Pag-IBIG offers condonation programs

DAVAO CITY—The Pag-ibig Fund is offering separate programs to condone the arrears of both employers and borrowers until June this year.

Jose W. Banzon, Pag-ibig vice president for the Southern Mindanao area, said the Penalty Condonation and Restructuring Program is being offered to erring employers, who failed or disregarded paying their share of the members’ contribution while continuing to deduct the latter from the salaries of their workers.

The program would impose only 3 percent penalty on the total amount of their accountability.

On the other hand, the Penalty Loan Condonation for borrowers would allow another chance to borrowers to settle their accountability through a restructuring program. For both programs, the employers and borrowers would be given only until June this year to enroll and avail themselves of the program.

Banzon warned that legal action would be filed against erring employers after the June deadline in the Southern Mindanao area. This area covers Davao City, General Santos City, Kidapawan City and Cotabato City.

He said the Pag-ibig would seek assistance from other government agencies, including the Department of Labor and Employment, the Social Security System and Government Service Insurance System to determine the exact number of business establishments covered by the four city centers.

Meanwhile, the Pag-ibig collections for the acquired assets kept falling as the number continued to be successfully sold at auction.

In 2010, the Pag-ibig sold its non-performing acquired assets valued at P537.82 billion, and as acquired assets kept dwindling, it sold P289.976 billion more last year. Pag-ibig expects to get fewer income under this section due to fewer assets available.

The number of these non-performing assets could not be immediately available but Banzon said these were the housing units that owners have defaulted and have been foreclosed. Many of the remaining assets were still occupied by their original occupants, making it less attractive to bidders.

But Banzon said the bidders would be given a big percentage off the market value of the property and would also be given an additional five percent incentive off the price as litigation fee.