OFWs Involvement in the Formation of an OFWBANK sign now

To Our Esteemed Leaders and Government Officials:

Subject: On the transfer of OWWA funds to the Philippine Postal Bank

The overseas Filipino workers (OFWs) have long acknowledged the need for a bank that specifically caters to OFWs' needs.

To this end OFWs around the globe took initial steps a few years ago to form one. At this writing, the OFW-initiated OFWBANK through its parent foundation with offices in Manila is expecting its final documents from the Philippines Securities & Exchange Commission.

It should be noted that H. E., Patricia Santo Tomas, Secretary, Department of Labor and Employment, the governmental branch under which the Overseas Worker Welfare Administration (OWWA) operates, is fully aware of this particular bank project. The OFWs assumed that the good Secretary was fully supportive of this endeavor.

Instead, on March 31, 2006, newspapers trumpeted that "President Gloria Macapagal Arroyo disclosed yesterday that the Cabinet has approved the conversion of the Philippine Postal Bank into the Overseas Filipino Workers Bank to give OFWs an alternative channel for remitting their dollar earnings to their families back home at lower services fees."

It went on: "As approved during the Cabinet meeting Tuesday upon recommendation of Labor Secretary Patricia Sto. Tomas, the Overseas Workers Welfare Administration (OWWA) will infuse a P1 billion equity into the Postal Bank, which is now owned by the Philippine Postal Corp."

At no time during the preparatory period to this press release did Secretary Santo Tomas or the office of the President of the Philippines extend an invitation to the people who own the funds that they have so generously offered to infuse into the PPB, to become involved in the decision-making: the OFWs.

On February 2, 2003, "A CALL TO ACTION FOR OWWA TRANSPARENCY and RESTRUCTURING" from The Overseas Filipinos was sent to the Office of the President, members of the house of representatives and the senate, Secretary Santo Tomas and officers of the OWWA.

On December 8, 2003: "An Open Letter to Hon. Virgilio Angelo, OWWA Administrator, and Hon. Patricia A. Sto. Tomas, OWWA Board Chairperson and DOLE Secretary regarding the Call to Action for OWWA Transparency and Restructuring as released on 2 February 2003."

Both letters are reproduced below.* Names of 1,407 original signatories are available on request.

Approximately three years later the OFWs are asking for the same things from OWWA: restructuring, good governance, transparency, and accountability.

Three long years later we are still asking for OWWA to make public its annual year-end report and financial highlights for the last years. It is noted at this point that its website is "under construction." The contentious issues enumerated in those letters still demand to be addressed.

OFWs are of the opinion that OWWA funds should be administered by representatives of the OFW organizations. Movement of OWWA funds should not be at the whim of the administration's cabinet, who frequently refer to the Filipino Diaspora as "the modern-day heroes" but does not give these same "heroes" the courtesy of any input in the decision-making process regarding their funds.

The proposed OFWBank initiated by OFWs a few year ago will be fully-owned by the OFWs. The projected profits will be owned by the bank's owners/members. Administration of its funds regarding investments and projects will be decided by OFWs.

The government's press release took the altruistic stand that the administration is making this move for the good of the OFWs. The OFWs, therefore, expect the government to support and facilitate the finalization of the OFW-initiated OFWBank -rather than a renamed PPB- so that it can start operation with a clean slate as soon as possible.

If the administration, however, would rather see the projected profits go into the government's many pockets, then it is understandable that it would railroad the re-routing of funds to a bank that it can control, and it would effectively belie its very public claim that it is infusing P1Billion of OWWA funds into PPB for the OFWs' benefit.

We, the undersigned, strongly protest this newest move to exclude the opinion of overseas Filipinos in the disposition of OWWA funds.

We urge the Administration and the Department of Labor & Employment Secretary Patricia Santo Tomas to give the country's "modern-day heroes" long overdue respect by giving them the choice, and a voice in the formation, of their own bank which will bear a name uniquely their own: OFWBANK.

Thank you very much.

Sincerely,
The Overseas Filipinos

FOR GOOD GOVERNANCE, OWWA RESTRUCTURING, TRANSPARENCY & ACCOUNTABILITY!


