SAN FERNANDO CITY, La Union: San Fernando City Mayor Pablo Ortega has ordered the closure of a shopping club for the lack of a proper business permit.
Melchor Galvez, of the City Permits and Licenses Office (CPLO), served the order to the Klikmart Shopping Club Corp. La Union branch on Wednesday.
Galvez identified Klikmart as one of the establishments mentioned by the Security and Exchange Commission (SEC) in an advisory dated July 31, that solicits investments from the public.
The closure was enforced after a validation was conducted by the SEC, a CPLO inspection, validation and recommendation for cancellation or revocation of license by the City Legal Office, which also said that Klikmart would be given an opportunity to answer the claims.
Klikmart reportedly applied as a general merchandising company and not as an investment firm with the CPLO last June 19.
Galvez said that SEC issued a warning saying that Klikmart, also known as Klikmart Rewards, was operating as an investment firm, wherein members are promised earnings from their investments of up to 33 percent interest within a maximum period of one month.
The public, through the SEC advisory, was told to stop investing money in the company because it did not secure the necessary permits.
Klikmart, the SEC said, was “formed only for the purpose of operating the business of marketing and distribution of goods, such as but not limited to soap and perfumes, wares, merchandise of every kind and description in wholesale and retail basis.”
Randy Villareal, Klikmart La Union branch manager, insisted that the firm complied with all the requirements of the city government.
“We are not an investment company, we are not illegal and our members will prove that this company (provides) benefits (to its members) including senior citizens,” Villareal said.
Lani Grace Balicha, a Klikmart member, said that for a minimum of P1,500 investment, the earnings of a member-investor is P500 while the maximum investment could reach up to P15,000 daily.
She added that the investor has the option to either withdraw the money or leave it until the investment earns an interest.
Balicha was one of the members who hurriedly rushed to the Klikmart office to ask if she can withdraw her investment.
She said that she invested an initial P3,000 and got P4, 000 which included an interest of P 1,000. She re-invested a bigger amount and was supposed to take her P9,000 until the closure order was implemented. She said she takes her reward every 21st day.
Villareal assured that the club members will get a refund as soon as their lawyer finishes the processing of documents.