THE Overseas Workers’ Welfare Administration (Owwa) has suspended its predeparture-loan program for migrant workers after incurring losses amounting to P70 million.

“I decided to suspend it because no one’s paying, and so we have these losses,” Labor Secretary Marianito Roque, who is current Owwa chief, said. 

Under the Migrant Workers Act of 1995, the Owwa is mandated to allocate a portion of the Overseas Filipino Workers Trust Fund for its predeparture-loan program that allows workers to borrow a maximum of P40,000 which they may use to pay for placement fee and other needs before deployment abroad.

Roque said only 30 percent of those who have incurred loans totaling P70 million have paid so far. The Owwa has allocated P100 million for the program which seeks to give financial assistance to departing workers.

He added that while the law supports such project, the Owwa has no choice but to suspend it until it recovers from the losses.

“We’ve released P70 million and only 30 percent have paid, so how can we survive?” he asked.

“Historically, sa Owwa iyan ang problema, ang sama ng payment rate,” Roque said, adding that borrowers are given a year to pay at minimal interest rates.

Roque said his office tried to pursue borrowers through their local comakers but were told the workers will no longer pay because of the $25 they pay for Owwa membership for every overseas contract they enter into.

“They say that the $25 they pay is also OFW money, so it’s like already paying for the loan,” he quoted workers’ relatives as saying.

Despite the huge losses, Roque assured the Owwa’s funds are intact.

“Our cash flow is stable,” he said adding that the OFW Trust Fund’s total assets stands at P10.2 billion with P8.2 billion in various investments while the rest are being used in assistance programs benefiting workers including repatriation of those in distress.

The OWWA collects an estimated $75,000 daily from some 3,000 migrant workers who leave the country everyday and pay the $25 membership fee.

Roque said his office would still pursue borrowers to settle their loans.

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The Department of Education (DepEd) on Sunday expressed optimism that the interventions it is doing will help reduce the number of undernourished students feared to reach more than 20 percent or more than 2 million this school year.

THE Overseas Workers’ Welfare Administration (Owwa) has suspended its predeparture-loan program for migrant workers after incurring losses amounting to P70 million.

Robert Swift, the lead American lawyer of the 9,539 victims of martial law, will be in the country this week to meet with the leaders of the victims, to discuss the possibility of entering into a compromise agreement with the government regarding Marcos assets reaching $100 million but under litigations in US and Singapore courts in the last ten years.

THE recently concluded National Police Chief Cup shooting tournament in Clark Field, Pampanga, was able to raise P2 million, which will go to the Pulis Gawad Kalinga Special Housing Project for policemen.