How about You – OFWs? Are you in favor of Philippine Divorce Law?

Senator Aquilino “Koko”Pimentel III announced Tuesday night (22 May, 2012)  that he and wife of 12 years, Jewel, had been separated since November 2011 while Senator Francis “Chiz” Escudero admitted in various media interviews that he and his wife, Christine, had parted ways.

Senator Pia Cayetano has been separated for the past eight years and is now in the process of annulment.

I think that divorce should be availed by people who become homicidal at the sight of each other. That is much better than making each other miserable for the rest of their lives, and impacting the lives of their children as well,”  – Senator Miriam Santiago

***

“slowly pull the ring out”

OFW husband who had not returned home for three years.  He called from Saudi Arabia, saying, “Kumusta na kayo?” The wife replied: “Salamat sa mga padala mong pera. Ang beer house natin ay KTV Bar na! Ang tricycle natin, taxi na. Ang one-story house ay three stories, at ang 2 anak natin ay apat na!” Four in three years! How come?  (taken from “Heavy Crosses our O.F.W.’s Carry“)

Overseas Filipino workers (OFWs) are the most prone to be gripped with infidelity. Distance from loved ones force an OFW to find love and comfort in countries where they work, thus leading most likely to third parties. (taken from  All out of Love?)

***

A pleasing quality of a wife or a husband is a good disposition. An ill-tempered or ungrateful or loquacious or imperious couple leads to an agonizing married life, and is a great hindrance leading a moral life. – Anonymous

“The family is the most adaptable of all human institutions, changing with every social demand. The family does not break in a storm as oak or pine trees do, but bends before the wind like the bamboo tree in Oriental tales and springs up again.’’ – Paul Bohannan (American anthropologist)

***

The  Philippines and Malta are the only two remaining countries in the world without a divorce law. This bill is being introduced based on indications that the Philippine society is ready for the legalization of divorce.

The sanctity of marriage is not based on the number of marriages existing but on the quality of marital relationships. When a marriage is no longer viable, divorce should be an option.Explanatory Note, HB # 1799

***

How about You - OFWs?  Are you in favor of  Philippine Divorce Law?

Embassy Reminds Filipinos To Register As Overseas Absentee Voters

Press Release No. 77-2012 / 15 May 2012

Embassy Reminds Filipinos To Register As Overseas Absentee Voters

The Philippine Embassy in Riyadh reiterates its invitation to all Filipinos in the Kingdom of Saudi Arabia to register as Overseas Absentee Voters (OAV). The National Elections for Senators and party-list representatives shall be on 13 May 2013 - exactly a year from today.

If you are any of the following, you are required to register as an Overseas Absentee Voter:

1. Those who will turn 18 years old by 13 May 2013

2. Those who have never registered as a voter since birth

3. Those who have registered as a voter in the Philippines but plan to cast their votes in Saudi Arabia

4. Those who have previously registered as OAV but failed to vote during the last two  consecutive National Elections in 2007 and 2010

5. Those who have previously registered as OAV in other countries or regions in Saudi Arabia and have since transferred to Riyadh or nearby areas

The Embassy wishes to invite all Filipinos in Riyadh and nearby regions to register as Overseas Absentee Voters during the Embassy’s field OAV registration at the following venues:

* Al Danah International School (ADIS), Suleimaniah District, Riyadh

   18 May 2012, Friday, from 8:00AM to 5:00PM

* International Philippine School in Riyadh (IPSR), Olaya District, Riyadh

   25 May 2012, Friday, from 8:00AM to 5:00PM

 * Al Taj International School, Suleimaniah District, Riyadh

    08 June 2012, Friday, from 8:00AM to 5:00PM

 * Palm Crest International School, Suleimaniah District, Riyadh

     22 June 2012, Friday, from 8:00AM to 5:00PM

* Elite International School, Suleimaniah District, Riyadh

    29 June 2012, Friday, from 8:00AM to 5:00PM 

Philippine International School in Buraidah (PISB), Buraidah, Al Qassim

    05 to 06 July 2012, Thursday and Friday from 8:00AM to 5:00PM

* Riyadh International School, Suleimaniah District, Riyadh

    20 July 2012, Friday, from 8:00AM to 5:00PM

* International Philippine School in Riyadh (IPSR), Olaya District, Riyadh

    27 July 2012, Friday, from 8:00AM to 5:00PM

OAV Registration is also ongoing at the Philippine Embassy Lobby, Diplomatic Quarter, Riyadh from Saturdays through Wednesdays from 8:00am to 5:00pm and on Thurdays from 8:00am to 12:00nn.

All OAV registrants are encouraged to bring their Philippine passports (or a photocopy), iqama, or other identification cards showing their full name.

 The deadline for OAV registration is on 31 October 2012. END.

Sponsorship system on its way out

 

14 May, 2012 /RIYADH : Deputy Labor Minister for workers affairs Ahmad Al-Humaidan said that the ministry had started taking practical steps aimed at scrapping the individual sponsorship (kafala) system.

“We have already begun changing some technical terms related with the sponsorship system, like changing the term ‘transfer of sponsorship’(naql kafala) to ‘transfer of services.’ Other steps included preventing sponsors from holding passports of foreign workers and canceling the condition to obtain the sponsor’s approval for workers to bring their families to the Kingdom,” he said. 

The deputy minister made the remarks while addressing a seminar on private health firms in Riyadh, Al-Eqtisadiah business daily reported yesterday. read more>>>>>> 

By RIYADH: ARAB NEWS

Justice Ministry to settle labor disputes in future

 

Minister of Labor Adel Fakeih announced his ministry would transfer labor disputes to the Ministry of Justice within three years after the issuance of the new criminal procedures law.

He also disclosed that the number of foreign workers in the Kingdom has reached 9 million, including 1.5 million domestic workers.

Speaking to Alsharq Arabic daily, Fakeih said the ministry received 9,956 complaints and cases involving workers last year.

“Of these, the majority of cases were related to foreigners. There were 5,715 cases (57.4 percent) involving foreigners while cases involving Saudis were 4,241 (42.6 percent),” he said, adding that the ministry was able to settle 8,628 of these cases.

The minister said transferring labor issues to the Ministry of Justice and subsequently to various courts would be more beneficial.

“Cultural Differences”. If a Saudi man holds another man’s hand in public it’s a sign of mutual respect. (Don’t do it in Australia, Texas or Liverpool, England)

“There would be a legal basis while settling labor disputes if they are taken to the courts. This would, no doubt, improve the efficiency of the judicial process while handling labor litigation in addition to expediting their settlement,” he said.

Fakeih hoped the Ministry of Justice would take the initiative to set up labor courts to settle various labor issues.

“We would make available our resources if the Ministry of Justice asks for it during the transition period after establishing labor courts. The setting up of labor courts would ease the burden of our ministry in settling numerous labor problems,” he said.

Referring to multitude of labor disputes, the minister said that there is nothing unusual in it while considering the nature of labor markets anywhere in the world.

As far as Saudi Arabia is concerned, there is every scope for an increase in the number of such problems because of the huge number of foreigners who belong to about 150 countries. The social and cultural backgrounds of these workers are immensely diverse,” he said, adding that the differences of views and outlooks between employer and worker may lead to strained relations and eventually disputes.

