Financing agency Home Development Mutual Fund (HDMF) or Pag-IBIG Fund reassured its members that the Fund’s financial stability would remain strong despite waiving penalties for “delinquent employers” struggling in the pandemic.
In an interview with Pag-IBIG deputy CEO Alexander Aguilar over Daily Tribune’s daily morning show Gising Na! he clarified the request of influential business groups for the condonation of penalties is not yet final but already nodded in principle, as it was approved in the management level, and will be escalated for recommendation to Pag-IBIG’s governing board.
“The request has already passed in the management committee so coming 1st week of October, we will present this to the board of trustees, headed by Department of Human Settlements and Urban Development chairperson, Secretary Eduardo del Rosario, along with other 11 board members, composed of representatives from the Department of Finance, Department of Budget and Management and Department of Labor and Employment, and the private sector. They are the ones who will eventually approve the proposal,” Aguilar said.
Several groups, including Employer’s Confederation of the Philippines (ECOP), Philippine Chamber of Commerce and Industry, and PHILEXPORT, have requested Pag-IBIG to condone their penalties or extend the deadline in settling the liability.
Aguilar maintained the funds of Pag-IBIG remain robust and intact, with the penalty condonation will not have a significant impact on the HDMF’s financial stability.
“The percent of the request was so little for the funds of our member to be affected. To give you an idea, about 62,000 members became delinquent when the pandemic hit, amounting to P4 billion (in delinquent payments). But the penalty to be imposed is roughly P868 million from March 2020 to May 2021. And due to the stability of the funds, along with the help of our employers, the fund will endure the said condonation waiving. Rest assured that all funds under Pag-IBIG are strong and intact,” Aguilar explained.
According to Aguilar, Pag-IBIG generated P16 billion in revenues in 2020 while diligently lending to its members. This year, it has extended its services to 43,000 members with P24 billion in multi-purpose loans and P44 billion in housing.
“What’s important is that the employers and members continue remitting their contributions because, if an employer fails in its remittance, there’s a possibility that a member, who should always keep his status active by contributing at least once in six months, will be disqualified from availing of his benefits,” Aguilar said.
In a previous statement, ECOP president Sergio Ortiz Luis Jr. has already extended its gratitude for the Pag-IBIG fund’s unrelenting support to sustain the economy by promoting the welfare of the entire business community.
“This development will help our already struggling businesses to stay afloat and ensure that the employees will continue to avail of Pag-IBIG benefits,” the Trade group chief emphasized.
with Vernon Velasco