KAPA bank accounts frozen, offices raided

MANILA, Philippines — The Court of Appeals has issued a freeze order on several bank accounts and other assets linked to Kapa-Community Ministry International Inc. (KAPA), which according to the Securities and Exchange Commission (SEC) was involved in the biggest investment scam to hit the country in recent years.

In a press conference yesterday, SEC chairperson Emilio Aquino said KAPA is estimated to have pooled around P50 billion from around five million of its members, who are required to make a minimum investment of P10,000.

This developed as agents of the National Bureau of Investigation (NBI) and police Criminal Investigation and Detection Group raided the offices of the religious firm in Tagum, Davao del Norte and the house of its founder Jose Apolinario in General Santos City.

KAPA, which was registered as a non-stock organization, was reportedly recruiting members and enticing them to make a “donation” in exchange for huge returns.

The organization would need a monthly payout of P15 billion to fulfill its promise of providing a monthly return of 30 percent to investors or P180 billion a year, according to SEC estimates.

“KAPA is running a scam...We have to put a stop to it otherwise there will be more victims,” Aquino said.

The SEC had earlier revoked KAPA’s certificate of incorporation for serious misrepresentation. It also issued a cease and desist order on its operations.

Over the weekend, President Duterte ordered the closure of KAPA for conducting fraudulent activities.

Philippine National Police chief Gen. Oscar Albayalde said the PNP and NBI are making headway in their probe of the activities of KAPA. – Emmanuel Tupas, Edith Regalado