By RIYADH: ARAB NEWS ; Published: May 13, 2012 02:21 Updated: May 13, 2012 02:21

Embassy Condoles with Family of a Ward at Bahay Kalinga

 

RIYADH, 9 MAY 2012:  The Philippine Embassy in Riyadh condoles with the family of a female ward who died today at Bahay Kalinga.

Ambassador Ezzedin H. Tago offered his sincere condolences to the family of a ward who died at today at Bahay Kalinga despite persistent attempts by the Embassy and the Philippine Overseas Labor Office (POLO) in Riyadh to seek medical attention for her. The female ward was admitted to Bahay Kalinga on 17 April 2012. She was already suffering from an advanced stage of breast cancer.

She had absconded from her employer in 2009 and only sought the Embassy’s assistance recently. She was brought by the Embassy thrice to hospitals in the Kingdom but was refused admission for not having valid immigration documents.

In behalf of the entire Embassy, I offer my sincere condolences to the family and friends of our dear kababayan. The Embassy in now coordinating with concerned Saudi authorities for the immediate repatriation of her remains to the Philippines,” said Ambassador Tago.

The Embassy has informed the family of the deceased in the Philippines of the incident. The name of the female ward is being withheld to protect the privacy of her family.

The Embassy reminds all Filipinos to immediately seek the assistance of the Embassy and POLO Offices for any employment-related complaints. All Filipinos in the Kingdom who have employment and immigration concerns are advised to immediately report to the Embassy and POLO Offices in the Kingdom to avoid situations requiring urgent intervention such as terminal health conditions. END.

Country’s pride is at stake

 

Professional Skills Test

The Saudi government a few years ago introduced by requiring all professional expatriates in the field of engineering and medical profession to take Saudi Council exam prior to practice their profession within the Kingdom.

According to Saudi Commission the purpose of the Saudi Council exam is to evaluate the professional abilities and efficiency of expatriates in the Kingdom and to ascertain that all foreign professional workers are in accordance to the standard of safe practice in their respective field of profession. Though these doesn’t mean that an expat professional get a practice license after passing the test, it just mean that he or she have reached the standard required by the Commission to practice their chosen field of profession.

For those in medical profession, expats can take exam at Saudi Commission for Health Specialties (SCFHS) and Engineers have to be registered with the Saudi Council of Engineers (SCE) for the issuance and renewal of their iqamas or resident permits.

And just recently, the The Ministry of Labor announced that they will issue work permits to foreigners on the basis of their performance in the professional skills tests.

It is very clear therefore that the Saudi Government and the Saudi business private sector as well want to make sure that their expatriates are highly qualified in their field of expertise. The professional test can also help identify that they’ve attained a professional standard within their respective skills and profession.

Obviously, in my personal opinion the move will also give way to Saudi young professionals to compete with expatriates and in the long run Saudi authorities will see to it that all work force in Government and private sector are filled in by their own nationals. This is of course part of the host country’s Saudization program.

Credentials Verification

Today’s blog entry is just a reminder to all expatriates not to get involve in fraud by submitting falsified or false documents or credentials. Passing the host countries government regulation such as Saudi Council exam doesn’t mean that “you’re off the hook” and can freely practice your profession the way you want it to be.

After the expatriate passed the examinations and the employer observed that the worker is not qualified on the actual given job, the authorities will verify certain education, professional credentials and work experience of the employee. This is a necessity to ensure that the worker meet the minimum training/education and experience required for the position.  Upon  discovery that an employee provided false or misleading information, or omitted information, related to such education, professional credentials and professional experience, the employer will instruct their Human Resources Department to determine appropriate disciplinary action. It is the responsibility of the hiring department to conduct credentials verification and inquire with the labor sending nations government entities for clarification.

Falsifying records is never a good idea, and the implication of falsifying documents depends on the circumstances involved and the host country’s applicable law on this regards.

Saudi Arabia Visa Regulation

In most countries, if you were caught falsifying documents seeking employment abroad, there will be a criminal convictions but in Saudi Arabia there are other consequences as that may seem even more harsh penalties with higher cost and worse outcomes.

Sad to say that illegal activity is becoming increasingly common in recruitment business, not only in the Philippines but from other labor sending countries like; Pakistan, India, Bangladesh, China, and other nations. According to the website of BackgroundCheck Private Limited (formerly DataFlow Pakistan Pvt. Ltd), the largest and prestigious primary source verification provider in Pakistan says, “fake professional qualification is a serious crime and threaten the safety of public. Engineers, Doctors, Teachers, Heavy Vehicle Drivers and even Pilots have been identified as unqualified when their professional qualifications and licenses were checked. Over 1 million quacks are operating freely in the medical profession in Pakistan and 150,000 are present in Karachi alone.”

On the other hand, in India, the son and daughter of state Health & Family Welfare Minister were allegedly given jobs in the government on the basis of “fake” degree certificates.

In Philippines, the “Recto Forger University” is very much alive and kicking  up to these days.

Assuming, an expat get hired in Saudi Arabia based on the false information, the employer can simply fire or deport the worker at any time and barring that person from entering the country again or in any GCC countries as well.

However,  if the Kingdom will implement  their strict law, Saudi Arabia Visa regulation states that taking employment or helping any individual to take an employment based on forgery or cheating; submitting forgery documents or providing false statements to Saudi authorities in the Kingdom or any countries for issuance of employment visa or any kind of visas; forgery, easement or changing the content of foreign travel documents may have the following strict penalties.

• If the violator is an expatriate, he shall be fined 10,000 S.R. or imprisoned for 3 months or both, along with the termination of his Iqama and deportation from the Kingdom.

• If the violator is a Saudi Citizen, he shall be fined 10,000 S.R. the first time; 15,000 S.R. in the second time along with one month imprisonment; 15,000 S.R. in the third time along with 3 months imprisonment. Type of violation shall be considered while applying the penalty.

• These penalties are applicable to the principal perpetrator, partner and contributor.

• Paid money shall be confiscated in all cases.

• Fines are multiplied according to the number of individuals involved and violations.

The Philippine scene

However, if there will be no convictions rendered on such case  by the host country against the employee /worker (OFW), a just simple deportation proceedings would be handed to the violator.  

Again, sad to say, the story doesn’t end well for the offender. In Philippines, the state has the right to file a case against the persons or entity who in one way or the other participated knowingly and in common intent unites in the completion of a crime or an offense.

Therefore, the employee and the recruitment agency, together hand in hand (Hawak Kamay) should faced the consequences of their action. They are both liable to the offense that has been committed. ( In every action, there is an opposite and equal reaction – The Theory of Flight).

According to the provision of  Philippine Overseas Employment Administration (POEA) Rules and Regulationsengaging in act/s of misrepresentation, such as giving false statements, false testimonies or falsified documents in connection with recruitment and placement of workers, such as furnishing or publishing any false notice, information or document in relation to recruitment or employment” is a serious offense and grounds for suspension, cancellation or revocation of  recruitment license under Article 39 of the Philippine Omnibus Rules implementing the Labor Code (Pre-Employment) and could be otherwise categorized as criminal violation under Article 171 of the  Philippine Revised Penal Code.

Why criminal offense? Frequently Asked Questions on Philippine Criminal Law states “The falsification of a public document may be a means of committing estafa because before the falsified document is actually utilized to defraud another, the crime of falsification has already been consummated, damage or intent to cause damage not being an element of the crime of falsification of public, official or commercial documents. The damage to another is caused by the commission of estafa, not by the falsification of the document; hence, the falsification of the public, official or commercial document is only a necessary means to commit the estafa.”

