MANILA, Philippines — The Pasig City government on Tuesday stopped collecting the so-called compounded monthly penalties on delinquent payments of beneficiaries of the city’s housing projects.
In a tweet, Pasig Mayor Vico Sotto said he signed a memorandum that stopped the practice of paying the compounded penalties, saying it has no “legal or contractual basis.”
“Maraming nababaon sa utang dahil dito. Ilan taon nang ginagawa pero wala palang basehan na batas o ordinansa,” Sotto said.
[Many people have incurred debts because of compounded penalties. This has been going on for years but it turns out there is no legal basis or an ordinance for this.]
I have just ordered the city's Housing Unit to stop the practice of compounding monthly penalties in our in-city housing sites (including the BLISS housing).
Maraming nababaon sa utang dahil dito. Ilan taon nang ginagawa pero wala palang basehan na batas o ordinansa. pic.twitter.com/9LgViAZlQh
— Vico Sotto (@VicoSotto) October 8, 2019
Under the city government’s contract, beneficiaries and occupants of Pasig City housing projects are only entitled to a flat rate of three percent penalty for every month of delinquency.
In another tweet, Sotto said the Pasig government’s Task Force Pabahay will look into solutions on how to decrease monthly payment of beneficiaries of housing units. /muf