Lina bares nationwide ‘paluwagan’ program

Jueteng collectors could spearhead a paluwagan or the pooling of money for a common benefit in their communities as a means of discouraging betting in the illegal numbers game and other forms of gambling.

In a paluwagan, a minimum of five people put up a common fund so each of them could receive a stipend once a year, which is a bit higher than the amount they had contributed.

A similar system known as "Bayanihan Banking Centers" was set up in Pasay City recently to allow members in each barangay to save money.

Last week, Malacañang presented the Gawad Galing Pook 2002 to the "paluwagan" in Pasay City.

Interior and Local Government Secretary Jose Lina Jr. said yesterday a "paluwagan" would be implemented in barangays nationwide starting next year.

"We will replicate Pasay’s project nationwide with the help of non-government organizations," he said.

Speaking at the Bulong-Pulongan at the Westin Philippine Plaza, Lina said the project will be unveiled in Malacañang on Dec. 14.

"The ‘paluwagan" would encourage people to save money instead of spending it to bet on jueteng or masiao," he said. "For example if 20 million Filipinos would save at least P10 a day, it would easily transform to a savings of P9.6 billion a year."

Lina said the "paluwagan" would allow people to save money which they could use as capital in starting micro-enterprises and other businesses.

"You could see the transformation of the people of Pasay who joined the cooperatives’ paluwagan projects," he said. "Because when people save, they also put order in their lives."

Lina said the role of non-government organizations would be critical in making the project a success and encouraging the people to save their money.

"Aside from that, the cooperatives would conduct seminars for values formation, skills development and even spiritual development," he said. "It’s actually a holistic approach towards the improvement of people’s lives."

Lina said local governments would help out in terms of human resources development and that participants could deposit their money in a cooperative or the Land Bank of the Philippines.

"There won’t be any doleout from local governments," he said.

The "paluwagan" project would undergo a six-month trial period, Lina added.