--------
*December 8, 2003

An Open Letter to Hon. Virgilio Angelo, OWWA Administrator, and
Hon. Patricia A. Sto. Tomas, OWWA Board Chairperson and DOLE Secretary
regarding the Call to Action for OWWA Transparency and Restructuring
as released on 2 February 2003:

Dear Hon. Sec. Sto. Tomas and Hon. Admin. Angelo,

Greetings!

On February 2, 2003, the "Call to Action for OWWA Transparency and
Restructuring" statement, which was the culmination of discussions in the
various OFW e-groups that started months earlier, was released along with
the names of its 1,433 supporters around the globe. The statement was sent
to your offices via e mail, with copies to President Gloria Macapagal-Arroyo
in Malacaсang, the POEA, Senators, House Representatives, the Philippine
Embassy and POLO-OWWA in Riyadh, columnists and reporters of major
newspapers, and various e-groups.

We were disheartened, to say the least, that we never received a specific
reply to this statement from your offices and the other government officials
and legislators (except from Hon. Senator Aquilino Pimentel Jr.). But we
will not continue to be discouraged. We hope that this time we will be
heard.

We have reviewed the current OWWA website and we are pleased to find the
OWWA Year-End Report and Financial Highlights for 2002. However, the reports
still come short of our request for a more comprehensive and fully audited
financial and performance statements not only for 2002 but also for previous
years.

The open letter of President Gloria Macapagal-Arroyo to OFWs, dated 10
January 2003, which was distributed during a community meeting at the
Philippine Embassy in Riyadh last February, also states that the President
has "instructed Administrator Virgilio Angelo, the new OWWA Administrator,
to publish the financial statement of assets and liabilities of OWWA for the
last two years (underscoring supplied)."

Going as far back as 1983, even the controversial issue of the P200-million
investment in Landoil Resources and Greater Manila Land Corporation remains
unresolved - a sore reminder that must find closure.

We are also interested to know if the lopsided priorities in the
expenditures for direct benefits versus operating costs have already been
rectified during the first half of this year, 2003. We hope that financial
and management reports for the previous years are forthcoming and we urge
that future ones be posted at least biennially.

Since there are so many other OFW-related issues that we wish to discuss
with your good office, including the demands listed in the Call to Action
statement, we would like to propose a regular dialogue that is similar but
not limited to the Consultative Council on OFWs.

We believe that an open networking with the many OFW organizations around
the world and home-based NGOs and other groups thru a series of informal and
formal discussions will help in reaching a consensus on contentious issues
such as the mandatory payment of the OWWA membership fee. We believe that
this is also one step in democratizing the status of the OWWA, which is a
"self-sustaining government agency" that is supported wholly by the
membership fees of OFWs.

To help us further appreciate and study the achievements of OWWA in the past
year, we also would like to request that the following be posted in the OWWA
website: Report on First National Conference on OFW Reintegration, April
2002; and the concept papers on Provident Fund for OFWs, Reformulated
Community Organizing Program, OWWA PDOS, Education Support Assistance
Program, and the Comprehensive OFW Reintegration Program.

We also would like to state our full support to the Scrap OWWA Omnibus
Policies (ScOOP) Coalition, groups and other individuals whose demands, such
as the immediate scrapping of the Omnibus Policies; transparency,
accountability, public management, and financial audit of the OWWA fund;
more OFW representation in the OWWA board; transparent, participatory and
democratic selection of OWWA board members; are in agreement with our Call
to Action statement.

We await your prompt and favorable response.

Thank you very much.

sincerely yours,
TASK FORCE FOR
CALL TO ACTION FOR OWWA TRANSPARENCY and RESTRUCTURING

----- Original Message -----
From: Alfredo J. Ganapin
To: Commission on Filipinos Overseas ; Catherine Paredes Maceda
Sent: Monday, February 03, 2003 1:36 AM
Subject: Fw: A CALL TO ACTION FOR OWWA TRANSPARENCY and RESTRUCTURING

----- Original Message -----
From: Overseas Filipino Workers
Sent: Monday, February 03, 2003 1:11 AM
Subject: A CALL TO ACTION FOR OWWA TRANSPARENCY and RESTRUCTURING

----- Original Message -----
From: Overseas Filipino Workers
Subject: A CALL TO ACTION FOR OWWA TRANSPARENCY and RESTRUCTURING

*February 2, 2003

To Our Esteemed Leaders and Government Officials:

Greetings! We would like to take this opportunity to sincerely thank
everyone who has championed the cause of the Absentee Voting Bill (AVB) and
worked diligently towards its eventual passage. Maraming maraming salamat po
sa inyong lahat!

