SUBIC BAY FREEPORT: Tailin Abrasives (Subic) Corp., a manufacturing company inside the Taiwanese Industrial Park here, is allegedly engaging in the lending business, allowing its employees to borrow money with questionable interest rates and the payment in installments automatically deducted from their salaries.
A current worker and a former employee, who both requested not to be named, said the two top officials of Tailin – company president Kiko Wu and its vice president Eddie Lu – are financing the lending business, charging a minimum three percent monthly interest on loans ranging from P5,000 to P50,000.
Tailin has about 500 employees with 400 on regular status.
“Since I started working here in 2008, this has been a practice and making things difficult for us,” the 40-year-old worker of Olongapo City in Zambales said.
The worker, who is receiving minimum wage rate, told The Manila Times in an exclusive interview that because of these company loans, there were instances when what was left of his take-home pay is only less than P1,000.
He showed The Mania Times his pay slips for the last 12 months where the deductions are itemized.
On the pay slips, Company Loan 1 and Company Loan 2 are the highest deductions, range from P1,400 to P2,600.
A former Tailin employee, who resigned after 14 years of service, confirmed the company’s practice of lending money.
He said he does not have any problem with the company engaging in the lending business but at times when a borrower is unable to pay the loan, the co-maker is forced to pay.
The current worker and the former employee said almost all employees avail of the loans offered by the company.
Tailin Administrative Manager Ligaya Romanban told The Manila Times that the loans are cash advances of the employees.
Both Wu and Lu did not reply when contacted through their mobile phones as of this writing.
Meanwhile, Subic Bay Metropolitan AuthorityAdministrator Wilma Eisma has also not replied to a text message by The Manila Times if lending money by locators is allowed.
A lawyer said Tailin could be violating Philippine laws by engaging in the lending business as Rule 10 a of the Implementing Rules and Regulations (IRR) of Republic Act 9474 or “The Lending Company Regulation Act of 2007” states, “Any person who shall engage in the business of a lending company without a validly subsisting authority to operate from the Securities and Exchange Commission shall be imposed a fine of not less than P10,000 and not more than P50,000 or imprisonment of not less than six months but not more than 10 years , or both at the discretion of the court.”
The law also states that the president, treasurer and other officers of a corporation, including the managing officer thereof, who shall knowingly and willingly engage in the business of a lending company shall be subject to penalty.
Tailin has been operating in Subic manufacturing grinding wheels for export since 1998.