Tough love Pag-IBIG sues 30 delinquent employers

CEBU, Philippines - Thirty delinquent employers have been charged by the Home Development Mutual Fund (Pag-IBIG Fund) Cebu City after these were verified as not having enrolled their workers with Pag-IBIG or failed to remit the monthly contributions of their workers.

Maria Corazon Cinco, Pag-IBIG Cebu City marketing and enforcement division chief, said the 30 delinquent employers also did not respond to their letters of warning.

Cinco said that these delinquent employers have always been the challenge of the institution while admitting that they are having a hard time monitoring small-time employers or those in the manning agencies.

“That’s why we are encouraging our members to immediately report to us if they find that their employers are not remitting their contributions,” Cinco said.

“We would like to appeal to all employers because it is their social responsibility. Aside from the fact that they have to pay for the penalty of three percent per month delay, they are depriving their employees of the benefits from Pag-IBIG,” she added.

Cinco said that if a member’s remittance is delayed, it will affect the process from which he or she can avail of the loan services. She said employers are in effect robbing workers of their hard-earned money.

Meanwhile, department manager Rio Teves assured members that Pag-IBIG fund, as a financial institution, is financially stable as funds are “well-managed and prudently invested” for the benefits of the members.

Teves reported that for this year, Pag-IBIG has already set aside P1.348 billion of funds for the multipurpose loan for their target of 1,699 member beneficiaries.

He clarified that if the P1.348 billion is already availed, it does not mean that other members cannot borrow anymore. Pag-IBIG could release funds for its loan services even if it shall exceed its target for the year.

“As what I have mentioned, we have the funds available for our members. Sometimes they say na ang Pag-IBIG puro love lang walang pera. That’s not true. All love, lots of funds mi sa mga members,” Teves said.

He added that they are targeting to reach 33,000 memberships for this year. Last year, they recorded a total 275,975 members.

In 2009, Pag-IBIG Cebu City branch has released 1,760 house units for the same number of beneficiaries with a loan value of P1.302 billion while there were 72,145 members who have availed of the multipurpose loan amounting to P1.290 billion.

Teves said that they expect to have more members availing of the housing loan as demands for housing keeps increasing per year.

He said they are encouraging more developers to avail of Pag-IBIG’s developmental loan service to interested developers who would want to invest housing and sell it to Pag-IBIG members.

He reported that last year, they have released about P4.3 billion to developers nationwide who have accomplished 90 housing projects that produced 10,000 housing units. – Jessica Ann R. Pareja/BRP (THE FREEMAN)