Unsullied commitment to mandate, public welfare

MANILA, Philippines - Recent events have raised certain issues that cast doubts on the integrity of the Pag-IBIG Fund officers. We feel the need to air our side on these issues, for the sake of the Pag-IBIG workers and our over seven million members.

It is not true that the Pag-IBIG officers orchestrated a move to convert this institution into a purely provident fund by trying to eliminate a provision in its charter mandating the allocation of 70 percent of its investible funds in housing.

We are fully committed to Pag-IBIG’s twin mandates as a provident fund for housing, and we have no desire to change these.

The Fund’s officers are keenly aware of the importance of its housing mandate, and have always supported the Pag-IBIG Board in its efforts to strengthen the Pag-IBIG housing loan program to benefit more Filipino families.

In the last few years, our hard work in carrying out the Fund’s housing program has resulted in record growth in housing loan disbursements and the number of actual member-borrowers benefited. From a housing loan take-out level of P5 billion in 2002, take-outs increased to P22.5 billion in 2007, to P34.0 billion in 2008. For 2009, we have allocated a total of P50.5 B for the Pag-IBIG housing loan program.

Contrary to speculations that we are trying to steer the Fund away from investing in housing, we have devoted not 70 percent, but 81 percent of its investible funds for its shelter finance programs in 2008. This year, it is even higher at 86 percent.

The Pag-IBIG charter, as it stands now, allows us to invest funds that are not needed for current administrative and operational requirements in other instruments, “with due and prudent regard for its safety, growth and liquidity.”

We have been placing the Fund’s non-housing investments in risk-free government securities. This contradicts speculations that Pag-IBIG officers tried to manipulate the law to be able to invest in big companies.

Another unfair accusation is that the Pag-IBIG management attempted to influence the amendments to the Fund’s charter in order to get bigger perks.

The Pag-IBIG Fund has always been managed with due regard for financial prudence and viability. Perks are the last thing on our minds.

In fact, under the new charter, the salaries and benefits of Pag-IBIG officers and employees are subject to the limitation on administrative costs, which cannot exceed two percent of the net fund asset of the preceding year. While the new law will exempt Pag-IBIG from salary standardization in government, the adjustments on salaries and benefits are limited by the cap on the amount that can be allocated for such purposes. Our workforce turnover rate has reached as high as 52% due to low wages, and our exemption from the salary standardization law is only intended to improve our ability to hire and retain good people.

The Pag-IBIG officers and employees have been working diligently to protect not just the hard-earned funds of its members, but also the integrity of the institution itself. Our workers are proud of what we have collectively accomplished as a government agency, and we do not wish to see these accomplishments tarnished by hasty speculations.

— JAIME A. FABIANA, Deputy Chief Executive Officer, NCR Operations Cluster and Officer in Charge, Pag-IBIG Fund