GIVEN the ubiquity of investment scams, local government units (LGUs) are encouraged to evaluate applicants before issuing business permits.
In its out-of-town regular session held at the Bantayan Municipal Hall Monday, Sept. 30, 2019, the Provincial Board (PB) passed a resolution urging all LGUs to intensify their monitoring and surveillance of businesses in their area.
The measure was filed by PB Member Glenn Anthony Soco, who heads the committee on commerce and industry.
The resolution was among the legislative measures the 15th PB approved during its first out-of-town session.
Soco, who is also a businessman, said Cebuanos without a “sound grasp” of basic financial education and concepts are more vulnerable to deceit and fraud.
“The proliferation of (fraudulent) investment schemes (such as) Ponzi etc., in Cebu has reached an alarming state, considering that these illicit entities have victimized a myriad of Cebuanos and have penetrated even the farthest municipalities in the province,” the resolution read.
Soco said cities, towns and barangays should actively participate in the eradication and prevention of these illegal investment activities.
This can be done, Soco said, through monitoring, frequent assessment and reinvestigation and reevaluations on whether a business is operating in accordance with its primary purpose upon registration.
Aside from this, LGUs are advised to regularly check with the Securities and Exchange Commission (SEC) for updates on investment scams and how to detect possible fraudulent business activities.
“A prior assessment of the true nature and purpose of a business entity seeking registration in a certain community is one effective tool to prevent the entry of illegal businesses appearing as duly registered entities,” Soco said. (RTF)