Punchline
Legalizing 5-6 lending
By Ermin Garcia Jr.
THE campaign of the Duterte administration contra 5-6 lending is sorely misunderstood. The campaign is not about arresting lenders but simply prodding those that made it their business to register their activity, and pay the taxes due the government.
In fact, by launching its campaign, the government directly acknowledged its failure to address the needs of small business operators and entrepreneurs over the decades. The thriving 5-6 industry was made possible because no government system was established to make credit easily accessible to a cash-strapped family.
The outcry from the patrons of 5-6 lending towards the perceived clampdown of the government was, therefore, understandable. They are being cut off from a system that works for them albeit at high interest rates.
It was for this reason that Sen. Alan Cayetano has proposed a more comprehensive approach to the situation – making credit easily accessible at low interest rates to compete with the 5-6 lenders. To achieve this, he said only the allocation of a fund by government purposely for lending to market vendors, jeepney and tricycle drivers, barbers, etc. can help.
I sat in a meeting that Senator Alan organized two months ago with DTI Sec. Ramon Lopez, officials of Bangko Sentral ng Pilipinas, the Land Bank, and five non-government organizations (NGOs) in attendance. In that meeting, he shared the successful experience of his PTK (Pera-Trabaho-Kita) program in the countryside, essentially providing funds to cooperatives and registered trade associations for micro-lending to their members. The arrangement was simple: the organizations agree to lend the funds provided them to their members at low interest rates while regularly accounting for the funds to his office.
In response, the DTI proposed a P1-billion fund “Pondo para sa Pagbabago at Pag-asenso” to be lent to small businesses with minimal interest. And Congress approved it.
In sum, there is no clampdown or intent to eliminate the 5-6 lenders but to encourage the latter to legalize their operations and be part of the fair competition in the lending industry. Competition means getting a share of the market by making easy credit available through low interest rates.
“There’s no conflict,” stressed Senator Alan, a staunch advocate of Micro, Small, and Medium Enterprises (MSMEs) growth since his successful reelection campaign in 2013.
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MAKE DAGUPENOS ACCOUNTABLE. The sudden closure of the open dumpsite in Dagupan City by virtue of the cease-and-desist order from DENR, should not have surprised Dagupeños. The city has been violating the law on solid wastes disposal and management since the law was passed in year 2000. The closure in effect was long overdue but that it did happen without the awaited solution in place literally caught the residents flatfooted.
Dagupeños simply have to bite the bullet and finally take the law’s requirement to segregate their solid wastes to heart. This is the time when each Dagupeño is counted upon to do his or her share to stave off an impending garbage crisis.
Residents cannot simply and conveniently wait for city hall to provide the solution to the emergency situation. This is the time when and where each Dagupeño should be made accountable for the way he/she dispose of his/her garbage.
‘Tis the time to demonstrate for good citizenship.
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LOW MORALE There’s no doubt that the morale of the men and women of PNP today is at its lowest.
I’m certain that most had hoped that what most were aware of and knew about the dark secrets in the service, would never blow up in their faces. Well, it did and there is no hiding from it.
The crime syndicates in the police force have lorded it over for many years, and continue to this day. The proven criminal tactics of drug protectors, kidnap for ransom, etc. have been passed on from generations of mistahs and generals to the next.
At one time, then Senator Ping Lacson, then as Chief PNP in the late 1990s who was out to reform the organization, spoke of how jueteng effectively corrupted the organization. He said it was the tradition then that all retiring Chief PNPs were gifted with millions in cash as despedida. He stopped the practice, and along with it removed the lounge for the exclusive use of PNP generals’ wives!
The ‘tokhang for ransom’ is nothing new. Working as lookout for drug or crime bosses is endemic. Recovered carnapped vehicles are rarely returned to their owners. Recovered jewelry and cash from robbers are rarely returned to victims. The tactics applied are simple – intimidation and subtle threats of retaliation have been proven to be very effective. No evidence, no witness, no crime!
A young relative recently reported to the police that she was scammed by a pyramiding syndicate. Lo and behold, two days later she got an anonymous call using several prepaid sim cards demanding that she forks over P1-M for reporting to the police or she will be harmed! Obviously, it was the police officer that thought he could take advantage of my young gullible relative. I had to point out to her that the police could not possibly have an idea who and where the scammers are unless he was part of it, or simply enterprising to believe that he can get away with her P1-M. The calls stopped when she stopped responding. She trusted the police but now she fears a possible payback for rejecting the demand. Tsk-tsk.
Then if police officers think it’s ok to pawn their firearms, something must be seriously wrong with the mindset of today’s police officers.
But there is still hope for the many idealistic, professional police officers who sincerely believe that their mission is to serve the public, not themselves. We are seeing them in action, with their little acts of courtesy, their quick responses, and alertness to protect hapless citizens.
They are everywhere and their stories need to be told. Listening to these accounts are like breaths of fresh air and gives hope.
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RUMOR VS. RUMOR. Dagupan City Mayor Belen Fernandez is out of the country attending a seminar/forum on federalism as a system of government organized by the US government. She was one of the city mayors given the privilege to join the study tour.
Now cones again the nasty rumor peddled by her peabrain detractors that the reason she’s in the US is because she was suspended by the Ombudsman. What a silly contrived thought.
But there’s an even more plausible rumor that Belen’s detractors should try to explain. Vice Mayor Brian Lim is the acting mayor in the absence of Mayor Belen who’s on official mission for the national government but he’s nowhere near the city hall to conduct the city’s business. Is it possible that Mr. Lim received a cease and desist order from the court owing to his involvement in the MC Adore sale scandal that led to more than P200 million in losses to the city? Tsk-tsk.
So let’s hear their explanation for a change. Otherwise, stop all this nonsense that detracts people from doing what’s good for the city and themselves.
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