***

To my readers and aspiring OFWs out there, don’t use fraudulent documents to land jobs abroad, always think of the consequences that would befall upon you once you get caught. Be treated with dignity – our country’s pride is at stake. 

Filipino golfer captured Golf Championship Tournament in Riyadh

RIYADH: Riyadh Filipino golfer Resty Sibug scored a victory last Friday when he won the inaugural BMW InterContinental Golf Championship 2012.

Overall champion Resty Sibug, second left, with sponsor and organizers after the awards ceremony. (AN photo)

Sibug secured the overall lead in a 2 under net score of 54 participated by over 100 players of 15 different nationalities. He took home a Callaway RazrX Black golf set and BMW crystal trophy of the championship and bagged the Best Gross prize.

The two day tournament ended successful despite the severe sandstorm that swallowed the city and reduced visibility in the Kingdom’s capital for several days.

Sibug, is a mechanical engineer and area manager at Saudi TKT, Co. Ltd., a Saudi-German Joint  company and one of  the leading contractor in the field of Electro-mechanical Services in the Kingdom.

Engr. Resty Sibug was the past President of  the Philippine Society of Mechanical Engineers (PSME) and currently the Community Relations-Director General of the OFW Congress, representing PSME in the 21-member executive council.

Money transfer to Philippines made easy with ANB-BDO tie-up

A Philippine Embassy official said in Riyadh in 2011 there were more or less 9 million OFWs around the world who had sent remittances worth $20.1 billion last year, representing a 7.2 percent rise over the figure of $18.3 billion registered the previous year.

Welfare Officer Romeo C. Pablo added the number of Overseas Filipino Workers (OFWs) in the Kingdom is 1,080,662, of whom 985,766 are OFWs and the rest temporary migrants.

Pablo made his statement at the launch of the Arab National Bank’s partnership with Banko de Oro (BDO), who will work on ANB’s TeleMoney initiative to serve OFWs in the Kingdom. The ceremony was held at the Philippine Embassy in Riyadh and attended by various community leaders and a number of OFWs working in the city.

The event was attended both by officials representing the two banks including Anwar Al-Murshid, head of TeleMoney Business, Shalimar Salomabao, TeleMoney division product manager, Jonathan C. Diokno, senior vice president and head of the BDO Remittance Origination. Tomas Victor Mendoza, first vice president of BDO Remittance Project, was also present.

BDO is a full-fledged bank in the Philippines and a member of the SM Group, one of the country’s largest and most successful conglomerates with business enterprises spanning between retail, mall operations, property development and financial services.

Outlining the new services in his opening remarks, Salomabao said OFWs could now remit to the Philippines with better convenience and flexibility through BDO’s extensive network of 700 branches, 46 SM Mall Forex counters and BDO onsite outlets. It also has 155 branches across rural bank partners.

He said direct deposits to BDO accounts was possible within 30 minutes and cash pick-ups at any BDO branches nationwide within 24 to 48 hours, among other services.

Speaking on the occasion, Pablo said the launch today would be a great help to the OFWs, especially their families.

“So today, as we celebrate the launch of the ANB and BDO TeleMoney and remittance service center based here in Riyadh, I can say these two innovative financial institutions play a very important role in the advancement of the welfare of the OFWs and their families. The expanding variety of products and services offered by ANB and BDO will surely help and support OFWs and their families,” he said.

POLO Welfare Officer Romeo C. Pablo, TeleMoney Division Product Manager Shalimar Salomabao, Senior VP-Head of BDO Remittance Jonathan C. Diokno and 1st VP-BDO Remittance Project’s Tomas Victor Mendoza at the launch of the ANB-BDO tie-up.

Manuel A. Amora, secretary-general of the OFW Congress who acted as moderator, reaffirmed remittances to the Philippines reached an all-time high last year, as demand for Filipinos workers remained strong even amid economic and political challenges confronting labor markets in the West and the Middle East.

He said there were remittances of $20.1 billion in 2011, marking a 7.2 percent rise over the $18.3 billion registered the previous year. The growth in remittances was due to the increasing demand for Filipino workers from foreign employers including Saudi Arabia.

The biggest sources of remittances last year were the United States, Canada, Saudi Arabia and the UK. He said cash transfers from overseas Filipinos continued to be a major contributor in stimulating domestic demand.

However, remittances passing through alternative or illegal channels had increased from 25 to 70 percent of total OFW remittances, he said.

Imagine if we use the proper channels in sending remittances to our loved-ones. Therefore, the remittances programs of BDO for OFWs have conducted tie-up arrangements with foreign banks or banks in host countries, promoting greater use of the formal remittances system.”

Al-Murshid said ANB-TeleMoney was established in 1992 starting with the TeleMoney Center at Batha Riyadh. He said TeleMoney was the market leader for Philippine remittances in the Kingdom, as most of OFWs trusted the service. TeleMoney also has the fastest credit to account service.

TeleMoney also expanded network coverage to almost 100 remittance centers nationwide, providing increased convenience and accessibility to their customers.

“We also enhanced our correspondent bank networks in the Philippines by recently adding BDO to our existing roster of Philippine banks such as PNB, RCBC, BPI & Metrobank. In the coming months Land Bank of the Philippines and China Bank will be on board for ANB-TeleMoney to provide better remittance services to OFWs in the Kingdom,” said Al-Murshid.

ByRIYADH: ABDUL HANNAN TAGO, ARAB NEWS STAFF

Published: Apr 15, 2012 00:34Updated: Apr 15, 2012 00:34

http://arabnews.com/saudiarabia/article612870.ece

Increase legal channels of remittance

Remittances to Philippines reached an all-time high of over $20 billion last year as demand for Filipino workers remained strong even amid economic and political challenges confronting labor markets in the West and the Middle East.

The Bangko Sentral ng Pilipinas reported that remittances of $20.1 billion for 2011 marked a 7.2-percent rise over the $18.3 billion registered the previous year. The growth in remittances came about as job orders for Filipino workers from foreign employers and that includes Saudi Arabia.

The biggest sources of remittances last year were the United States, Canada, Saudi Arabia, United Kingdom, Japan, United Arab Emirates, Singapore, Italy, Germany, and Norway.

The Banko Sentral ng Pilipinas said “Cash transfers from overseas Filipinos continued to be a major contributor in stimulating domestic demand”.

Despite global economic crisis, OFW Remittances were credited for helping the Philippine economy grow in 2011 even as exports income weaken amid dwindling demand from countries experiencing economic crisis, including those countries called ”economic giants” mainly Europe and the United States.

The Philippines last year is the fourth-biggest recipient of remittances next to China, India, and Mexico.

But despite of this good news there is still impending problem that needs to be rectified. Estimated remittances passing through alternative channels or improper channels had reach from 25 to 70 percent of the total OFW remittances according to BSP. Let’s imagine those percentage if we use the proper channel in sending remittances to our love ones. Thus – the remittance programs for OFWs of  the just concluded launching of Banco De Oro and Arab National Bank Telemoney Remittance Services in the Kingdom and so with other Philippine banking institutions had forged a tie-up arrangements with foreign bank hosting Filipino workers in the promotion of greater use of formal remittance systems by Overseas Filipinos.

