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Trust fund for overseas workers incurs huge losses
The Overseas Workers Welfare Administration (OWWA) has suspended its pre-departure loan programme for Overseas Filipino Workers (OFWs) after incurring losses totalling a whopping 70 million pesos (Dh6.36 million),
- By Cher Jimenez, Correspondent
- Published: 00:27 May 5, 2008
Manila: The Overseas Workers Welfare Administration (OWWA) has suspended its pre-departure loan programme for Overseas Filipino Workers (OFWs) after incurring losses totalling a whopping 70 million pesos (Dh6.36 million), Labour Secretary Marianito Roque said.
"I decided to suspend it because no one is paying and so we have these losses [to contend with]," Roque, who is also current OWWA chief, explained.
The Migrant Workers Act of 1995 mandates OWWA to allocate a portion of the OFW trust fund for its pre-departure loan programme that allows workers to borrow a maximum of Dh3,636, which they may use to pay placement fee and other needs before deployment abroad.
Roque said only 30 per cent of those who have applied for loans totalling Dh6.36 million have paid so far. OWWA has allocated Dh9.1 million for the programme, which seeks to give financial assistance to departing OFWs.
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