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Sunday, May 11, 2008

 

Villar raps govt decision to stop pre-departure loans to OFWs

By Efren L. Danao, Senior Reporter

Senate President Manuel Villar rapped the decision of the Overseas Workers Welfare Administration (OWWA) to suspend its pre-departure loans to overseas Filipino workers (OFWs), saying it has left them at the mercy of loan sharks and shattered the hopes of the poor from working abroad.

OWWA recently announced that it was suspending its pre-departure loans to OFWs after collecting only 30 percent of the P70 million in loans it had granted to OFWs.

Villar said that instead of blocking OFWs’ access to direly needed pre-departure loans, OWWA must instead consider improving its collection system first to make it more effective.

“Pre-departure assistance to OFWs is a very crucial component of our efforts to enable our workers to grab work opportunities abroad,” he stressed.

Villar, who has kept tabs of the conditions of OFWs in his visits abroad, noted that many OFWs encounter problems like nonpayment of wages, human trafficking and legal suits, making them incapable of paying their loans.

“An efficiently managed system of pre-departure loans should take these things into consideration,” he urged.

He noted the growing number of maltreated OFWs who have escaped from their employees and are awaiting repatriation. He is pushing for a P1-billion repatriation fund after noting the inadequacy of funds for the purpose. He himself sponsored the repatriation of at least 15 maltreated OFWs from the Middle East last month, rather than wait for the funds to be appropriated.

Labor secretary and concurrent OWWA chief Marianito Roque said that the agency had remained financially stable despite the 30-percent loss in collecting payments for pre-departure loans disbursed.

Roque reported that the current total assets of OWWA stood at P10.2 billion. Of this amount, P8.2 billion was placed in various investments, while the rest was being used for worker welfare assistance programs such as livelihood projects, scholarships, training and repatriation funds.

Villar said that if government can give assistance in training and scholarships to aspiring OFWs, then it should not also neglect pre-departure aid to those who are ready to work overseas.

   
 

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