whispers of the controversy had even started to affect members' donations, with ministers taking to the podium week after week to encourage members to give more offerings.

In the past, she said, one would not even hear the clink of coins in the collection basket, because members were putting in paper bills. But it's not the case these days.

"We're concerned about the church's funds. Utos sa amin ang pagbibigay, pag-aabuloy. Pero papaano kami tutupad sa utos kung nilulustay ang pera? (We are commanded to give offerings to the church. But how we can we follow this if the money is being wasted?)"

Although the INC is not the direct borrower in the loan agreements, she pointed out that some of the church's highest officials are still involved.

Another Iglesia member also said that there seems to be more pressure on members to help with the church's expenses.

"Now we're being asked to chip in, that's very unusual. And when you connect the dots, it seems that perhaps we do have debts. A church is supposed to be non-profit, but you see the Philippine Arena that's not raking in profits. How do you sustain it?"

While it is not clear if the MDC had received and made full use of the billions it requested from the banks, the documents showed that church leaders requested at least P1.137 billion to partially finance the construction of the Philippine Arena and other related development included in Phase 1 of the Ciudad de Victoria project.

The arena, constructed at a staggering cost of P8.7 billion, was envisioned to be a prime venue for concerts, sports events, and conferences. It even has 8 private rooms, offering VIP guests with special viewing decks and plush theater seats. (FAST FACTS: Iglesia ni Cristo's Philippine Arena)

So far, the arena – located north of the Philippines’ capital region – has hosted only a handful of big-ticket events. Based on its website, its latest event was the Maligaya Summer Blast, held last May.

The arena has also been used for some of the church’s evangelical missions and activities.

An INC insider also said that some of the mortgaged property were housing for church ministers, but added that these ministers have no choice but to stay silent about their concerns, for fear that they might be kicked out of their residential units.

Rappler has repeatedly sought comment from the INC, but has yet to receive a reply as of posting.

For his part, Menorca criticized how the church’s properties were “squandered” under the current leadership.

“It is so saddening that after all these years, all the properties and monumental successes of the Church under the previous Executive Minister, were shamefully squandered away after decades of careful and meticulous stewardship,” he said.

He added, “We continue to hope and pray that the whole truth will be revealed, not to further humiliate the church but to finally expose the wrongdoings inside the church administration in order to put a stop to it and hopefully restore the church to its pristine condition.” – Rappler.com

Ex-INC minister's house help: Leaders force my family to lie -Rappler

Kung ang KASINUNGALINGAN ang sinasaligan ng pamunuan ng Iglesia Ni Cristo®, marapat lamang na hindi karapat-dapat na na ikabit ang pangalan ni CRISTO na Panginoon at Diyos sa kanyang pangalan sapagkat sila ay mga alagad ng KASAMAAN at KADILIMAN! Naghahari na ngayon si Satasa sa INC™ in Manalo! Panalangin sana namin na lisanin na ito bago pa man kayo mapahamak sa kasamaan nito.

Halina't bumalik na kayo sa tunay na Iglesia ni Cristo-- ang IGLESIA KATOLIKA!

Ex-INC minister's house help: Leaders force my family to lie

(2nd UPDATE [Source: Rappler]) 'Napakasakit po. Nagagalit ako sa mga Sanggunian,' says Abegail Yanson, house help of ex-INC minister Lowell Menorca, in a video obtained by Rappler

MANILA, Philippines (2nd UPDATE) – Abegail Yanson, the house help of former Iglesia ni Cristo (INC) minister Lowell Menorca, insisted she was not abducted by her boss as she denied the claims of her own parents.

In a video obtained by Rappler, a tearful Yanson belied claims that Menorca abducted her. She added that the INC’s Sanggunian (Council), or top leadership, is forcing her family to lie.

“Walang katotohanan na hindi ako pinapayagang umuwi,” Yanson said in the video provided by incdefenders.org. (It’s not true that I'm not allowed to go home)

Reacting to the video, INC spokesman Brother Edwil Zabala said in a text message to Rappler: "As stated earlier, we are confident that the truth shall prevail in this current controversy and that our officials will be vindicated by our judicial system. We continue to pray for all those affected by, and involved in, these cases."

