FRONTPAGE
City Hall eyes moratorium on employees loans


City policy makers in the legislative body are recommending that Mayor Felipe Remollo put on the brakes on multi-financed personal loans of some 1000 city hall employees whose payables have now reached a staggering P5million pesos!

Delinquencies and mounting interest are also staggering, it was learned.

Some private financing institutions are now threatening to sue city hall employees-borrowers with insiders as co-makers who in the past had been backing up workers liabilities.

The very lax policy on personal loans repayments which are charged to salaries of employees resulted in the non-payment of loans to the detriment of both the lending company and the employees.

But why is the city government allowing MOA memo agreements with private finance companies for personal loans of employees with salaries as collateral? It is the government which is facilitating the repayment thru salary deductions monthly.

With the apparent uncontrolled borrowings, some employees end up with no-take-home pay because everything goes to loan amortization. Then the workers borrow money again.

Sanggunian personnel chair Kagawad Lani Ramon told the CHRONICLE that she will recommend the stoppage of future personal loans by city hall employees. This private business within government should not be allowed, officials pointed out.

Mayor Remollo is eyeing on a private company which might bail out past due loans and centralize payments to one lending company just to help bail out the workers from their financial burdens.

Remollo said a Manila firm might accept the challenge but city hall next time around, will have to limit its sanctioned lending to the GISIS, Pag-ibig and Phil Health loans only, and no more to other lending companies for the good of the employees.

Those workers who insist in borrowing, will be on their own account and no longer to be deducted from the employees’ salaries.

It was gathered that certain city hall insiders are acting as “collectors” and are the ones making commissions from private lending companies if they can arrange new personal loans and collect repayments for other city hall employees. It has now become a business within a business which City Hall intends to put to a stop.


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