We pray that the AVB will pave the way for the further empowerment of
overseas Filipinos in choosing leaders who will be truly committed to the
cause of Good Governance, Transparency and Accountability.

Just as you continue to hear our grievances and work towards their
resolution, as duty vested in your office, we are seeking your support in
studying and uplifting the plight of Overseas Filipino Workers (OFW) and, in
particular, in evaluating the functions, services and finances of the
Overseas Workers Welfare Administration (OWWA) and other related agencies.

Two months ago, we started the initially egroups-based Call to Action for
OWWA Transparency and Restructuring. We now humbly present to you our
statement and demands and the initial list of supporters.

We actively monitor any developments related to the petition. On Jan. 6,
news came out from the Bulletin Today that "the controversial investments of
the Overseas Workers Welfare Administration (OWWA) on the Smokey Mountain
Development and Reclamation Project (SMPPCs) has finally been settled...The
Home Guarantee Corporation (HGC) agreed to pay OWWA P500 million in cash in
two tranches on Jan. 6 and 31, 2003, while the rest of the balance of the
P1.07 billion settlement will be in the form of Debenture Bonds."

While we welcome this development with guarded optimism, the P200 million
invested in 1983 to Landoil Resources and Greater Manila Land Corporation
(GMLC) has not yet been repaid. Among our demands is for the OWWA to publish
regular audited accounting reports in its website.

We challenge your good office to take time to study our pleas and work for
their fruition.

We will continue the campaign as long as necessary.

Thank you for your time and support.

very sincerely yours,
Overseas Filipino Workers

A CALL TO ACTION FOR OWWA TRANSPARENCY and RESTRUCTURING

WE, the Overseas Filipino Workers (OFW) and our supporters, demand that the
Overseas Workers and Welfare Administration (OWWA) submit itself to a full
public management and accounting audit without delay, not only for
collections and expenditures for year 2001 but also for previous years.

While millions of pesos continue to be collected from vacationing OFWs and
first-timers, six (6) months have already passed and reports on the alleged
misuse of funds have remained unresolved and services in areas of deployment
are affected. A preliminary report on this has already been submitted by the
Secretary of the Department of Labor and Employment (DOLE) on May 23, 2002
to the Presidential Anti-Graft Commission but we have yet to hear of any
results. Senate and House Resolutions have also been introduced to look into
the OWWA fund utilization but these have yet to be followed up.

We strongly believe that the restructuring of OWWA fund management and
utilization towards improvement of services and greater OFW and civil
society representation should be considered as urgent legislative agenda.
The issue of whether the $25 OWWA membership fee is mandatory or voluntary
and whether it is a trust fund or not should also be addressed.

We also urge our legislators to transcend political affiliations and
loyalties and pursue with diligence and committment the Senate and House
Resolutions on the OWWA fund.*

The controversial investments, going as far back as 1983 with the
P200-million advanced to Landoil Resources (majority owned by Speaker Jose
de Venecia) and Greater Manila Land Corporation, were done without the
approval of the board of trustees. More recently, in 1995, some P500 million
in investments were made to the Smokey Mountain Reclamation and Development
Project (SMRDP) certificates. Accumulated interest and principal of these
investments reportedly remain uncollected to this date.

Considering the huge amounts involved in the Landoil and SMRDP investments,
we find former Administrators Wilhelm Soriano and David Corpin's decisions
without the board's approval, while invoking Memorandum of Instruction 008
issued in 1986 to cover such actions, as the height of imprudence.

Then OWWA Administrator Wilhelm Soriano said that he has the "binding
authority as to where to invest the OWWA Fund, including how and how much."
http://www.inq7.net/nwsbrk/2002/jun/10/nbk_3-1.htm But the same article
pointed out that "the lack of due diligence in evaluating investments is
glaring. The superficial evaluation conducted by OWWA's Acquired Assets and
Investments Unit for the SMRDP investment was not an isolated case...the
P500 million invested in SMRDP constituted a whopping 45 percent of the
OWWA's capital funds at the time, something that would have raised eyebrows
among professional fund managers."