Zabala added: “Mahirap na pag-usapan ito sa media dahil ang mga taong nasasangkot lalo na ay nakapagbigay na ng kanilang mga judicial affidavits sa Court of Appeals. Ang mga bagay pong ito ay sub judice na. Ang sinuman na mangangahas na gumamit ng anumang mga pahayag na kasalukuyang dinidinig ay maaaring ma-contempt."

(It is difficult to talk about this in media because the persons involved, most especially, have submitted their judicial affidavits to the Court of Appeals. These cases are now sub judice. Whoever dares to use any statement that is being heard, can be cited in contempt.)

Menorca faces a serious illegal detention complaint for supposedly prohibiting Yanson from seeing her family since being brought to Manila from Bulan, Sorsogon, last July. (READ: INC minister Lowell Menorca: The story of my kidnapping)

But Yanson said it was her own decision to stay. “Sinasabihan na po ako ni Ka Jinky [Menorca, wife of Lowell Menorca]: 'Ano Abby, uuwi ka na ba?' Pero hindi ko po kayang iwan si Ka Jinky dahil nararamdaman ko po, may mangyayaring hindi maganda sa akin o sa kay Ka Jinky kaya hindi ko po sinunod na uuwi ako. Nanatili ako sa kanila,” she said.

(Ka Jinky told me: 'Abby, are you going home?' But I couldn’t leave Ka Jinky behind because I already felt that something bad was going to happen to me or to Ka Jinky. That’s why I didn’t go home. I chose to stay with them.)

'Takot silang matiwalag'

Yanson said her family, including her parents who filed the case against Menorca, are being used by the Sanggunian. “Sana palayain na po silang… hayaan 'nyo po silang pasalitain na wala pong bantay… Masakit po para sa akin na makita ko 'yung mga magulang ko sa TV na puro kasinungalingan ang sinasabi laban sa mag-asawa,” she said.

(Let them go. Let them speak without someone guarding them. It’s painful for me to see my parents on TV spewing lies against the Menorcas.)

Yanson added: “Napakasakit po. Nagagalit ako sa mga Sanggunian. Sobrang nagagalit po ako kasi magulang ko na po 'yung hawak, kapatid ko… tapos po kung anu-ano po ang salitang pinagsasabi nila na alam nilang hindi totoo. Kaya po nila sinasabi 'yun dahil tinatakot sila. Tinatakot silang matiwalag.”

(It pains me. I am angry at the Sanggunian. I am very angry because they’re controlling my parents, my sibling… and they force them to tell these lies under threat. They’re threatening to kick them out of INC.)

“Tiwalag” is a term that refers to those expelled from the INC.

Yanson ended her video with a message to her parents and the INC's leadership.

"Ma, Pa… alam 'nyo namang hindi magagawa sa akin 'yan ng mag-asawa. Na kidnapin ako, i-detain ako, pilitin nila akong isama. Napakabait nila sa atin, sa mga kapatid, sa akin… alam 'nyo na alam ko na hindi nila kayang gawin 'yan sa akin. 'Wag kayong magpagamit, sabihin 'nyo ang totoo. Nananawagan ako sa INC, sa Sanggunian. Hayaan 'nyo po ang magulang at kapatid ko, hayaan 'nyo na silang magsalita ng katotohanan. Huwag 'nyo po sanang pilitin pa sila sa mga kasinungalingan lalo na’t hindi totoo dahil ako po mismo ang kusang sumama kay Ka Jinky, sa mag-asawa."

(Ma, Pa, you know that the Menorca couple would never do that to me – kidnap me, detain me, force me to go with them. They've been so kind to us, to our brethren, to me. You know that I know they would never harm me. Don't allow yourselves to be used, tell the truth. I call on the INC, the Sanggunian, to let my parents and sibling be. Let them speak the truth. Don't force them to lie because I chose to stay with Ka Jinky out of my own will.)

Detained minister

Menorca is among the former INC officials who were supposedly ordered detained by the local church’s top brass, over a scandal that has rocked the influential religious group. His detention was allegedly because of his criticisms of the INC’s leadership, which is being accused of pocketing the group’s funds for their own benefit.

The Menorca family – Lowell, Jinky, and other members of their household – were rescued late October after months of supposedly being held against their will inside the INC compound in Quezon City.

The Supreme Court later on issued writs of habeas corpus and amparo for Menorca, his wife, Yanson, and Yurie Keiko Otsuka.

