Use P10-B OWWA funds judiciously - Sen. Villar
Senate President Manuel Villar Jr suggested Monday that the Overseas Workers Welfare Administration (OWWA) funds paid by overseas Filipino workers go through congressional scrutiny to ensure it is not squandered.
The trust fund is estimated to be running at P10 billion, accumulated from the $25 membership dues collected from each departing overseas contract worker and renewal of membership dues for contracts processed by the Philippine Overseas Employment Administration.
“We have to make sure that the fund for overseas workers really works for the improvement of the condition of our OFWs. A system where we can check its performance should be in place," Villar emphasized.
“At the very least it’s budget should pass congressional scrutiny similar to the case of energy bodies, such as the National Power Corporation, whose budget is submitted to Congress, even if the latter does not approve it," said Villar, who chaired the Senate finance committee in the previous Congress.
“This way we will have an idea and it becomes part of public record how much of every peso OWWA earns goes to direct services to OFWs and how much is overhead," he explained.
In the 2004 elections, there were allegations that the administration used OWWA funds in programs promoting certain candidates.
To avoid suspicions of fund misuse, the Senate president underscored the need to put systems in place to protect the OWWA funds from being used for political purposes.
Villar said the agency managing the fund, the Overseas Workers Welfare Administration, is classified as a government corporation with a budget outside congressional budget review.
“The President, for all her powers, has to go to Congress for money but OWWA with all membership contributions coming from OFWs is exempt. It can allocate and spend its own money without congressional authorization," he said.
Starting out as a “welfare and training fund for overseas workers" created by President Marcos in the late 1970s, OWWA has grown into an agency with audited total assets of P9.95 billion as of end 2006.
In 2005, it collected P1.258 billion from 994,191 about-to-be-deployed workers, on the promise that for a $25-fee, a member will receive up to P100,000 in disability benefits and P200,000 in accidental death benefits .
But that year, total payout in insurance benefits reached only P163 million, an amount dwarfed by OWWA’s payroll and operating expenses.
Villar said the argument for stricter “executive and legislative oversight" of OWWA is borne by audit observations made by the Commission on Audit for fiscal year 2006.
The Senate president earlier called for an audit of the OWWA and Philippine Overseas Employment Administration (POEA) funds in view of what he considered as "overcharging" on departing OFWs by using a conversion rate of P51 instead of the prevailing peso-dollar rate in the collection of the $25 membership fee.
OWWA's board of trustees heeded Villar's call on Dec 17, 2007 by coming out with a memorandum reducing the peso equivalent of the OWWA membership due to P1,050, using a peso-dollar rate of P42 from Dec. 18 to 31.
For January, the OWWA dues was further reduced to P1.043. 58, using the average peso-dollar rate of P41. 743 for December. For February, the peso equivalent will be based on the average exchange rate for January. - GMANews.TV
The trust fund is estimated to be running at P10 billion, accumulated from the $25 membership dues collected from each departing overseas contract worker and renewal of membership dues for contracts processed by the Philippine Overseas Employment Administration.
“We have to make sure that the fund for overseas workers really works for the improvement of the condition of our OFWs. A system where we can check its performance should be in place," Villar emphasized.
“At the very least it’s budget should pass congressional scrutiny similar to the case of energy bodies, such as the National Power Corporation, whose budget is submitted to Congress, even if the latter does not approve it," said Villar, who chaired the Senate finance committee in the previous Congress.
“This way we will have an idea and it becomes part of public record how much of every peso OWWA earns goes to direct services to OFWs and how much is overhead," he explained.
In the 2004 elections, there were allegations that the administration used OWWA funds in programs promoting certain candidates.
To avoid suspicions of fund misuse, the Senate president underscored the need to put systems in place to protect the OWWA funds from being used for political purposes.
Villar said the agency managing the fund, the Overseas Workers Welfare Administration, is classified as a government corporation with a budget outside congressional budget review.
“The President, for all her powers, has to go to Congress for money but OWWA with all membership contributions coming from OFWs is exempt. It can allocate and spend its own money without congressional authorization," he said.
Starting out as a “welfare and training fund for overseas workers" created by President Marcos in the late 1970s, OWWA has grown into an agency with audited total assets of P9.95 billion as of end 2006.
In 2005, it collected P1.258 billion from 994,191 about-to-be-deployed workers, on the promise that for a $25-fee, a member will receive up to P100,000 in disability benefits and P200,000 in accidental death benefits .
But that year, total payout in insurance benefits reached only P163 million, an amount dwarfed by OWWA’s payroll and operating expenses.
Villar said the argument for stricter “executive and legislative oversight" of OWWA is borne by audit observations made by the Commission on Audit for fiscal year 2006.
The Senate president earlier called for an audit of the OWWA and Philippine Overseas Employment Administration (POEA) funds in view of what he considered as "overcharging" on departing OFWs by using a conversion rate of P51 instead of the prevailing peso-dollar rate in the collection of the $25 membership fee.
OWWA's board of trustees heeded Villar's call on Dec 17, 2007 by coming out with a memorandum reducing the peso equivalent of the OWWA membership due to P1,050, using a peso-dollar rate of P42 from Dec. 18 to 31.
For January, the OWWA dues was further reduced to P1.043. 58, using the average peso-dollar rate of P41. 743 for December. For February, the peso equivalent will be based on the average exchange rate for January. - GMANews.TV
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