To strengthen the remittance programs of our government as well as the private banking sectors and in response to increase legal channels of remittance, We OFWs, reiterated our previous demands addressed to our Government and banking institutions to look into ways for the creation of an OFW Stabilization Fund and or special exchange rate for OFW remittances.  In this way, we can lessen or perhaps eradicate totally the remittances passing through improper means. – by: BongA

Launching ANB Telemoney – BDO Remittance Services

 

The  Arab National Bank  (ANB), the Kingdom’s leading banking institution and Banco De Oro (BDO) will formally launch  their ANB TeleMoney - BDO Remittance Services in the Kingdom.

It will be held in our Philippine Embassy in Riyadh  (Bonifacio Multi Purpose Court, Diplomatic Quarter) on April 12, 2012 (Thursday) from 6:00 PM to 9:00 PM.

Arab National Bank was established  in 1979, and as listed Saudi joint stock company, it now ranks among the 10 largest banks in the Middle East.  It provides services to retail and corporate customers through its extensive network of 183 branches spanning the Kingdom, including 42 ladies branches/sections.
 
Banco De Oro or BDO is a full service Universal Bank in the Philippines and member of the SM Group, one of the country’s largest and most successful conglomerates with businesses spanning between retail, mall operations, property development (residential, commercial, resorts/hotel), and financial services.
 
It was long awaiting business opportunity to onboard BDO within ANB TeleMoney and finally the following BDO services will be available in TeleMoney, kingdomwide.
 
 TeleMoney-BDO provided Fast and Safe Remittance services to Philippines, can be received within 30 minutes after sending to any TeleMoney Centers
 
TeleMoney-BDO is the only bank in Saudi that provide FOOD Remittance (Jolibee and Max’s Restaurant) and will be delivered  to the home address of  OFW family in the Philippines
 
And has a very Competitive Exchange Rates PHP/USD

Ministry completes study on replacing sponsorship system

FEATURED NEWS ARTICLE :

Arab News  By : GALAL FAKKAR

The Labor Ministry has completed a study on prospects of canceling the individual kafala (sponsorship) system replacing it with recruitment companies. The move may lead to the nullification of sponsorship system all together at a later stage.

The study, which took five years to complete, included the rules and regulations for the new recruitment companies. “The study will be presented to the Council of Ministers shortly for approval,” an informed source told Arab News.

The study proposed the formation of a commission under the Labor Ministry to look into foreign labor issues and put end to the traditional sponsorship system. The commission will be based in Riyadh and will have branches in major cities.

The study advised the government not to hold passports of foreign workers and cancel the condition of obtaining sponsor’s approval for a worker to bring his family to the Kingdom.

According to the new system, an employer would not be responsible for the wrong actions of a foreign worker outside his work. “The new system is designed to protect the rights of both foreign workers and employers,” the source said.

The study proposed introduction of a mandatory insurance scheme to protect financial rights of foreign workers and employers. The scheme, which may act as an effective tool to end the justification for introducing the sponsorship system, would cover the damages caused by a foreign worker, payment of unpaid salaries and provision of air tickets.  read more>>>>>> 

Taxing expats under spotlight

FEATURED NEWS ARTICLE:

The long pending issue of imposing income tax on foreigners would come up again for discussion at the Shoura Council on Sunday. The finance committee of the Shoura has recommended carrying out fresh studies on imposing tax on all foreigners working in both public and private sectors in the Kingdom, Al-Riyadh newspaper reported yesterday.

"Zakat is not a tax levied by a government, nor is it a voluntary contribution. It is first and foremost a duty enjoined by God and hence a form of worship."

The new proposal was made by Muhammad Al-Quwaihes, member of the Shoura, who presented it as an additional recommendation attached to the annual report of the Department of Zakat and Income Tax, which had already been discussed by the Shoura.

According to Al-Quwaihes, levying income tax on foreigners would be helpful in further boosting the ongoing Saudization drive. “Foreigners working in the Kingdom transfer about SR100 billion to their countries of origin annually.

The government is neither levying a single riyal in tax or Zakat on their remittance nor do they need to pay any kind of taxes,” he said.

Al-Quwaihes noted that most of the countries in the world impose income tax on individuals who work and earn money in those countries. “It is high time to impose income tax on foreigners. It is also to be noted that foreign workers are beneficiaries of all government support and subsidies given to utility services and products such as water, electricity, wheat, and petroleum products,” he said.

Nearly a decade ago, the Shoura Council reviewed the possibility of imposing taxes on foreign workers but later the proposal was put on the shelf. There are eight million foreigners in the Kingdom, an overwhelming majority of them working in the private sector.

Both Saudi and expatriate employees working in the Kingdom had to pay income tax until it was abolished in 1975. Later, there were moves to reintroduce income tax on foreigners in late 80s. However, in 1988, King Fahd scrapped the plans.

At present, only Saudi citizens and Saudi companies need to pay Zakat of 2.5 percent annually on profits and on the assessable amount for individuals, in addition to a 45 percent tax on foreign investors.

In a bid to attract more foreign investment into the Kingdom, the government slashed, in 2004, the tax rate imposed on foreign investors from 45 to 20 percent.

By RIYADH: ARAB NEWS

Published: Mar 30, 2012 23:56 Updated: Mar 30, 2012 23:56

Expats Top Ten Attributes at Work in Saudi Arabia

The business set up in Saudi Arabia is exceptionally conservative and to make sure successful cross cultural working environment you will need to uphold a proper degree of formality.  

1)  Superiors and those in senior positions are always deferred to and be treated with utmost respect. Treat your co-workers with respect as well.

2)  Do not question the decisions that has been reached inside the workplace or in a round table. Decisions are only made by the highest-ranking employees while in general their subordinates will wait to be told what to do.

3)   When working with people from Saudi Arabia, it’s advisable to bolster the importance of the deadline agreed upon. Saudi educated managers appreciate the importance of executing deadlines and work schedules.

4)   Saudis are tough in negotiating table at work. They believe that everything is open to discussion and should arrived a concrete decision on the matter and repeating your main points will be interpreted that “you’re telling the truth” and “they’re telling lies”. You may need to compromise on a point if someone’s honor is at stake.

5)   Saudi’s sensibilities are common in the working environment, so ensure you don’t offend colleagues by telling them “you are wrong” on a certain decision that were made. Business and friendship go hand in hand in Saudi Arabia.

6)  It is necessary to get to know your associates in the workplace. As an expat it is good to note that the traditional Saudi greeting is “As-Salaam-Alaikum” which means “Peace Be Upon You. The traditional response is “Wa-Alaikum-Salaam” means  “and Peace Be Upon You”. Saudis are very proud of their culture, learning this small phrase is very pleasing to them. 

7)  When meeting, you should shake hands with everyone present, starting with the most senior and proceed anti-clockwise around the room and eye contact is important as this will show honesty and naturalness

8)   Saudi Arabians have a different sense of personal space to expatriate workers and most likely stand close to you while talking or discussing something. The significance is placed on politeness and the building of relationships, so always be considerate and civil.

9)  Saudi’s address each other in the workplace by “Ab” or “Abu”, this means “Father” and usually followed by the name of their son ie: “Abu Sultan” or “Abu Saad” (Father of Saad or Father of Sultan).  Do not address them using “Ab” or “Abu”,  it may cause offense as it is usually only done if you are close personal friends. Saudi traditional greeting will do followed by a sincere smile.   