Menorca's lawyer, Trixie Cruz Angeles, previously told the Court of Appeals that a woman, supposedly from the police's Criminal Investigation and Detection Group, had tried to force Yanson to come with her during the hour-long recess in the proceedings. Angeles said this was proof that her clients need the protection offered by a writ of amparo.

The INC's lawyer belied those claims, saying the commotion was only because Yanson's mother was stopped from approaching her daughter. Yanson herself said she did not know the woman who approached her.

The serious illegal detention case against Menorca was filed the day after Menorca faced the CA for the first hearing on the former minister's petition for writs of habeas corpus and amparo. – Rappler.com

RAPPLER - Part 2: Glicerio Santos Jr's clout and control in the INC

[EXCLUSIVE] With only a few exceptions, the personalities behind the US branches of the FYM foundation are basically the same: Glicerio Jr, Glicerio III, and Glicerio IV

Aries Rufo

Published 5:14 PM, July 31, 2015

Updated 5:51 PM, Aug 01, 2015

READ: Part 1: Who is Glicerio Santos Jr in the Iglesia ni Cristo?

Rappler: MANILA, Philippines – Unlike the Catholic Church whose assets are administered by autonomous dioceses, the Iglesia ni Cristo (INC) appears to be monolithic, allowing a single person or group of persons to be entrenched in as many INC organizations, foundations or businesses as possible.

In the case of the INC, the footprints of the family of INC auditor and minister Glicerio Santos Jr, appear to be all over the local corporations and foundations of the sect.

In the Catholic Church, which is registered as a "corporation sole," the bishop is a mere temporary caretaker of assets, with the administration of temporal or ecclesiastical assets put under the name of the diocese. This ensures the efficient transfer and administration of Church assets whenever there is a change in leadership.

And because each archdiocese or diocese is autonomous, bishops are not supposed to meddle in the affairs of other dioceses, especially where financial matters are involved. Every diocese has a finance council that makes sure Church funds are being properly used. Despite the checks, the set-up is still imperfect and reports of misused funds still filter through.

Over at the INC where no similar mechanisms are in place, some disgruntled followers are up in arms over the control that one of their ministers, Glicerio Santos Jr, is exercising over church finances.

Santos has been accused of driving a wedge between INC executive minister Eduardo Manalo and his family. Eduardo Manalo’s mother Cristina or "Tenny" and brother Angel appeared on a YouTube video saying their lives were in danger. After they were expelled from the Iglesia, Angel later appealed to his elder brother to talk to them, to no avail.

Clout

Santos’ growing clout and control over the INC’s finances may be one of the reasons why he’s been tagged as the number 2 man in the INC.

His involvement goes beyond the Iglesia's local foundations and corporations, as he also holds executive positions in the different Felix Y Manalo foundations (FYM) scattered in the United States. He is also behind FYM-New Zealand and FYM-Canada.

Here’s what we found from mining corporate documents of the different FYM foundations in the US.

FLORIDA	HAWAII
Glicerio Santos Jr, president/chairman Glicerio Santos IV, director Dorothy Kristine Orosa, vice chairman/vice president Restituto Lazaro, director/secretary Manuel Andaya, director	Glicerio Santos Jr, president/director Dorothy Kristine Orosa, vice president Restituto Lazaro, secretary Manuel Andaya, director
IOWA	MASSACHUSETTS
Glicerio Santos Jr, president/director Restituto Lazaro, secretary	Glicerio Santos Jr, president/director Dorothy Kristine Orosa, vice president Manuel Andaya, director
NEVADA	WASHINGTON
Glicerio Santos Jr, president/director Manuel Andaya, director Restituto Lazaro, secretary Dorothy Kristine Orosa, director Manuel Santos, treasurer	Glicerio Santos Jr, president Glicerio Santos IV, director Manuel Andaya, director Restituto Lazaro, secretary Dorothy Kristine Orosa, vice-president

(Note: The orange dots refer to the states listed in the table above, while the yellow dots refer to states that do not identify FYM foundation officers. The Secretary of State websites of California, New York, North Carolina, and South Carolina disclose online that a FYM Foundation branch exists in their state, but do not indicate who the officers are.)

Among countries outside the US with an FYM Foundation branch, at least New Zealand and Canada disclosed online who their directors are.