The DOLE Committee report argued that the Presidential Decrees 1694 and 1809
are "the clear mandate that financial transactions as far as the workers
money is concerned, were subject to the rules and regulations of the Board
of Trustees." PD 1809, issued in 1981, provides that all "transactions in
the Welfund (workers welfare fund) shall be subject to such rules and
regulations as may be formulated by its Board of Trustees."

The report also said that the "MOI 008, issued by Administrator Salvador
Bigay, mentions that the Capital Fund shall be administered and controlled
through the Office of the Administrator. Even this MOI however does not
deviate from what the PDs require as the administration and control is only
through, and not by, the Office of the Administrator, and the investment
shall still be within the guidelines set by the management."
http://www.manilatimes.net/national/2002/may/25/top_stories/20020525top2.htm
l

"As authorized under PD 1809 which amended PD 1694, the OWWA board, as a
matter of policy, requires that Soriano should utilize not more than 50
percent of the agency's investment income of the previous year provided that
a forced savings equivalent to 20 percent is imposed. On programs budget,
the law has a restrictive provision where Soriano is not allowed to use more
than 60 percent of the funds from the workers' contribution and membership
fees. Who allowed him to utilize up to 134 percent of the funds for
operations could hardly be accuser Sto. Tomas. What makes Malacaсang
hesitant to open up the big can of worms is a valid administrative question
the Labor chief should pursue."
http://www.tribune.net.ph/20020520/commentary/20020520.com_focus.html

A study of OWWA's expenses also shows its lopsided priorities. "From 1998 to
2001, OWWA's expenses averaged 86 percent of its total income for the
previous year. In 1998 and 2002, expenses actually exceeded the previous
year's income. The 2001 figures show P636, 588,140 in expenditures. Of this
total, only P143,596,722, or 22.5 percent, was spent on benefits for OWWA
contributors. The balance went to operating expenses, mostly salaries. Of
the proposed P883 million budget for 2002, only P287 million, or 32.5
percent, will go to benefits, while the balance will be used for
operations."
http://www.inq7.net/nwsbrk/2002/jun/10/nbk_3-1.htm

Also, during a campaign by the United Filipinos in Hong Kong in 1996, they
presented a pie chart which showed that only 11\% of the $25 membership fee
actually goes to direct benefits for OFWs such as insurance claims, burial
assistance, disability, welfare assistance, etc., while the rest of the
amount goes to the overseas allowances of OWWA and DOLE in various
countries, service delivery costs, rentals of office space, etc. [From OWWA
Pie Chart, United Filipinos (UNIFIL) in Hong Kong; and the Migrant's Focus
Magazine: Issue #2 "A Feast in Government Fees"; provided by the Asia
Pacific Mission for Migrant Filipinos]

In the light of the aforementioned, we therefore demand the following:

1. Immediately implement the US$25 as voluntary OWWA membership fee.

The original vision that the OWWA contribution must come from employers, as
supposedly mandated by law, is already lost, especially for the Balik
Manggagawa or returning Overseas Filipino Workers (OFWs) with renewed
contracts. Although there are agencies that make sure that this fee is
shouldered by employers and will not be deducted from the workers, this is
usually only true for new OFWs. Compliance is difficult, if not totally
non-existent, from employers of returning OFWs.

2. Resume the investigations on the alleged OWWA fund mess, specifically on
the investments made in Landoil and SMRDP, and perform a full public
management and accounting audit. If it has nothing to hide from the past,
then OWWA should submit itself to a full and unhampered investigation.
Appropriate administrative sanctions or charges should be placed on
officials who erred.

3. Expose those who may wish to obstruct any investigation and charge them
appropriately in courts.

4. Release the official audited reports on OWWA fund collections and
expenditures for 2001 and previous years and publish these in an official
website.

5. Restructure the OWWA and study how the welfare fund could be transformed
for better services to members.

6. Review the OWWA administrative guidelines and provide a reasonable and
specific cap on expenditures. Increase funding for direct benefits to
members, which may come in the form of a provident fund.

