Taguig supports Anti ‘5-6’ campaign

intensifies financial literacy program

The Taguig City government is taking additional concrete steps to eliminate “5-6” and similar lending arrangements patronized by government employees which tend to mire them into a cycle of debt.  The city government’s policy direction on this issue is in consonance with the recent pronouncement of the Duterte administration to eliminate “5-6” through micro lending facilities to be set up by the national government.

City Personnel Officer Jeanette Clemente observed that most employees lack skills in handling their daily expenses. They usually overspend and are compelled to borrow money or pawn off their payroll-ATM cards to pay for their living expenses. To kick start the financial literacy program for its employees, the City Government organized last August 2016 a financial wellness seminar conducted by Francisco J. Colayco, author of the book series “Pera Palaguin.” The goal of the seminar was to instill on the employees basic concepts like proper budgeting of their monthly income, investing only on essential needs, and acute awareness of the need to save.

To combat the “sangla ATM” habit, the City Government supported the formation of a private credit cooperative among its employees. A group of employees begun in March 2016 to form the Taguig City Employees Credit Cooperative (TECC). It began giving out small loans of P5,000 starting the last quarter of 2016. The employees’ cooperative offers short-term loans (3, 6, and 9 months) at a minimal interest rate (1 percent per month). The employees’ cooperative do not require the surrender of the borrower’s ATM card, and the loans are paid through automatic salary deduction. The total volume of loans may still be small at this time, but the cooperative hopes to gain more members to increase its capital base and the amount of loans it can offer the city employees.

In addition to this, another alternative facility is made possible by the Memorandum of Agreement (MOA) between the City Government of Taguig and Landbank of the Philippines. The MOA includes the “Landbank Mobile Loan Saver” plan in which permanent employees may allow Landbank to automatically deduct a certain amount from their incomes and deposit them to their savings account. This kind of “forced saving” scheme should help the employees master the skill of creating savings from their income. The employees can also avail of loans which can be paid in 12, 24, or 36 months. The interest rate for this loan is fixed at 10 percent per annum.

The small but concrete steps taken by the City Government appear to be bearing fruits, as the Taguig City Investigation Committee (which is tasked to hear complaints against city employees) has reported that for the last six (6) months of 2016 the number of lenders complaining to the city about some government employees who default on their loans has decreased.

The local government of Taguig plans to continue its employee financial literacy program by providing more seminars about financial wellness in 2017. ###

FILIPINO VERSION:

Taguig mayroong programa kontra ‘5-6’

Ipinatutupad ngayon ng lokal na pamahalaan ng Taguig ang mga konkretong hakbang upang tuluyang mapigilan at maiwasan ang pagtangkilik ng kanilang mga empleyado sa sistema ng pagpapautang na kung tawagin ay ‘5-6’ na dahilan kung bakit nalulubog ang mga ito sa utang. Ang mga hakbanging ito ay bilang pagtugon sa pagnanais ng Duterte administration na wakasan na ang ‘5-6’ sa bansa.

Ayon kay City Personnel Officer Jeanette Clemente, karamihan ng mga empleyado ng gobyerno ay hindi marunong magbadyet ng kanilang pang araw-araw na gastusin na kadalasang nagiging dahilan upang sila ay mangutang ng pera o isanla ang kanilang ATM. Noong nakaraang Agosto, sinimulan ng lokal na pamahalaan ang kanilang programa ukol sa financial literacy sa pagsasagawa ng isang seminar na pinangunahan ni Francisco J. Colayco, akda ng book series na “Pera Palaguin”. Layunin ng nasabing seminar na maturuan ang bawat empleyado ng tamang pagbabadyet ng pera, pamumuhunan sa mga bagay na kinakailangan, at lalo na ang kahalagahan ng pag-iimpok.

Upang labanan ang nakasanayang pagsasanla ng ATM, sinuportahan din ng lokal na pamahalaan ang paglunsad ng isang pribadong kooperatiba na binuo ng isang grupo ng mga empleyado noong Marso 2016 at tinawag na Taguig City Employees Credit Cooperative (TECC). Sinimulan ng kooperatiba ang pagpapautang ng maliliit na halaga gaya ng P5,000 na maaring bayaran ng mga empleyado sa loob ng tatlo, anim, o siyam na buwan at may interes lamang na 1% kada buwan. Ang kagandahan nito ay hindi kinakailangan ng mga empleyado na isanla ang kanilang mga ATM at sa halip ay awtomatikong kinakaltas ang bayad sa kanilang mga sahod. Sa kasalukuyan ay maliit lamang ang halagang kanilang naipagkakaloob ngunit umaasa ang kooperatiba na kasabay ng pagdami ng kanilang mga miyembro ay siya ring pagtaas ang pondo at halaga ng kanilang maipahihiram.

Kaugnay nito, isa pang alternatibong paraan ang Memorandum of Agreement (MOA) sa pagitan ng lokal na pamahalaan ng Taguig at Landbank of the Philippines. Nakapaloob dito ang isang programa na tinatawag na “Landbank Mobile Loan Saver” plan kung saan maaring payagan ng isang regular na empleyado ang Landbank na kaltasan ang kanilang sahod at i-deposit ang nasabing halaga sa kanilang savings account. Layon ng nasabing programa na maturuan ang mga empleyado na mag-impok mula sa kanilang mga kinikita. Nagkakaloob din ng mga loan ang Landbank na may interest rate na 10% kada taon at maaring bayaran sa loob ng 12, 24, at 36 na buwan.

Ikinagalak naman ng Taguig City Investigation Committee (komiteng inatasang imbestigahan ang mga reklamo laban sa mga empleyado ng gobyerno) ang mga hakbang na isinagawa ng lokal na pamahalaan dahil sa nakalipas na anim na buwan ay bumaba na ang mga kasong kanilang natatanggap tungkol sa mga empleyadong inirereklamo ng mga lender dahil sa hindi pagbabayad ng kanilang mga utang.

Upang lalong maitanim sa mga kawani ng pamahalaang lungsod ang financial literacy ay ipagpapatuloy ang pagkakaloob ng maraming seminar ukol sa financial wellness ngayong 2017. ###