10)  The Saudis have a relaxed attitude towards timekeeping. Meeting decisions often take time but never show impatience as this will be regarded as a sign of weakness and defeat.

If you have this kind of attributes at work  in Saudi Arabia, surely you will be rewarded with  respect and you will always be treated someone special.  

About the Author:  Manuel Amora is an Overseas Filipino Worker who’s been working in the Kingdom of Saudi Arabia for 18 years. He is now working at King Abdulaziz City for Science and Technology-KACST, a Saudi government institution. He is also an active Filipino Community leader, helping fellow OFWs to be aware of their rights and obligation as expatriate workers in the Kingdom.  

Sponsorship system open to widespread abuse

FEATURED ARTICLE  taken from ARABNEWS

 

The Saudi system of sponsorship, or kafala, is still a topic of heated debate as the unjustified extortion of expatriate employees by their sponsors continues.

The sponsorship system supposedly organizes work contracts, salary, visas, vacation and repatriation.

Overseas Filipino Workers at Construction Site (Photo from Al Arabiya News)

However, there have been many instances of sponsors exploiting and mistreating workers under them by various means. A sponsor might take an employee’s passport and iqama (residence permit) or refuse to pay the wage on time. Instead of providing jobs to expatriate workers under them, some sponsors ask them to find work elsewhere and force them to pay a monthly fee. All these are unlawful in Saudi Arabia, but expatriate workers do not complain to the authorities fearing further mistreatment and deportation.

Statistics issued by the Ministry of Labor confirm that about 9 million expatriates currently live and work in the Kingdom. Many of those expatriates are victims of extortion by their sponsors.

The National Society for Human Rights in Saudi Arabia issued a study to organize the rights of sponsors and workers. The study was issued two years ago but its recommendations remain unimplemented, said Mufleh Al-Qahtani, the NSHR chairman. “Changing the word ‘kafala’ to ‘work contract’ has been applied, but that doesn’t change the way sponsors treat their employees,” he said. “We want to create a governmental body or organization that would manage all the conditions and affairs of expatriates. It would cancel the traditional role of the sponsor and ensure all rights are respected.”  read more>>>>>>> 

Sponsors should have a sense of humanity and a fear of God. “Such feelings would make the relationship more safe and fruitful, then the worker would have no reason to escape. I hope officials will revise our system and try to make it more fair” .  - Ibrahim Natto (Former dean of Student Affairs at King Fahd University of Petroleum and Minerals in Dhahran)

Astillero nomination to POEA Board blocked by Philippine Embassy in Riyadh

(Updated  6:10 PM) 15.03.2012, RIYADH— The fight over the nomination of a new Philippine Overseas Employment Administration (POEA) Board of Trustee, an agency that oversees the government employment program and protects the rights of Filipino migrant workers recently backfires with Philippine Embassy in Riyadh allegedly blocking the confirmation of  Dr. Carlito Astillero in the POEA Board.

It was known from DOLE Secretary Hon. Rosalinda Baldoz herself  that the Philippine Embassy in Riyadh has written to her blocking the appointment  of former OFW Dr. Astillero to the Board.

This is the first time that a true bloodied OFW from Saudi Arabia has been nominated to the post.  The Philippine Consortium on Migration and Development (PHILCOMDEV) nominated the multi awarded and MOFYA 2011 Awardee  Dr. Astillero.

Philippine Consortium on Migration and Development (PHILCOMDEV) is a network of thirty-six (36) non – government and people’s organizations, microfinance institutions, cooperatives, community based organizations, networks, and individuals who are involved on the issue of migration, human rights and development – particularly the empowerment of migrants, overseas Filipinos, their families and communities as social development actors, addressing the social costs of migration, optimizing the benefits of migration, and contributing to people-oriented Philippine development.

Dr. Astillero in a letter addressed to the newly designate Philippine Ambassador Ezzedin Tago said please, investigate this matter and let the truth come out. Although I have no interest anymore to serve as board of Director of POEA, I want to clear my name of the report of your Embassy staff.” Dr. AStillero in his letter lamented that  “If I have not done the best thing for our people in diaspora in Iran, Libya, and in the Kingdom of Saudi Arabia how come that former President Corazon Aquino awarded me Bagong Bayani in 1992 and President Fidel Ramos awarded me Outstanding OCW in 1994, and the same President Ramos again awarded me with Special Presidential Banaag and Sikat Award in 1996 and this not to mention my recent awards after retirement last July 26, 2011 the Model OFW Family of the Year 2011 Award (MOFYA) last December 7, 2011 and the Outstanding Balikbayan Reputation Award (OBR ) in December 9, 2011.”

Dr. Astillero and Engr. Robert Ramos (Two Filcom Leaders in Saudi Arabia nominated for POEA Board)

It was alleged that the former hospital the good doctor was working, the Al Mishari Hospital did wrong doings to its Filipino staff and Dr. Astillero had not done anything to help resolved their cases of complaints by Filipinos working in the said hospital. “The truth of the matter, humbly speaking, and all cases of complaints involving our Filipino staff could not have been solved without my intervention.” The emotional letter says addressed to Ambassador Tago.

Community leaders in Saudi Arabia believed that  the good doctor was framed by some other quarters opposed to the nomination. The nomination was blocked simply because of intrigues and to protect the Embassy staffs, POLO and OWWA’s from further humiliation for their negligence, failure, indifference and insensitiveness  to resolve grievances of OFWs complaints with employers.

“It is sad to note that the blockade would come from the Philippine Embassy in Riyadh”  says Jun Aguilar, head of Philippine based organization Filipino Migrant Workers Group.  

Aguilar, also in a letter addressed to Ambassador Tago said This could had been the first time that a legitimate OFW coming fresh and directly from the ranks be appointed in any government line agencies serving the OFW sector had it not been blocked. The staff/official of our Embassy who is blocking the appointment could have shown some courtesy by contacting the nominee and asked his side on the alleged issue of his engagement with Al-Mishari Hospital.

The Sector was already celebrating upon hearing that Dr Astillero is to be appointed in POEA Board, we thought finally a voice in that very important policy making body would be represented legitimately. I just hope a fair inquiry/investigation be conducted and a report/explanation be provided to the Sector very soon”, Jun Aguilar added. 

The Embassy side had not received any request from the DOLE Secretary for background information or comment on your appointment as POEA BOD member”, Ambassador Ezzedin Tago  said, in an email reply to Dr. Astillero.

Ambassador Tago had just arrived from Manila and back in Riyadh two days ago.

“If my comment or opinion was asked, I believe you already know what I would have saidThe embassy will verify if anyone from the other agencies in Riyadh had received such a request or sent an unsolicited comment or reservation on your appointment.” Ambassador Tago added.

OFW Congress President Alex Veloso Bello said, that he will convene the OFW Congress to address the issue, this is unfair, if the Embassy is behind all these, therefore this is an insult to us seasoned leaders.”

If there was really a letter, verified coming from an embassy staff or its attached agencies and found to be just pure harassment to the nominee, the OFW Congress will write a letter to the Department of Foreign Affairs and fight for the expulsion of the Embassy staff and ask DFA that he or she should not to be posted in any Philippine diplomatic post abroad.

