Mandatory Pag-IBIG for OFWs a legalized ‘kotong’ — group

A migrants’ rights group on Monday assailed anew the mandatory membership of overseas Filipino workers (OFWs) to the government’s housing loan program, likening it to a legalized “kotong" (mulcting) targeting the sector considered as the country's modern day heroes. In a statement, Migrante International condemned as “unfair" and “unreasonable" the mandatory P600 fee paid by OFWs upon deployment for membership to the Home Development Mutual Fund (HDMF) or Pag-IBIG Fund. “Wala talagang natutuwa sa bawal na Pag-IBIG, lalo na ang ating mga OFW na lagi na lang nakokotongan ng gobyerno (No one is really happy with this, especially our OFWs who have always been a victim of mulcting by the government). This added burden is unfair and unreasonable, and we question its real intent," Migrante chairperson Garry Martinez said. The mandatory coverage, which took effect on August 1, was based on a memorandum circular issued by the Philippine Overseas Employment Administration (POEA), which orders the compulsory charging of the fee for OFWs upon registration and deployment. The P600 fee is also a requirement for the issuance of an Overseas Employment Certificate, which all land-based and sea-based OFWs are required to have. Martinez maintained that Republic Act 9679, or the HDMF Law of 2009, states that the Pag-IBIG Fund should come from “mandatory contribution support of the employers." The law’s implementing rules and regulations, however, state that while mandatory coverage shall be implemented for Filipino workers employed by foreign-based employees, business owners are not subjected to mandatory coverage. “These irregularities once again entail the virtual passing on of fees meant for employers to OFWs. Despite what is clearly stated in the law, the government unfortunately has no foolproof mechanism to ensure that employers would pay their share," Martinez said. Loans only for those who can pay? Martinez also scored the POEA for forcing the mandatory coverage when members are not assured of housing benefits, as only those who have the “ability to pay" will be granted housing loans. He also said OFWs are being forced to pay when they are not even ensured of the housing benefits. He cited Sec. 11 of the RA 9679 which states that only members who have the “ability to pay" will be granted housing loans. “How will the Fund’s Board of Trustees determine if OFWs have the ability to pay? Hindi naman pala lahat ng nagbabayad ay makakakamit ng pabahay. Paano kung isa kang OFW na mababa lang ang sahod, o di kaya’y contractual lang at hindi aabot ang paghuhulog sa required maturity period for loans? Nagbabayad ka lang pala para sa wala. Kotong lang talaga ito," Martinez said. (It turns out not everyone can avail of the housing program. What about OFWs who have low salaries, or are contractual employees whose total contributions will not reach the required maturity period for loans? You are practically paying for nothing. This is mulcting.) The P600 fee represents six months of contribution, according the POEA memorandum, and workers may choose to pay a higher amount. After six months, workers will likewise pay P100 monthly for continued coverage. Martinez said they would hold a picket at the POEA office this week, and seek a dialogue with Vice President and housing czar Jejomar Binay to oppose the mandatory coverage. Pro-Pag-IBIG fee As this developed, a labor group expressed support for the compulsory Pag-IBIG membership, saying it is the “best way" to ensure that OFWs become members of the housing loan program. “It is the role of POEA to promote the welfare of OFWs, and facilitating their registration as Pag-IBIG members is a way of doing that, as it gives them access to the Fund’s savings program," said former Senator Ernesto Herrera, the secretary-general of the Trade Union Congress of the Philippines (TUCP), in a statement. Herrera said OFWs should view the collection as “savings" and not as an “added burden." “Pag-IBIG contributions are not fees but savings. And these savings not only earn dividends, but also give the members access to short term loans and the most affordable housing loans in the country. This is an additional benefit for them, not an imposition," he said. As of June this year, the Pag-IBIG Fund has already released almost P20.7 billion worth of housing loans for over 32,000 units, and P17 billion worth of short term loans to more than 884,000 member-borrowers, the TUCP said. - KBK, GMANews.TV