Press Statement - January 7, 2005
References: Connie Bragas-Regalado, Chairperson
Contact Numbers: 259-1145 and 0927-2157392
Vince Borneo, Information Officer - 0927-7968198

Malacanang's OEA is out to get a fast buck from OFWs in US

THE OFFICE of External Affairs (OEA), an agency created by Malacañang just three months ago, plans to raise more than $100 million (at least P5.6 billion) by selling "Makabayan Investment Certificates" to overseas Filipino workers (OFWs) in the United States, Canada and Europe.

Proceeds will be used to finance micro enterprises such as piggeries or "sari-sari" [variety] stores.

But based on the concept paper drawn up by the OEA, the Makabayan ICs appeared to be a hastily crafted investment program with no clear payback for investors and safeguards on how the money would be spent.

Interestingly, Finance Secretary Juanita Amatong and Budget Secretary Emilia Boncodin were clueless about the Makabayan ICs, although External Affairs Undersecretary Danny Consumido said the OEA had spent the past two months touring the United States to promote the investment papers.

"I am not aware of any Makabayan certificates to be issued by the government," Amatong said at a briefing in Malacañang. Boncodin was as surprised as Amatong, saying she had never heard of such a plan.

Amatong raised her eyebrows when the Inquirer showed her a copy of an OEA press release, which said that External Affairs Secretary Edgardo D. Pamintuan was planning to launch the Makabayan certificates early this year in partnership with the Department of Finance (DOF).

In the concept paper, the DOF plays a key role in the investment scheme. It is expected to draw up the mechanics for the sale of the Makabayan ICs, help the OEA choose a conduit bank ("a commercial bank with branches in strategic areas in the US") and come up with rules for the disbursement of funds.

Brainchild

In an interview, Consumido said the Makabayan investment scheme was the brainchild of Pamintuan and his OEA staff shortly after the agency's creation.

Consumido furnished the Inquirer with a letter of Pamintuan to Amatong explaining the concept of the Makabayan ICs.

"I hope that the OEA and DOF could immediately work on the mechanics of the program and we could have a program launch before Christmas," Pamintuan said in his letter dated Nov. 23, 2004.

Consumido said the OEA came up with the scheme after a study showed that OFWs were reluctant to send more money back home because they felt their money was being wasted by relatives who spent it on food binges or appliances instead of saving or investing it.

Minimum of $100

For a minimum of $100, an OFW can invest in a five-year Makabayan IC that "will earn annual interests depending on the growth of specific investment projects."

Consumido said each investor would be allowed to choose from a menu of micro enterprises handpicked by the OEA so he could decide where his money would be invested.

"It can be a piggery or 'sari-sari' store to be run by his relatives in his hometown," said Consumido.

Facilitator

While OFWs could simply send their money directly to their representatives for investment purposes, Consumido said investing through Makabayan ICs was better because they could depend on the OEA as a "facilitator" to help the beneficiary in setting up the business and training its staff.

"We are better organized so we can be more productive," Consumido said.

The OEA plans to establish a nationwide task force that would monitor and evaluate all projects funded by the Makabayan ICs. A secretariat or implementing committee would be set up to handle day-to-day operations of the program, and project management teams would be formed in all areas where there are Makabayan-funded ventures.

"If need be, contractual employees shall be hired for the program," the OEA said.

100,000 small enterprises

Consumido, however, could not explain how many contractual employees or how much in funds the OEA would need to provide livelihood training and project monitoring to the 100,000 small enterprises that it was targeting to put up from the $100 million proceeds of Makabayan.

He said he could not yet estimate how much the OFWs would earn from their investments (or if they were better off putting their money in the bank) because earnings from the Makabayan ICs were dependent on the yield of the specific project chosen by the investor.

"The investor will have to take the risk," said Consumido.

He expressed confidence that the OEA project management team in each area would be able to verify how much the Makabayan investor was making from the piggery or variety store.

The OEA, created by the President in October in the middle of the government austerity program, has been criticized as a "superbody" seeking a P100 million budget to duplicate the work of regular line departments such as the Department of Social Welfare and Development and the National Anti-Poverty Commission.

Grassroots support

Originally named Office of Constituency Affairs, the OEA's battle cry is to "bring the government closer to the people and the people closer to the government," including groups hostile to the Arroyo administration, and to "build grassroots support' for the government.

Pamintunan said in October that the OEA would link the government to hundreds of "constituency" groups around the country, from farmers, copra traders, public transport groups and the religious sector to indigenous communities, labor organizations and antigovernment groups.

Political attaché

The OEA has its own political attaché in the United States to harness some three million Filipino immigrants and expatriates on the US West Coast.

The agency was patterned after US President George W. Bush's Office for Faith-Based and Community Initiative.

Bush's first act when he was elected US president in 2000 was to create the office to "democratize access" of nongovernmental organizations and people's organizations to government funding and assistance, Pamintuan said. #