Engr. Robert Ramos, a well respected community leader in Riyadh commented “that seems there was a political reason behind which I’m also victim at one point of time.  Ramos was also nominated to the POEA Board but was deleted on the list due to a mere technicality of requirements.

Former Philippine Ambassador to Saudi Arabia Rafael Seguis, now Department of Foreign Affairs Undersecretary promised to look into the matter and warn the community not to arrive into conclusion based on speculations, if  there was indeed a letter  from the Embassy, then we should look into it, verify and investigate, I am sure he or she will be identified.” Seguis added.

If the letter was sent through email and the sender hide his or her identity as Embassy staff then we can hire computer forensics experts to identify, dig deeper, analyze and trace who are those behind all these” said one Filipino community leader who is expert in IT based in Saudi Arabia.

Dr. Astillero has been endorsed  in the past, as  OWWA  Administrator  by Filipino organization around the globe and now nominated as POEA Board by PHILCOMDEV.  –end- By: BongA

Filipino groups mourn community leaders’ death

By: RUDY ESTIMO JR., ARAB NEWS STAFF

Published: Mar 13, 2012 00:06 Updated: Mar 13, 2012 00:06

Various Filipino groups in the Saudi capital expressed sadness yesterday over the death of two former community leaders who had rendered various services to compatriots while working in the Kingdom.

“The passing of Florencio Coronado and Tony Apolto, former president and vice president of the Manggagawang Kapit-Bisig (MKB) respectively, is a great loss to the Filipino community in Riyadh,” OFW Congress President Alex Bello told Arab News.

Ka Flor (Florencio Coronado) Founding President-Mangagawang Kapit Bisig (MKB-RUH)

Coronado died on Friday morning at a local hospital due to cardiac arrest. He had been undergoing kidney dialysis for the last six years with the help of a Saudi foundation. Apolto died of a heart attack in the Philippines.

Bong Amora, OFW Congress secretary-general, also lamented “the loss of two selfless” community leaders. “Florencio was always there when the community needed help. Tony, on the other hand, was a good follower as well as a good leader,” he said.

Robert Ramos, president of the Samahan ng mga Manggagawang Filipino ng Al Babtain (SAMAFIL), also expressed sadness. “Their untimely death makes the heart sink. They were a tower of strength as far as helping the Filipino community is concerned. They were always around to lend a helping hand.”

Resty Sibug of the Philippine Society of Mechanical Engineers in the Central Region in Saudi Arabia (PSME-CRSA) expressed sadness too.

“It goes without saying that we, at the PSME-CRSA, are saddened by the passing of two erstwhile indefatigable community workers,” he said.

Angel Pantoja, former community leader in Riyadh who is now based in Manila, said in an email that he was greatly saddened by the loss of real community workers. “Vivian, Florencio’s wife, called me to relay the message that he had passed away in Riyadh,” Pantoja wrote in an email.

Ka Tony Apolto (right) w/ Jhun Aguilar (Filipino Migrant Workers Group-FMW) & Alex Bello (OFW Congress) during PPP Meeting. (Ka Tony was one of the original founding members of Partidong Pandaigdigang Pilipino)

Bello said when Coronado was still healthy, he was always around to help in community activities organized by the Philippine Embassy.

“He and his wife Vivian were indeed active in community activities. Vivian used to lead in singing the Philippine national anthem when the occasion called for it,” he said.

Apolto, on the other hand, died in his home province of Tarlac, north of Manila, where he was vacationing. “Early this year, he went home, but he had a heart attack before he could come back,” the OFW Congress president said.

Bello also called on all OFWs to renew their membership with the Overseas Workers Welfare Administration (OWWA) when the time is due to ensure that they could avail of benefits if needed.

“I am calling on all OFWs to make sure their OWWA membership is valid. The daughter of Coronado, Jeane C. Catipon, referred her father’s case to the OWWA in Riyadh but it was found out that his membership had expired,” he said.

PhilEmb Advisory: Passport unclaimed for 6 months to be cancelled

 Press Release 041-2012 (12 March 2012) 

PASSPORTS UNCLAIMED FOR SIX MONTHS TO BE CANCELLED

The Philippine Embassy in Riyadh reminds all Filipinos who applied for passports over six months ago and not claimed it yet to do so as soon as possible. 

The Philippine Embassy in Riyadh and all Philippine Foreign Service missions have been reminded to strictly implement Department Order No. 37-03 dated 23 September 2003 requiring the cancellation of passports unclaimed after six months from issuance.

Applicants who fail to claim the new passport within the six (6) period have to re-apply and pay the prescribed passport fees.

The Philippine Embassy in Riyadh shall cancel all Philippine passports unclaimed by the applicants or their authorized representatives after six (6) months from the date of issuance.

Filipinos are reminded to inform their respective employers accordingly to avoid unnecessary inconveniences.

Filipinos who have not claimed their passports issued in the past six months or more may call 01-482-3818 or send an email to consular@philembassy-riyadh.org. -end-

Beware of fake recruitment e-mails

Beware of fake recruitment e-mails

You are selected!

The Philippine Overseas Employment Administration advises jobseekers to think twice before replying to e-mails with the said subject especially those coming from “international companies” they have never heard of before.

POEA Chief Cacdac

Administrator Hans Leo Cacdac said an e-mail congratulating an applicant for being selected for a specific job he or she did not apply for reeks of a recruitment scam.

“When you post your resume to a job search site, you are opening your personal data to potential employers, and even scammers, so be careful,” Cacdac added.

The administrator said these e-mails promise employment in hospitals and caregiving establishments in Canada and the U.S.A. at almost no cost to the applicant but they have to pay for medical tests and interview coaching in the philippines.

Cacdac cited the case of a certain Fraser Health which recruits nurses and caregivers for supposed employment in Canada.

Upon verification, the real Fraser Health in Canada denied the e-mail came from them. The fake company uses free e-mail accounts at hushmail.com whereas the true Fraser Health uses their domain name fraserhealth.ca.

Cacdac said the come-ons offered by the fake company could be hard to refuse for some Filipino workers looking for overseas jobs. The e-mail said applicants would not be charged any placement or processing fee, and the cost of air fare And work visa would be paid by the employer. But the catch is they have to pay Php3,750.00 for “Canadian Embassy Interview Coaching” and medical tests costing up to Php5,000.00.

“Because the company is not real, the victims are unnecessarily spending hardearned money in pursuit of non-existent jobs,” Cacdac said.

Cacdac urges job applicants who received such recruitment e-mails to forward the same to info@poea.gov.ph for verification and proper action by the POEA and police authorities. ### (March 9, 2012)

New recruitment firms set to start operations

TODAY’S FEATURED ARTICLE:

The 13 recruitment companies that were given preliminary licenses will commence operations soon and will rent foreign workers and maids to interested Saudi and foreign clients at monthly payments ranging between SR1,000 and SR1,200, local daily Al-Madinah reported yesterday. It was quoting an official source at the Labor Ministry.

The source, however, said the monthly salaries would be fixed according to the theory of supply and the cost of recruitment.

“The companies will enable citizens and expatriates to hire foreign manpower with various professions except the specialized jobs, such as doctors and engineers, without incurring any additional costs like the Iqama and visa fees,” he said.

 The source explained the companies would be committed to provide suitable and safe accommodation for the foreign manpower under their sponsorship.

