MANILA, Philippines - The Department of Labor and Employment (DOLE) on Saturday justified the decision to suspend the loans program to Filipino workers departing for work abroad.
Speaking in behalf of Labor Secretary Marianito D. Roque, Labor acting chief Romeo Lagman said suspending the program is needed to review the system and come up with a better loan procedure to assist OFWs, and at the same time “continue, sustain and preserve the integrity of the OWWA Fund."
"This is consistent with earlier responses the OWWA had made, which had succeeded in recovering the previous investments and raised the OWWA Fund to a stronger level capable of responding to the needs and exigencies facing our OFWs," Lagman said in a statement.
In previous interview, Roque explained that OWWA has suspended the pre-departure loan program after it incurred losses of about P70 million extended to OFWs.
“I decided to suspend it kasi nga puro utang walang nagbabayad, so nalulugi kami (I decided to suspend it because nobody's paying and we're incurring losses)," Roque said.
Lagman in his statement Saturday defended Roque’s decision, which he said was intended to protect the OFW fund.
Lagman likewise said he emphasized full respect for the concerns raised by the legislative sector on the plight of OFWs, especially those lacking the personal finances needed for their departure for work overseas.
"Thankfully, many if not majority of the OFWs who depart for their employment overseas are able to fend for themselves as to their airfare and other needs on first departure and/or return to work overseas," Lagman noted.
Senate President Manny Villar on Thursday admonished the OWWA for suspending loan program and urged Roque to reactivate the scheme.
"With the suspension of the loan program the OWWA leave our OFWs at the mercy of loan sharks," Villar said. - GMANews.TV
2 comments:
I agree with Sen. Villar... this gov't seems to treat OFWs as heroes only when they remit dollars... but are not given the credit they deserve... more and more families of OFWs become deeper in debt because the government does not give more incentive... so they turn to loan sharks... the pre-departure loan extended by OWWA before eases the burden on the OFW because he knows that his family has some means until he can remit his salary... but since the gov't, OWWA in particular, decided to suspend it, OFWs have no where to turn to but the loan sharks...
i don't believe they incurred loses or no payment was received...
most likely the money went to the pockets of gov't employees (definitely the higher officials who have the access to the funds!)
Maybe (again, most probably) some of these officials are even members of the board of directors of these big financing institutions (loan sharks in disguise)...
REACTIVATE THE SCHEME NOW!
Perhaps some money went to the pockets of gov't officials. I can agree to that.
I think the bigger part of the losses is the OFW loan did not have enough controls to ensure that the principal will be paid (returned).
I wonder who know what controls were put in place to ensure repayment of the loan. How effective or in-effective were those controls?
Until OWWA establishes a solid plan to ensure a high re-payment rate on loans, I say suspend the loan scheme now! :-)
It's a sad conclusion to say that there is no other option but to loan from loan sharks. Rural banks, thrift banks or microfinance institutions can offer loans at reasonable rates.
Kapayapaan, mga kapatid :-) . Nasa kamay natin (hindi ng gobyerno) ang kakayahang makamit ang kalayaan sa kakapusan.
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