COA flags OWWA’s P 234.5-M uncollected loans

MANILA, Philippines — The failure of the Overseas Workers Welfare Administration (OWWA) to collect P234.5 million in unpaid loans from overseas Filipino workers (OFWs) has deprived it of additional funds for other OFWs in need.

In a 2019 report, state auditors called out the OWWA for accumulating P234.5 million in past due loans receivables, which have been outstanding for nine to 29 years.

“The failure to enforce the collection mechanism efficiently and the lack of effective monitoring of receivables … resulted in the accumulation of past due loans receivable totaling P234,384,034.73 … thus depriving the agency of additional funds to finance the programs and projects that will benefit the OFW members,” the Commission on Audit (COA) said.

The COA transmitted its report to OWWA Administrator Hans Leo Cacdac on Sept. 28.

The audit report showed that the outstanding receivables were recorded in the Owwa central office and its regional offices in Metro Manila and Region I.

The past due loans were extended to OFWs such as the Filipino expatriate livelihood support fund for displaced OFWs; calamity loans for disaster-affected OFWs; a special loan for 22 OFWs who lost their jobs in the United Arab Emirates; and special loan assistance for OFWs who had unpaid salaries and benefits after being retrenched from the Mohammad Al Mojil Group and Saudi Oger Ltd. in 2017.

The regional offices were tasked to collect loan payments, such as direct payment, postal money order or through banks, remittance centers, etc.

The COA, however, noted that the receivables of the OWWA central office and regional offices in Metro Manila and Ilocos region “have been outstanding for nine to 29 years.”

The audit body cited the loans receivable of the two regional offices, which combined totaled P82,018,993.07 and were outstanding for three to 13 years.

The COA recommended that the regional directors concerned intensify their collection efforts “by resorting to other remedies like negotiation and compromise settlement to maximize recovery,” or to “resort to legal remedies to enforce collection of accounts in default, if warranted.”