7. Evaluate the history and functions of the different agencies that are
involved in the welfare and protection of OFWs and determine if they are
really responsive to the needs of the Filipino workers.

8. Craft laws that will provide greater OFW and civil society representation
in policy-making bodies related to OFW concerns. In particular, establish a
clear, democratic and transparent criteria for the selection of the OWWA
board and administrator, with more OFW representation in the board.

We have not forgotten the OFWs and their families who have benefited from
OWWA assistance, such as for accidents and burials, but any assistance that
OWWA has rendered in the past or any of its achievements should not be used
to gloss over any irregularities in rendering of other services or the
misuse of the funds.

We appeal to our kababayan who are employed in OWWA to understand our
demands as not a personal attack on their livelihood and future but a
necessary step to improve the services to OFW members, especially those who
are in distress, and to protect from misuse the resources that we have
contributed for OWWA's existence in the first place.

We look forward to the new OWWA Administrator Virgilio Angelo to rise to the
challenge of addressing the above-mentioned demands.

We also urge the government to review its mandate as expressed in Article V,
Section 8 of the Migrant Workers and Overseas Filipinos Act of 1995
(RA8042), that "All fees for services being charged by any government office
on migrant workers as of June 7, 1995 shall not be increased. All other
services rendered by the DOLE and other government agencies in connection
with the recruitment, introduction and placement of any assistance to
migrant workers shall be rendered free."

The paramount role of the state is to ensure protection and the well being
of its citizens, wherever they are.

We are calling on all concerned kababayan, egroups, NGOs, government
officials and legislators to act together for the welfare of all OFWs around
the world.

THE TIME TO ACT TOGETHER IS NOW!


* Senate Resolutions:

Senate Resolution No. 59, introduced by Senator Ramon MAGSAYSAY JR., 23 July
2001, entitled:
"RESOLUTION URGING THE SENATE COMMITTEE ON LABOR AND EMPLOYMENT, THE
CONGRESSIONAL COMMISSION ON LABOR AND OTHER APPROPRIATE COMMITTEE/S TO
CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ANENT THE BUDGET UTILIZATION OF
THE OVERSEAS WORKERS' WELFARE ADMINISTRATION (OWWA) IN THE LIGHT OF THE
NUMEROUS COMPLAINTS LODGED BY OVERSEAS FILIPINO WORKERS CITING OWWA'S LACK
OF NECESSARY ASSISTANCE AND SLOW MOVING DELIVERY OF SERVICES WITH THE END IN
VIEW OF FORMULATING REMEDIAL MEASURES TO ADDRESS THE ISSUE AND FOR OTHER
PURPOSES"
http://www.senate.gov.ph/bills_res/ibmon/srn-59.htm


Senate Resolution No. 314, introduced by Senator Aquilino Q. Pimentel Jr.,
entitled:
"A RESOLUTION DIRECTING THE SENATE COMMITTEE ON LABOR TO CONDUCT AN
INVESTIGATION IN AID OF LGISLATION REGARDING THE REPORTED MISUSE OF OWWA
FUNDS"
http://www.nenepimentel.org/bills/PSR-314.html


Senate Resolution No. 330, introduced by Senator Edgardo ANGARA, 17
September 2002
"...seeks the creation of a Senate ad hoc committee on government trust
funds. The resolution states that the government trust funds, specially the
reported mismanagement of OWWA's multi-billion-peso trust fund, should be
looked into so that reforms in the handling and management of the funds can
be put in place."
http://www.silangan-shimbun.jp/Sept_update/update5_09182002.htm
http://www.manilatimes.net/national/2002/sept/18/top_stories/20020918top11.h
tml


Selected Sources:

http://www.coa.gov.ph/COA_htm/1999_AAR/GOCCs/OWWA/OWWA99-es.htm
EXECUTIVE SUMMARY OF THE
1999 ANNUAL AUDIT REPORT ON THE
OVERSEAS WORKERS WELFARE ADMINISTRATION

