Prov’l legislature wants ban vs ‘sangla atm’ by 4ps members

The Sangguniang Panlalawigan is investigating the practice of “sangla ATM” or pawning of ATM cards by 4Ps beneficiaries.

In an interview with the media, Ferdinand P. Zaballa pushed for the investigation of practices of some 4Ps members pawning their cash cards to lending institutions and fly-by-night lenders.

Asked about the hard data on the practice, he said that his staff are currently gathering data. He also pointed out the prevalence of the practice in the province.

“I really don’t have the data right now. My staff is on process of getting the data. I am concentrated on 3 municipalities. Sa ngayon, kwento-kwento pa lang. But it’s already a rampant practice plaguing the province, not only in the municipalities of Narra, Roxas, El Nido, kung saan-saan. I think the whole (of) Palawan is plagued by this pautang scheme, using the cash cards as collateral,” he said.

(“I really don’t have the data right now. My staff is on process of getting the data. I am concentrated on 3 municipalities. Right now, it’s just hearsay. But it’s already a rampant practice plaguing the province, not only in the municipalities of Narra, Roxas, El Nido, everywhere. I think the entire province is plagued by this lending scheme, using the cash cards as collateral.”)

Zaballa said that the loaning scheme had loan options ranging from P2000 to P6000, with an interest of P5 per day, for every P1000 loaned. For instance, if one loans P3000, the interest rate would be P15/day, or P450/month. For further understanding, here is a table on the interest rate with a P3000 loan.

Daily P15

Monthly P450

Yearly P5,400

Meanwhile, this is the computed interest rate based on percentage.

Daily 0.5%

Monthly 15%

Yearly 180%

He noted that the lending scheme has become lucrative that the lenders themselves force borrowers to borrow from them again as they know that they have a surefire way of earning profits.

“Itong mga nagpapautang, gusting gusto nilang pautangin yung kumbaga, client na nila, pinipilit na nilang umutang yung mga beneficiaries because siguradong babayaraan sila because ang gobyerno, siguradong may pera na ibibigay sa ating mga beneficiaries,” he added.

(“These lenders, they like to lend money to their clients. Sometimes they even force the beneficiaries to borrow because they’re sure that they’ll be paid by the government with the money given to our beneficiaries.”)

Zaballa also addressed the underlying problem of the prevalence of the lending scheme, which is the delay of the release of funds to beneficiaries.

“Yes, medyo delay. Kaya nga with my ordinance, malalaman natin itong…ipapatawag sa kanila, ano ba ‘yung nakikita nating problema. Ngayon, kung delayed, what intervention can the province do para mas ma-update (sic) (mapabilis) itong pagbibigay ng cash cards. That’s one reason siguro, baka ‘yung delay ng pagbibigay ng ating cash cards.

(“Yes, there’s a delay. That’s why with my ordinance, we’ll call on the right people to address the problem. Now, if it’s really delayed, what can the provincial government do to expedite the release of the cash cards. Perhaps that’s one reason, the delay in releasing the cash cards.”)

When asked on the specific lending institutions practicing the scheme, Zaballa declined to give names, while mentioning a method used among legitimate lending institutions.

“Di muna siguro, I won’t be mentioning names, although I already have some documents na talaga, and magaling si lending institution, papapirmahin ka na parang safekeeping. In the guise of safekeeping, kukunin nila ang inyong cash card. So nakakatakot na ‘yun. Kumbaga, pinapaikot na nila ‘yung batas. Bawal ‘yun eh. Pero pipirma siya na ise-safekeep naming ‘yung cash cards. But actually, that’s already pawning. Pawning na ‘yun eh. Pero pinirmahan mo, sine-safekeep mo lang.”

(“I won’t mention any names yet, although I already have some documents here. The lenders are devious too. They will make you sign a contract that makes it look like you’re giving over your card for safekeeping. That’s scary. They’re circumventing the law, and that’s not allowed.”)

Zaballa mentioned that investigations are ongoing. The Sangguniang Panlalawigan will call on the focal person on 4Ps, and the case will be referred to the Committee on Health and Social Services.