He said any of the recruitment companies should consist of at least five recruitment offices and added that each company would be given 1,000 work visas for each of its offices.

“The establishment of the companies was aimed at organizing the import of qualified manpower and to provide professional services,” he said.

Meanwhile, director of information and public relations Hattab bin Saleh Al-Anzi, who is the ministry’s official spokesman, said the ministry would hold workshops and meetings with representatives of the companies and the National Recruitment Committee of the Saudi Council of Chambers to discuss problems facing the establishment of the companies and other issues, including provision of accommodation for foreign manpower.

He said the paid-up capital of each company wishing to import workers and housemaids should not be less than SR50 million, while that of companies wishing to recruit foreign manpower for the public sector should not be less than SR100 million.

The spokesman explained that the companies, covering various regions of the Kingdom, should commence activities a year after obtaining the final licenses.

By JEDDAH: ARAB NEWS, Published: Mar 11, 2012 23:17  : Updated: Mar 11, 2012 23:17

Ma’asalama Joe!

A week ago I posted here in our blog a news item published in Saudi Gazette titled “Filipino Community Leader  in EP Honored” written by seasoned Filipino news correspondent Mr. Joe Avancena.  Today, in return, the whole Filipino community in Saudi Arabia honored him for making us proud as Filipinos in this country.  

Joe Avancena in heartbreaking news died apparently of heart attack, Thursday, March 8 at 5:20 PM at age 74.

He worked in Saudi Gazette, a leading English newspaper in the Kingdom for over 30 years, at first as a reporter and later as Bureau Chief.  He left Saudi Gazzette three years ago and took up a job as Editor at the Federation of GCC Chamber of Commerce and Industry in Dammam and kept on writing news articles with Saudi Gazette.

He earned his Master of Business Management/MBA degree at Philippine Christian University. He has spent much of his storied career in chronicling Filipino community events and OFW issues and concerns.

Joe witness the social and economic transformation of Saudi Arabia with deep understanding of their culture and history, the reason why he prefer to stay with his wife in the Kingdom rather going back home for good.  His widow,  Ana  is currently working as Administrative Assistant of Philippine Overseas Labor Office (POLO)  in Al Khobar. They have two sons and five grandchildren.

The Filipino Community in the Kingdom of Saudi Arabia, will miss Joe Avancena and our thoughts and prayers are with his family; Ma’asalama Joe!  

Labor disputes and unreasonable delay

FEATURED ARTICLE:

By QAISAR HAMED METAWEA ( Opinion on ARAB NEWS )

One of the aims of enacting labor laws is to protect the rights of employees from any abuse of their employers. Additionally, forming a robust system to resolve disputes is a cornerstone to protecting the rights of employees. However, having a fragile system to resolve disputes may, in actual fact, hinder protecting the rights of employees.

3,000 workers demanding their rights (click image)

Saudi Arabia has endeavored to protect the rights of employees as well as employers. The new Labor Law of Saudi Arabia, which was issued by the Royal Decree No. M/51 dated Sept. 27, 2005, was enacted to regulate labor matters as well as disputes. Nonetheless, Saudi Arabia has a serious dilemma with respect to resolving labor disputes in a timely manner. As such, disputes may take up to two years or more to be resolved for no justified reasons.

In most cases, the dispute process initially commences by an employee filing a complaint before the labor office. The labor office then attempts to resolve the dispute amicably between both parties. However, in the event of an unreachable agreement, the dispute will then be referred by the labor office to the Preliminary Commission for Settlement of Labor Disputes. When the Preliminary Commission issues its decision, it is deemed preliminary and not final in most of the cases and may be appealed before the High Commission for Settlement of Labor Disputes by one or both parties within thirty days from the date of utterance of the decision issued in the presence of the parties or from the date of notification of the decision in other cases.

However, if the decision of the Preliminary Commission is not appealed by one or both parties within the aforesaid period, the decision is considered final and enforceable. Nonetheless, if the decision of the Preliminary Commission is appealed before the High Commission, then the High Commission will only review the part(s) of the decision that one or both parties are appealing and issue its decision accordingly.

The duration of the above process could take up to two years or more; which equates to an absolute nightmare for employees, in particular expatriates.

To read more >>>>>>>>  

Filipino community leader in EP honored

AL-KHOBAR — Engineer Ernesto N. Mapanao, a longtime Filipino worker in the Eastern Province (EP), was honored here last Friday for supporting distressed compatriots and working with various Filipino community organizations throughout the years.

Mapanao received a plaque of recognition from the Overseas Filipino Workers Congress in EP (OFWC-EP), a pioneering Filipino association established 12 years ago in the Kingdom.

Photo by:Joe Avancena (SG)

The simple ceremony was held at the resident of Mary Jane Tupas, president of OFWC and the director of nursing of Mohamad Dosary Hospital.

Mapanao is leaving to join his family in Canada after some 20 years working as an engineer for leading Saudi companies in the oil and gas industries. Active in community affairs, he had served as the Third President of the Overseas Filipino Workers Congress (OFWC) from 2005- 2007.

Leading EP community leaders attended the event, including Dr. Gener Benter, Dr. Peter Marpa, Engr. Bong Dionisio, Martin Valenzuela, Chito Arcilla, Mulong Odsinada, George Palencia, Lito Tomas, Jun Mones, Charlie Rapanut, Ed Saballa and Orly Arcega.

taken from: Saudi Gazette-MARHABA 3 March 2012

Simple EDSA Day at PhilEmb-Ruh

Flag Raising Ceremony at Phil. Embassy Liwasang Bonifacio Ground

 

25.02.2012 RIYADH – The Philippine Embassy in Riyadh, Kingdom of Saudi Arabia commemorated the 26th Anniversary of the EDSA People Power Revolution of 1986 in a simple ceremony attended by Embassy, POLO/OWWA officials and the members of the Filipino community.  

The activities started with a flag raising ceremony  followed by a communal rendition of the song Bayan Ko.  Breakfast were served at the official residence of Philippine Ambassador  H.E. Ezzedin Tago. – end-

Advisory on Use of Social Media

Press Release 031-2012 21 ( February 2012 ) 

Advisory on Use of Social Media

The Philippine Embassy in Riyadh recently received an electronic mail commenting on contents of social media sites, particularly photos uploaded by a Filipino community organization of a female “model” based in the Kingdom wearing a transparent night outfit. The photo drew negative reactions from locals, and requested the Embassy to remind those concerned to refrain from uploading such material online, as these photos are inconsistent with local customs and cultural sensitivities.

The Philippine Embassy in Riyadh urges all Filipinos in the Kingdom to be prudent and careful on the nature of photos and videos that they upload on social media sites.

The Embassy is issuing this Advisory to avoid unnecessary actions that might be taken against any group or individual by local authorities. -end-

Anxiety to repay biz loans may weaken DOLE program

(FEATURE ARTICLE)

Anxiety to repay biz loans may weaken DOLE program

by: JEREMAIAH M. OPINIANO (OFW Journalism Consortium)

PASAY CITY—A MONTHS-OLD program handing out business loans to returning migrant workers does not require collateral from borrowers, and a finance expert thinks borrowers might encounter uneasiness to repay these loans.

The P2 billion Reintegration Fund for returning overseas Filipino workers (OFWs) hands out loans ranging from P200,000 to P2 million to existing migrant entrepreneurs. But microfinance specialist Jun Perez is worried that required documents returning OFWs must present and frequently show might give borrowers hesitation to repay.

