The Social Security System (SSS) is calling on members with outstanding loans under the Stock Investment Loan Program (SILP) and the Privatization Fund Loan Program (PFLP) to sell the shares of stocks that they acquired through those programs to enable them to finally pay off the loans that until now remain outstanding.
However, SSS officials said the offer to act as agent in selling the shares of stocks does not carry with it an offer to condone the penalties and interest on the unpaid loans that the selling members would still have to pay in full in case the proceeds from the sale of the shares do not cover the amount of the delinquent loan plus penalties and interest.
As of December 2014, the total delinquent accounts under the SILP amounted to P304.44 million, inclusive of penalties and interest. The SILP was launched in the late 1980s to offer loans to members so they can invest in the stock market.
For the PFLP, total delinquent accounts as of December 2014 totaled at P304.19 million, including penalties and interest. In 1994 the PFLP offered loans to members so that they can participate in the initial public offering of Petron shares that at the time was owned entirely by the government. It was also made available to SSS members who wanted to buy shares of stock of Manila Electric Co. the SSS was selling at that time. The total delinquent accounts for the two loan programs total P608.63 million, a bulk of which are the penalties and interest charged upon the principal loan. Under the offer to act as agent to sell the shares acquired under the two loan programs, the member will execute a Special Power of Attorney authorizing the SSS to sell his shares of stocks at the prevailing market price, based on the quotation of an accredited broker and subject to the usual broker’s commission, taxes and other fees.
David Cagahastian