With only a few exceptions, the personalities behind the FYM US branches are basically the same. Just like in the Philippine INC entities, the Santoses – Glicerio Jr, Glicerio III, and Glicerio IV – are also in most of the foreign-based foundations. One significant name found in the foreign-based Iglesia foundations is Dorothy Kristine Manalo Orosa, a lawyer and the eldest daughter of Eduardo Manalo.

Joy Yuson, a former coordinator of the INC media arm, accused the elder Santos of withdrawing funds from various bank accounts and channeling these to the foundations they control.

In a video posted on the Facebook account of user Sher Lock, Isaias Samson Jr, the former editor-in-chief of INC's official publication Pasugo, insisted that Santos was involved in corrupt practices in the church, and that INC spokeperson Edwil Zabala, general evangelist Bienvenido Santiago, and other ministers knew about it.

The Powerful Glicerio Santos Jr. of the Iglesia Ni Cristo®, who is he?

Part 1: Who is Glicerio Santos Jr in the Iglesia ni Cristo?

[EXCLUSIVE] The elder Eraño Manalo had advised his son Eduardo, now executive minister, to always listen to the good counsel of Santos, also known as 'Kidlat', because he was 'quick to act'

Aries C. Rufo and Reynaldo Santos Jr

Published 8:02 AM, July 30, 2015

Updated 9:27 AM, Jul 30, 2015

Rappler, MANILA, Philippines – Who is Glicerio Santos Jr and what is his role in the current feud that’s wracking the Iglesia ni Cristo (INC)? Why has his name been dragged into the controversy?

Those sympathetic to the side of INC expelled minister Felix Nathaniel "Angel" Manalo and his mother Cristina "Tenny" alleged it was Santos who alienated INC executive minister Eduardo Manalo from his family.

This was supposedly part of a power play and struggle that saw several old INC officials being kicked out after the death of the former executive minister, Eraño "Ka Erdy" Manalo.

The elder Manalo was known for his austere lifestyle, resisting calls from concerned Iglesia members for him to seek medication when he got ill. INC insiders told Rappler "Ka Erdy" believed that money collected from members should not be spent by him. "Pera ng Diyos (money of God)," as he called it, was not meant for him.

Not long after Eraño’s death, the Iglesia's Sanggunian or Council under the new executive minister Eduardo underwent a purge. Eraño’s other son Angel and his wife Tenny could not do anything about it because Eduardo had already assumed the post of executive minister. The mother had not spoken with the son since then.

Only one of the 12 members survived the Sanggunian shake-up: Glicerio Santos Jr.

Entrusted

“Pinakabilin-bilinan siya ni Ka Erdy (Eraño) kay Ka Eduardo,” said one INC member. (Ka Erdy entrusted him to Ka Eduardo.)

The elder Eraño had advised his son Eduardo to always listen to the good counsel of Santos, who was also known as "Kidlat" because he was “quick to act” and was able to deliver on difficult tasks assigned to him. “If there’s an impossible task, give it to Santos,” the INC member who has contacts with church higher-ups said.

Santos was appointed treasurer and general auditor of the church’s finances. He held considerable power, but to members, he was simply known to be in charge of “pananalapi” or church funds.

Also described as a "bean counter and bureaucrat" by others who knew him, Santos, now about 76 years old, showed a willingness to "adapt to the new leadership," another INC insider said.

He eventually became more entrenched as his own son, lawyer Glicerio Santos IV, became legal counsel of the Iglesia.

Referring to the elder Santos, the other INC member said, "Everyone knows he's the number 2 guy. He is the second most powerful man in the INC." If he isn’t the second most, he is certainly among the most powerful in the governing Council or Sanggunian.

Iglesia members who want to set their church back on the right path said it was Santos who was behind the recent big-ticket projects of the Iglesia (including the grand $200-million Philippine Arena), the purchases of properties both here and abroad, including the abandoned town in South Dakota which was reportedly purchased for $700,000.

His clout extends beyond the INC. Santos wields enough influence that he was reportedly able to intercede for Ja Hoon Ku, a Korean wanted in his country for allegedly embezzling over $200 million from his company. Ja, who was a contractor for the Philippine Arena, had become an Iglesia convert.

