Proverbial tip of the iceberg

For quite some time now we have taken the cudgels for the multitudes of teachers who now face the prospect of helplessly running to loan sharks for any financial need that come their way while in their pitiful existence of having low pay amid the rising cost of decent living.

The reality of this scenario is not remote if the present leadership of the DECS, the Department of Education, Culture and Sports would stick by their newly conceived and enforced policies directing the small lending institutions, which come to the succor of our teachers in their time of dire financial needs, to restructure their service interest rates to non-viable levels that would eventually spell their closures.

In the past there were attempts by big financial institutions to go into the business of lending to the teachers. In time they all decided to pack up and go after finding out that the amount of paper work and man hours involved are not commensurate to the small interest rate earnings of the enterprise. The investments and efforts can produce higher yields in other ventures.

The small lending institutions took up from where the big time players left off to just live on the morsels of the commerce. The margins may be small but the risks are lessened because of some kind of protection that these private lending firms enjoy as provided for in the General Appropriations Act, where automatic deductions from the teachers’ salaries are made by the DECS to cover these small loans extended to them.

But then, as we mentioned in our previous columns, the present leadership of the DECS has decided to rock the boat that has been sailing steadily providing immediate financial assistance to teachers sans the usual heap of papers and red tape that usually come in tandem with any form of loan.

The boat was first rocked by asking all those involved in the business, regardless of how long and with complete disregard for track record, to a "re-accreditation" process.

Now what may not have only rocked the boat but may have torpedoed it to oblivion was the directive of the DECS obligating all these small lending institutions, prior to being accredited, to re-structure their present service interest rates to lower levels, lower than the same rates that were already proven by the big players to be non-viable, the main reason why they decided not to take on the venture.

Most, if not all of those in the business, regard that this move by the new leadership at the DECS would make the industry keel over. The skeptics are even asking if this is a deliberate move to make everybody else belly up so that a new group could take over?

But many in the industry are now asking that maybe they don’t have to look that far ahead to smell a rat in the middle of these maneuverings?

The process of re-accreditation alone caused the small lending companies from not being able to collect, on present receivables from the DECS under the Automatic Payroll Deduction Scheme, for three months at a whopping average of–listen to this–P1.8 billion per month or a total of P5.4 Billion.

If you remember the case of the good Brother Andrew, when he innocently and unknowingly found himself in a mess out of the gifts that were given to the DECS by a certain bank-it is from these un-remitted collections intended for the lending companies, which in form was a temporary investment or bank placement, that merited all those gifts of brand new SUVs.

So many now are asking what was happening while an average of P1.8 billion, out of the un-remitted collections of the lending institutions, was accumulating for three months? Were there incentives received for these huge monthly investments? If there were, who pocketed them?

We are not accusing. We are just a venue of the questions of many teachers and of many who are in the industry.

It now appears that the issue regarding the eventual collapse of many small lending firms servicing the financial needs of teachers with an unfortunate eventual scenario of having teachers desperately running to the loan sharks is just the tip of the iceberg. It’s a big tip, mind you but how much bigger is the iceberg. The prospects are chilling.

Forewarned is being forearmed

Some unscrupulous persons are using this writer’s name in order to solicit contributions for existing charities except for themselves or some similar rip offs.

Just this week a certain Attorney "something" called some friends of mine from a leading automotive manufacturer company saying that they were friends of mine and that they have some very important documents that they need to pass on to them. They arranged for an appointment and when representatives of my executive friends met these "con men" they said that they were arranging for a surprise party for me and soliciting P5,000 to hold the affair. It was a good thing that before the meeting my friends were able to contact me ahead and I told them that I smell a scam a mile away.

But these guys must really be amateurs. Imagine thinking that some people would really bother about a party for me and contributing for it yet.

Talo, kulang kayo sa research! Hinde ako pinagkakaabalahan!

Although it has come to my knowledge that some other TV hosts and personalities and movie stars have been used unknowingly for such nefarious set ups. Just words of caution –always check it up yourself with the supposed person that’s being named. There are several sets of stories and scenarios that are being used to appeal to your emotions to convince you to part with your money. To begin with, if there was really a need, wouldn’t the person himself or herself come to you personally for such a favor?

Mabuhay!!! Be proud to be a Filipino.

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