Sunday, May 11, 2008 Labor office reviews status of Owwa Fund
THE Department of Labor and Employment (Dole) is now reviewing the status of the pre-departure loans extended to overseas Filipino workers (OFWs) which the Overseas Workers Welfare Administration (Owwa) suspended after incurring P70 million losses.
Acting Labor Secretary Romeo C. Lagman said the measure is necessary for them to come up with a better system to assist the OFWs, and at the same time, continue, sustain, and preserve the integrity of the Owwa Fund.
“Indeed, 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,” explained Lagman.
Lagman emphasized full respect for the concerns raised by the legislative sector on the plight of OFWs specially 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.
“However, if the program is to effectively assist those unable to, an equal responsibility on their part will be emphasized in order for them to responsibly
pay up the balance, and this means encouraging their success as OFWs for the good of their loved ones back home,” he said.
Labor Secretary Marianito Roque in an earlier interview admitted that the reason they suspended the P40,000 being given to OFWs is because of the non-payments.
According to Roque the agency allocated P100 million for pre-departure loans program, however, when the agency lend the P70 million and no payments were made from the borrowers, he decided to stop the program.
Ang naipautang na namin is P70 million pero ang nagbayad lang is 30 percent, so how can we survive,” Roque lamented.
He added that Owwa also pursue the collections from the co-maker of the principal borrowers but instead of getting the repayment they even heard that the P40,000 is in exchange to the $25 membership fee being collected to the OFWs on a per contract basis.
“Ang sabi nila pera din naman daw yan ng OFWs kasi kinokolekta sa kanila yung $25 kaya bakit pa sila magbabayad,” added Roque.
“Historically sa Owwa yan ang problema ang sama ng payment rate,” the Labor chief said.
While Roque admitted that it is stipulated in the Migrants Workers Act of 1995 that government in particular Owwa should allocate pre-departure funding for OFWs, the mere fact that it failed to recover the investment it infuse for the program is enough basis to discontinue the project.
At the moment, Owwa, according to Roque is in the process of collecting and going after the borrowers to recover the P70 million capital they release for the pre-departure program.(MSN)