The context here, said the managing director of the microfinance network Seed Finance Corp., is the size of the enterprises vis-à-vis returning OFWs’ abilities to repay.

The loan range implies that borrowers run small and medium enterprises (SMEs). Meanwhile, lenders Land Bank of the Philippines (LandBank) and Development Bank of the Philippines (DBP) will require OFW borrowers to show documents related to their enterprises, such as purchase orders and titles to equipment purchased. There’s no collateral required for this loan program.

And this is where Perez’s view comes in about borrowers’ “compunction,” or a person’s strong uneasiness caused by a sense of guilt.

Borrowers running SMEs have to title their properties just to secure their loans, though the situation might not be applicable to those running sari-sari (small retail) stores or buy-and-sell ventures. Titling these properties entails costs, in the hope that with the titling the enterprise grows. With such growth the enterprise will now institutionalize having purchase orders (like sari-sari stores) like what usual businesses have.

Then the uneasiness comes in since running the business, producing the titles and business-related documents, and repaying the loans all come into play for the OFW borrower. In such a situation, the scheme of not requiring collateral for these SME loans “might be disadvantageous to the banks (DBP and LBP),” Perez said.

The Reintegration Fund represents the new scheme of the Overseas Workers Welfare Administration (OWWA) and the National Reintegration Center for OFWs (NRCO) to hand out livelihood loans to overseas workers. No less than President Aquino III ordered the Department of Labor and Employment (DOLE) to roll out this program.

But years of previous livelihood programs handled by OWWA, whether handled alone or in collaboration with financial institutions such as the National Livelihood Development Corp. (NLDC), have histories of high non-repayment rates by OFW borrowers.

 Risks

THE fund has P0.5 billion each from Land Bank and DBP, as well as a guarantee amount of P1 billion from OWWA (the world’s largest migrant welfare fund whose resources come from US$25 membership fees that departing overseas workers pay on a per-contract basis).

Officials of Land Bank and DBP explained during the fund’s launch months ago that both banks will offer an interest rate of only 7.5 percent to each of the loans, payable from two to seven years.

The loans, said Land Bank’s Cressida Mendoza and DBP’s Brillo Reynes during the congress, will make up 80 percent of the total capital needed by the enterprise. There’s also a catch: The businesses to be financed by these loans “must be earning”.

That way, said Mendoza, the situation “will be mutually beneficial to the OFW and to the bank”.

NRCO director Vivian Tornea said in a DOLE release that while there’s no collateral, loan applicants must “guarantee the business enterprise… is viable and profitable —or earning, say, like P10,000 a month”.

Actually, Perez and another development finance expert, Hector de Pedro of the nonprofit Mandato Inc., think both LBP and DBP have proven track records in handing out these reintegration loans.

It’s just that the image of these banks as part of the “government” that worries both Perez and de Pedro. Government-run lending programs “fail,” de Pedro thinks, because “the (word) government is literally synonymous to the word dole out —and the approaches of some agencies do not breed entrepreneurs”.

Thus, Perez said the Reintegration Fund’s implementation “must maintain the discipline and conviction that it must be sustainable, thus must support clearly-viable or potentially viable (enterprises) with community impact”.

Not surprisingly, the Reintegration Fund leaves those OFWs planning to launch start-up enterprises by the wayside—similar to how banks offer loans to existing ventures (but not to start-ups).

The upside of this regulation by DBP and LBP is that government invests its loan resources on proven practices, and that means all figures are (easily) given. Still, new business models coming from OFW enterprise start-ups may not be developed “because there is no support,” said de Pedro.  

Repayment

THE issue of repayment has haunted previous livelihood programs of OWWA, the most recent of which was the loans OWWA and the NRCO issued to OFWs displaced by the global economic crisis in 2009.

Previous OWWA and NRCO programs on reintegration saw OWWA directly providing these services, especially loans (even if OWWA is not a quasi-financial institution). OWWA also has a running Livelihood Development Program for OFWs (LDPO), in coordination with the National Livelihood Development Corporation —though information is not available on the nationally-run loan program’s repayment performance.

During a press conference after the fund’s launch, Labor undersecretary Danilo Cruz told the OFW Journalism Consortium OWWA “will exert extra efforts” to monitor borrowers’ repayment of their loans. Handling loans “is not OWWA’s forte,” Cruz adds, justifying DOLE’s partnership with LandBank and DBP. The partnership sees OWWA’s share to the Reintegration Fund as a guarantee fund in case of non-repayment, Cruz told reporters during a press conference.

LDPO has its own repayment woes. For example, officials of a cooperative in central Philippines that is a conduit of LDPO loans said there is a “high” non-repayment rate among their OFW borrowers. The conduit, the Philippine Cooperative Central Fund Federation, then conducted a financial education and business assessment seminar to some of its borrowers so that the latter are told how to handle the capital they have.

For migrant civil society advocates like Carmelita Nuqui of the Development Action for Women Network (DAWN), the reintegration fund’s regulations are “different from what the government says in public”. Loans for returning migrants, Nuqui says, are available “but why can’t overseas Filipino workers get them right away if these are really for them?”

Policing the religious police in Saudi Arabia

Recently, the Saudi government appointed a new president for the Commission for the Promotion of Virtue and Prevention of Vice who is known to be a more open-minded and progressive thinker.

However, the problem is not so much with the individuals on the commission but with the institution itself and how it operates.

For example, its executive bylaws in many respects are vague and have allowed some of its members to violate basic human rights, including in some cases the physical and verbal abuse of Saudi citizens.

Unfortunately, the commission’s executive bylaws outlined its powers and functions in only a general way, allowing too much license in how its mission was to be achieved.

As a result, this has led to the violations that are committed by the commission’s members. Indeed, the commission seems to exercise its power in excess of proper limitations and in violation of individual freedom. But let me be clear: I am not talking about the ritual of Promotion of Virtue and Prevention of Vice stated in the Qur’an which must be respected and followed by all Muslims, but about the unacceptable activities of the commission’s members.

Those acting on behalf of the commission have repeatedly shown that they do not respect the people’s right of privacy, and they engage in practices that are objectionable such as chasing and assaulting people and forcing segregation between men and women.   read more>>>>>

The Continuing Saga towards OFW Empowerment

American Military personnel work at the site in Dhahran, Saudi Arabia where a warehouse was hit by an Iraqi Scud missile during the 1st Gulf War.

Year 1993 when I arrived in Jeddah, KSA and got involved in community service and at that time I can smell the remnant of the 1st Gulf War. During the first 4 years as an OFW I met some renowned Filcom Leaders based in Jeddah, to name a few like, Gerry Cuares, Ernie Geslani, Gil Manese, Gerry Sano, Rudy Dianalan, Omar Chip Tiozon, Jimmy Leonida, Manny Arroyo, Rashid Fabricante, Mel Dazo, Fred Castolome, Ernie Hernandez, Emman Bernaldez, Francis Oca and many more.

I was just an observer whenever a meeting was called; at that time I was a proud member of Boholano Community in Jeddah (BC-J), the Bohol Leyte OFW Cooperative (BLOC), and the Overseas Filipino Workers Cooperative Council (OFWCC).  read more>>>>>>>

 

By ofwempowerment Posted in Uncategorized