House approves bill establishing OFWs credit assistance program The House of Representatives has approved on third and final reading a measure establishing a credit assistance program for overseas Filipino workers (OFWs). [Hon. Walden F. Bello] Rep. Walden F. Bello (Party List, Akbayan), Chairman of the House Committee on Overseas Workers Affairs, said House Bill 4985, to be known as Overseas Workers Credit Assistance Act, would provide credit assistance to OFWs even before they leave the country. The authors of the measure are Reps. Susan A. Yap (2nd District, Tarlac), Neptali M. Gonzales II (Lone District, Mandaluyong City), Juan Johnny R. Revilla (Party List, OFW) and Joseph Gilbert F. Violago (2nd District, Nueva Ecija). An OFW can avail of a loan of not more than P50,000 from the Overseas Workers Welfare Administration (OWWA) to defray the living expenses of his or her family during the first months of absence or to pay for recruitment expenses including placement fees, documentation costs and plane tickets, Bello said. Yap said a next-of-kin of the overseas worker-borrower should participate as co-borrower in the loan entered by the OFW and OWWA. [Hon. Susan A. Yap] The loan shall be covered with a loan redemption insurance from any private insurance provider duly registered with an accredited by the Insurance Commission, Yap said. Yap said loan would be paid in 12 monthly installments at a preferred interest rate of not more than six percent per annum. Only the OFWs with valid employment contracts processed through licensed recruitment and manning agencies accredited by the Philippine Overseas Employment Administration (POEA) are covered by the proposed act, Yap said. Yap said OWWA shall accredit as many domestic or foreign banking institutions as possible which are duly authorized to do business in the Philippines in order to serve the loan payment needs of overseas workers-borrowers. It shall be the obligation of the overseas worker-borrower to remit the loan payment regularly to OWWA through the banking institutions, Yap said. The bill provides that within one year after the effectivity of the measure, an online payment system shall be established wherein the OFW-borrower may pay the loan amortization through the Internet. Likewise, failure to pay the loan or any violation of the terms imposed upon the loan shall be sufficient ground for the POEA and all its offices, including its deputized and accredited private entities and the Philippine Overseas Labor Offices (POLOs) to withhold the issuance of the Overseas Employment Certificate (OEC) and any other exit permit or clearance to work abroad to the overseas worker-borrower concerned. Violators face a 60-day suspension without pay for the first offense and dismissal from the service with a five-year disqualification to hold any public office for the second offense to any government official or employee. Private entity, which issues an OEC and exit permit to any overseas worker-borrower, shall suffer the penalty of 60-day suspension of its license or accreditation for the first offense and permanent cancellation of license or accreditation for the second offense. The amount needed by OWWA to implement the Credit Assistance Program for OFWs shall be charged against the Overseas Welfare Trust Fund and all payments and interest earned on the loans shall accrue to the Overseas Welfare Trust Fund. The co-authors of the measure are Reps. Isidro T. Ungab (3rd District, Davao City), Thelma Almario (2nd District, Davao Oriental), Dakila Carlo Cua (Lone District, Quirino), Leopoldo Bataoil (2nd District, Pangasinan), Celso Lobregat (1st District, Zamboanga City), Mariano Piamonte Jr. (Party List, A Teacher), Carlos Padilla (Lone District, Nueva Vizcaya), Ma. Lourdes Acosta-Alba (1st District, Bukidnon), Frederick Abueg (2nd District, Palawan), Pedro Acharon Jr. (1st District, South Cotabato), Nicasio M. Aliping Jr. (Lone District, Baguio City), Magnolia Rosa Antonino-Nadres (4th District, Nueva Ecija), Rose Marie Arenas (3rd District, Pangasinan), Rodel Batocabe (Party List, Ako Bicol), Silvestre Bello (Party List, 1 BAP), Anthony Bravo (Party List, COOP-NATCCO), Neri Colmenares (Party List, Bayan Muna), Anthony Del Rosario (1st District, Davao Del Norte), Lawrence Lemuel Fortun (1st District, Agusan del Norte), Gwendolyn Garcia (3rd District, Cebu), Ana Cristina Go (2nd District, Isabela), Agapito Guanlao (Party List, BUTIL), Gerald Anthony Gullas (1st District, Cebu), Fernando Hicap (Party List, ANAKPAWIS), Luzviminda Ilagan (Party List, Gabriela), Evelina Escudero (1st District, Sorsogon), Mark Llandro Mendoza (4th District, Batangas), Eric Olivarez (1st District, Paranaque City), Victor Ortega (1st District, La Union), Leah Paquiz (Party List, ANG NARS), Terry Ridon (Party List, Kabataan), Roman Romulo (Lone District, Pasig City), Estrellita Suansing (1st District, Nueva Ecija), Angelina Tan (4th District, Quezon), Randolph Ting (3rd District, Cagayan), Eulogio Magsaysay (Party List, AVE), Antonio Tinio (Party List, ACT TEACHERS), Juliette Uy (2nd District, Misamis Oriental) and Victor Yu (1st District, Zamboanga Del Sur). SOURCE: Media Relations Service, Public Relations and Information Bureau
Posted on: Tue, 04 Nov 2014 02:11:05 +0000
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