The Korean was detained by the Bureau of Immigration (BI) in January 2014 after the Korean embassy sought his arrest and deportation. But he was granted temporary liberty when Malacañang, through Executive Secretary Paquito Ochoa, issued an order on March 19 of the same year allowing Ja's provisional liberty – he would be free until August 31, 2014 or until his appeal was resolved..

A report by ABS-CBN said that the BI placed Ja under the custody of Santos as part of Ochoa's order. In the same order, ABS-CBN said that "Glicerio B Santos Jr, General Auditor of the INC, should be required to execute an Affidavit of Undertaking specifying that he will absolutely be responsible for Respondent's custody."

Family enterprise

For this story, we sought to interview INC spokesperson Edwil Zabala but he could not be reached. But in an earlier interview with Rappler, Zabala said Iglesia may hale to court anyone who makes false accusations against the church.

"Sa tamang lugar, sa tamang paraan, ang Iglesia haharap, sasagot kapagka mayroong ipineprisintang pruweba," he said. (The Church will face the allegations at the proper time and if there is evidence being presented.)

The INC chief has reposed his full trust and confidence in Santos bordering on blind faith such that, he may know more about the finances of the INC than the executive minister himself.

If the Manalos are considered by many as the spiritual heads of the INC, Santos and his family – based on official documents – appear to be controlling vital operations of the church.

Consider the following:

Notes about the entities mentioned above:

• Maligaya Development Corporation is the management arm of the Philippine Arena

• Felix Y. Manalo Foundation Inc (FYM Foundation) was founded on February 4, 2011, while the Subic Bay-Felix Y. Manalo Foundation Inc was established on May 7, 2012

• The F.Y. Manalo Medical Foundation operates the New Era General Hospital

• Unified Livelihood and Advocacy for Development International Inc (Unlad International) is a Quezon City-based NGO that undertakes livelihood projects. It was incorporated on April 25, 2013.

• The Eraño Manalo Medical Center Inc will be behind the 11-story modern hospital that will be constructed in Ciudad de Victoria in Bulacan

Santos III and Santos IV are sons of Santos Jr, while Anita Santos is his wife.

With 3 already locked votes, they can easliy control decisions on how to run the businesses and non-profit NGOs of the INC. We have verified at least 8 entities where members of the Santos family have a presence.

Latest 2013 financial statements submitted to the SEC showed that the FYM Foundation declared P128,273,658 in fund balances, while its sister company, the Subic Bay-FYM Foundation reported P1,011,763 for the same period.

FYM Medical Foundation declared P20,956,809 in fund balances in 2013, while Unlad International registered a fund balance of P26,213,599. Based on a video posted on the INC's official website, Unlad International has set up training centers on garment manufacturing and eco-farming for INC members, and indigenous communities in various parts of the country.

Maligaya Development Corporation posted a net income of P1,482,599 for 2013. New Era last submitted a financial statement in 2008, when it declared a fund balance of P172,786,318.

But the listings indicate the involvement of the Santoses only in local corporations and foundations. There are more. – with Chay F. Hofileña/Rappler.com

To be concluded

Major Differences between the True Church of Christ and the Fake Iglesia ni Cristo founded by Felix Manalo

Below quote was taken from RAPPLER.com entitled "The Major Difference between the Catholic Church and the Iglesia ni Cristo" Item No. 6:

Apostate Church. The INC accuses the Catholic Church of “unfaithfulness” or apostasy. Citing the prophesy of Apostle Paul, the early Church strayed away from the teachings of Christ. They cite the words of St Paul, who said that after his death, “men will arise who will speak perverse things to draw away the disciples of Christ after them (Acts 20:30)." The INC also cites St Peter, who said that false prophets will preach heresies “denying the Master, the Lord Jesus Christ, by rejecting him as Head of the Church…and by rejecting His name.”

The INC believes the descriptions squarely fit the Catholic Church. “The Catholic Church denied the Lord Christ’s headship by putting Peter and the Popes in His stead. It rejected His name, Christ, by sporting such an unscriptural name as Roman Catholic Church.”

The Catholic Church however, counters that it “has been faithful at all times to the Revelation” amid erroneous teachings and persecutions. The martyrdom of early Christians in the first 3 centuries is proof of the fidelity of the Catholic Church to Christ’s teachings.

In the first place, if the Catholic Church committed apostasy, “why does the INC use the Holy Bible that was ratified by the same Church in the 4th century?”