COA report above also published in:
Arab News
9 June 2001
Accountants say OWWA loans, records questionable
by Julie C. Javellana

http://www.cyberdyaryo.com/commentary/c2001_0201_01.htm
Making OWWA work for OFWs
By Jeremaiah M. Opiniano
Institute on Church and Social Issues
01 February 2001

http://www.gulf-news.com/Search/default.asp
Filipino body under fire for funds misuse
By Jay B. Hilotin (Gulf News: 5/7/2002)
07 May 2002

Group behind petition to transfer OWWA exposed
By Romy Tangbawan
Arab News, p. 6
12 May 2002

http://www.manilatimes.net/national/2002/may/15/top_stories/20020515top1.htm
l
P1.2-B OFW funds 'misused'
Labor, OWWA chiefs locked in feud
By Joshua Dancel
15 May 2002

http://www.manilamoods.com/archive/160502.html
Where have the OWWA funds gone?
By Rasheed Abou-Alsamh, Arab News
16 May 2002

http://www.inq7.net/nat/2002/may/18/text/nat_4-1-p.htm
OFWs demand better welfare fund handling
May 18, 2002

http://www.tribune.net.ph/20020520/commentary/20020520.com_focus.html
DISTURBING OWWA FUND MESS
J. C. M. Romero III, Tribune
20 May 2002

http://www.manilatimes.net/national/2002/may/25/top_stories/20020525top2.htm
l
Labor inquiry finds OWWA deal 'irregular'
By Joshua Dancel, Correspondent
25 May 2002, Manila Times

www.owwa.gov.ph/sothe.html
SO THE PUBLIC MAY KNOW
"A clarification on the issues raised against the Overseas Workers Welfare
Fund being administered by OWWA in headlines of the Manila Times and Daily
Tribune on May 15 2002 and subsequent print and broadcast media releases."

http://www.inq7.net/fil/2002/may/27/fil_1-1.htm
FUND MESS PROBE
OWWA chief hits back at Sto. Tomas
By Blanche S. Rivera, Inquirer News Service
27 May 2002

Philippine labor chief sees answer to $25 OWWA question next month
By Roland Blanco, Special to Arab News
27 May 2002

Voluntary renewal of OWWA membership for Filipino expats eyed
By Julie Javellana Santos, Special to Arab News
7 June 2002

http://www.inq7.net/nwsbrk/2002/jun/10/nbk_3-1.htm
Messing with Workers' Money
By Ricky Carandang, Newsbreak President
24 June 2002

http://www.inq7.net/nwsbrk/2002/jun/10/nbk_4-1.htm
Why Secede?
By Aries C. Rufo, Newsbreak Staff writer
24 June 2002

http://www.congress.gov.ph/press/02jul_01.htm
MISMANAGEMENT OF OWWA FUNDS CONFIRMED BY LABOR OFFICIAL
Press Releases
12th Congress, Regular Session No. 2
24 July 2002

http://www.manilamail.com/archive/aug2002/02aug06.htm
Postscript/PhilSTAR/Aug. 6, 2002/Tuesday
FRITTERED OWWA FUNDS
By Federico D. Pascual Jr.

http://www.manilamail.com/archive/aug2002/02aug08.htm
Postscript/PhilSTAR/Aug. 8, 2002/Thursday
OWWA IN THE RED:
SORIANO REACTIONS:
By Federico D. Pascual Jr.

Grievance committee for OFWs to be formed
By Julie C. Javellana, Special to Arab News
17 August 2002

http://www.manilatimes.net/national/2002/sept/18/top_stories/20020918top11.h
tml
Senators seek probe on OWWA trust fund mess
By Karl B. Kaufman, Manila Times
18 September 2002

New OWWA chief vows better services
By Julie Javellana Santos, Special to Arab News
17 November 2002

http://kakammpi.manilasites.com/stories/storyReader$20
Kakammpi Reports 2000-2002

Signature campaign for OWWA restructuring, audit going on
By Raffy B. Osumo, Special to Arab News
5 December 2002

OWWA's controversial investments recovered
By E. T. Suarez, MANILA BULLETIN
06 January 2003

Maturing OWWA funds recovered
By Julie Javellana-Santos, Special to Arab News
08 January 2003

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Hugh KellerBy:
Justice, rights and public orderIn:
Petition target:
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