Admission of P70-M OWWA losses a cover-up to more fund misuses and mismanagement

Press Release
By Migrante ME
May 5, 2008

An alliance of overseas Filipino Workers’ organizations based in the Middle East on Sunday said that the admission of OWWA fund losses by no less than the Labor Secretary is merely a cover-up to more OWWA misuses and fund mismanagement.

“The admission maid by Labor Sec. Marianito Roque that OWWA has incurred losses of about P70 million in pre-departure loans availed by OFWs if found to be true has indeed validates that OWWA has been mismanaging the OWWA fund, a compulsory collection of US$25 per OFWs on a yearly basis which is believed to have reached P10-B held in trust to the government,” said John Leonard Monterona, coordinator of Migrante Middle East.

“OWWA fund losses by such admission from Sec. Roque is merely a cover up to the misuses and mismanagement of OWWA fund and thus the official made it as a justification why they have stopped OWWA Welfare programs and services to OFWs and families,” Monterona added.

Monterona said that Sec. Roque was only forced to divulge and admit such losses of OWWA fund as the Congress, both Senate and House of Representatives, is on the move to investigate the alleged misuses of OWWA fund.

Monterona said that it has been noted that the pre-departure loans for OFWs have been suspended right after when the OWWA Omnibus Policies have been passed and implemented by OWWA Governing Board headed by then Labor Sec. Patricia Sto. Tomas year 2003.

“Such admission of OWWA losses is not new to us. We have been hearing same old story every time the P10-B OWWA fund misuses and mismanagement is a hot issue: the OWWA Administrator usually admits losses of OWWA fund to cover up huge misuses and mismanagement of the fund,” Monterona averred.

The OFW leader recalled the admission made by then OWWA Administrator Virgilio Angelo of the P260-M bogus claims of welfare programs such as loans for OFW medicare and family assistance loans only to justify the transfer of P4-B OWWA Medicare fund to Philippine Health Insurance Corporation (Philhealth) prior to 2002 Presidential election.

“We suspect more hidden misuses and diversion of funds have been done or charged to OWWA fund. Thus, we reiterates our call to the Members of the Senate and House of Representatives especially its respective committees to pass a legislation defining the proper uses of OWWA fund, so as to secure the OFW fund which has been misused by the present administration,” Monterona added.

“We challenge Sec. Roque to re-implement all the welfare programs OWWA has been removed due to the implementation of OWWA Omnibus Policies and consider the lowering of OWWA membership fee from US$25 (P1,050 if exchange rate is 1:42) to P500 per OFW,” Monterona averred.

Monterona said that since the amount of OWWA fund is now reaching to P10-B now, it is but prudent on the part of OWWA to consider lowering OFW membership fee from considerable amount per returning OFWs and aspiring alike especially in time of soaring prices of food, gasoline and LPG.

“Lowering of OWWA membership fee and removal of other unnecessary government fees charged and collected from OFWs and aspiring alike would surely bring ease to OFWs and their families in time of economic crisis,” Monterona ended.