New Cebu city requirement: POEA clearance needed for biz permit application

CEBU, Philippines - To help curb illegal overseas recruitment, the Cebu City Treasurer’s Office will not issue permits to agencies if they fail to present clearances from the Philippine Overseas Employment Administration.

This after acting mayor Edgardo Labella earlier ordered City Treasurer Diwa Cuevas to be “meticulous” in processing the application and renewal of business permits, following reports on illegal overseas employment by fake labor recruiters.

“We cannot accept their application or renewal if they will not submit the clearance [certifying] that they are in good standing with [POEA],” Cuevas told reporters yesterday.

The standard period for the application and renewal of business permits started yesterday, January 4, and will end on January 20. The CTO has a pending request for the City Council’s Committee on Budget and Finance to extend the period.

Aside from within the City Hall, business could also renew their permits at the offsite processing venue at the SM City Cebu – Trade Hall from 9 a.m. to 6 p.m. within the said period.

Cuevas said that they have not previously revoked any business permits of labor recruitment companies.

“We have not denied any application of the renewal of business permits and we just kept on approving them (during past years) since our office has not received any report yet on illegal recruitments. But now that we have an advice from the acting mayor, of course, we have to follow,” she said.

On December 18, Labella sent a written communication to Cuevas informing her on applicants for overseas employment losing their financial resources to fake recruiters.

“I think that one way that we can help curb this problem is for us to be more meticulous in the processing of applications for business permits of labor recruiters, especially in ascertaining that the applicant has been accredited by the Philippine Overseas Employment Administration,” read the one-page letter.

As to establishments that do not secure business permits from the city, they are penalized with a fee of two percent of the monthly interest and 25 percent surcharge.

Cuevas said that those who could not complete the documentary requirements are issued temporary business permits that are good until April 20 to give the establishments additional time.

With the application and renewal of permits, CTO is targeting to collect around P1.5 billion in business taxes this January.  (FREEMAN)