'In-house loan sharks preying on BFP retirees'

MANILA, Philippines - A Caloocan-based firefighters’ group yesterday told The STAR that a loan shark syndicate preying on hapless retirees exists at the Bureau of Fire Protection (BFP).

Officials of the Foundation for Filipino Fire Fighters, Inc. (widely known as F5, with membership of 250,000 nationwide) said personnel at the BFP’s Benefits Assistance Section (BAS) continue to give their members the run around in the release of their retirement benefits “unless they come across.”

They said the retirement pay will only be released when the retirement has taken out a loan financed by the so-called “loan sharks.”

F5 officials claim the “5-6 money lenders” at the BFP are skimming off some 30 percent profit from the loan every retiree has to take out from the group in exchange for the release of their retirement benefits. Otherwise, the release is delayed, some counting several years, they said.

The officials estimated that each retiree gets an average P1 million in total benefits so the lenders could be easily raking in millions of pesos under the system.

Van Resurreccion, F5 president, said in a letter to Chief Superintendent Jose Mamaril, chief, directorial staff, BFP, that they have “verified information showing the existence of such a system”.

“We have received several complaints from our already retired members that they have been given the usual run-around by BAS personnel. Out of desperation from being subjected to the same system practice in the same office, which they have complained of,” said Resurreccion.

“Some of them had no choice but to borrow from the lenders who offer their services advancing (retirement) sums of money at high interest rates to be deducted from whatever they would receive from their retirement claims,” the official said further.