Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No.__ 1067

Introduced by Honorable Neptali M. Gonzales II

EXPLANATORY NOTE

We have always referred to our overseas Filipino workers as Bagong
Bayani mainly because of their contribution to the economy through the
foreign exchange they remit every year which, of course, are the fruits of their
labor from jobs abroad, opportunities that they were not able to find at home.

Under this circumstance, it is imperative for the government to come up
with an appropriate measure to provide assistance to our overseas workers and
their families during the initial stage of their employment abroad,

This bill, if passed into law, shall establish a credit assistance program
for our overseas Filipino workers through the Overseas Workers Welfare
Administration or OWWA. A loan in the amount of Fifty thousand pesos
(P50,000.00) can be availed of from the OWWA by qualified workers that can
be used to pay for their pre-deployment expenses and the living expenses of
their families during the first few months of their employment.

There is an urgent need for the enactment of this measure, hence
passage of this bill is earnestly sought.

NEPTALI M. INZALES II


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS,
First Regular Session

1067

House Bill No.

Introduced by Honorable Neptali M. Gonzales II

AN ACT
ESTABLISHING A CREDIT ASSISTANCE PROGRAM
FOR OVERSEAS WORKERS

Be it enacted by the Senate and House of Representatives of the
Philippines in Congress assembled:

SECTION 1. Title. - This Act shall be known as the “Overseas Workers
Credit Assistance Act of 2013”.

SEC. 2. Declaration of Policy. - It is hereby declared a policy of the State
to protect the interest of the overseas workers by providing them access to
credit facilities even before their departure.

SEC. 3. Loans. - An overseas Filipino worker (OFW) with a valid
employment contract processed through a licensed recruitment and manning
agency accredited by the Philippine Overseas Employment Administration
(POEA) may avail of a loan of not more than Fifty Thousand Pesos (P50,000.00)
from the Overseas Workers Welfare Administration (OWWA) for any of the
following purposes: (a) to defray the living expenses of one’s family during the
first months of absence; and/or (b) to pay for recruitment expenses including

placement fees, documentation costs and plane tickets: Provided, That any


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member of the OFW’s family not otherwise disqualified by law shall be a co-
borrower and shall execute the necessary documentation to that effect:
Provided, Further, That the loan shall be granted and released by OWWA upon
proper evaluation and submission of the employment contract and plane ticket,
duly certified to in writing by the recruitment agency or direct hirer as to their
authenticity and properly verified by the POEA.

The loan shall be entered into by and between the overseas worker-
borrower and OWWA, with the next-of-kin as a co-borrower. The loan shall be
covered with a loan redemption insurance from any private insurance provider
duly registered with and accredited by the Insurance Commission, the
premium of which shall be paid by the applicant overseas worker-borrower.

SEC. 4. Accreditation of Banks as Payment Conduits. - The OWWA shall
accredit as many domestic or foreign banking institutions as possible which
are duly authorized to do business in the Philippines in order to serve the loan
payment/amortization needs of overseas workers-borrowers. It shall be the
obligation of the overseas worker-borrower to remit the loan
payment/amortization regularly to OWWA through the banking institutions.
The OWWA shall likewise establish, within one (1) year after the effectivity of
this Act, an on-line payment system wherein the overseas worker-borrower
may pay the loan amortization through the internet.

SEC. 5. Payment of Loan. - The loan shall be paid in twelve (12) equal
monthly installments at a preferred interest rate not to exceed six percent (6%)

per annum.


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SEC. 6. Loan Payment Assurance Mechanisms. - Failure to pay the loan
and/or any violation of the terms imposed upon the loan shall be sufficient
ground for the POEA and all its offices, including it’s deputized/accredited
private entities and the Philippine Overseas Labor Offices (POLOs), to withhold
the issuance of the Overseas Employment Certificate (OEC) and any other exit
permit/clearance to work abroad to the overseas worker-borrower concerned
unless: (a) he/she agrees to the restructuring of the loan, and thereupon pays
the first installment on the said restructuring, as duly certified by OWWA, and,
together with this restructuring, he/she justifies in writing the cause/reason
for his/her failure to pay the balance due in connection with the loan; or, (b)
he/she is able to pay in full, as duly certified by OWWA, whatever balance is
due in connection with the loan.

The certification of the OWWA account officer concerned indicating
therein the just cause/reason for the failure to pay, duly attested to by the said

account officer's immediate supervisor, shall serve

proof of the just
cause/reason. This certification and all other certifications mentioned in this
section may be issued electronically, through the internet, with the electronic
signatures of the persons executing and/or attesting to the said certifications
and other authenticating safeguards.

SEC. 7. Loan Verification. - For purposes of faster loan verification
and/or authentication and to facilitate OWWA’s administration of this
credit assistance program, the Balik-Manggagawa Processing Center,

Regional Offices and Labor Assistance Centers (LACs) of the POEA, all


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Philippine Overseas Labor Offices (POLOS) abroad, all OWWA Offices in the
Philippines and abroad, all other concerned government agencies/offices
and all licensed recruitment and manning agencies deputized/accredited
by the POBA to issue OECs and other exit permits/clearances to work
abroad, shall coordinate closely and regularly with OWWA using all
available means of verifiable and properly protected communications
including, but not limited to, at least one (1) dedicated, real-time and
interactive website to be maintained and regularly updated on a twenty-

four-hour-a-day, seven-day-a-week (24/7) basis by the OWWA.

SEC. 8. Prohibited Acts and Penalties. - Any government official
and/or employee who issues an Overseas Employment Certificate (OEC)
and/or an exit permit/clearance to any overseas worker-borrower in
violation of any provision of this Act shall suffer the penalty of sixty (60)
day suspension without pay for the first offense and dismissal from the
service with a five (5S) year disqualification to hold any public office for

the second offense.

Any private entity which issues an Overseas Employment Certificate
(OEC) and/or an exit permit/clearance to any overseas worker-borrower in
violation of any provision of this Act shall suffer the penalty of sixty (60)
day suspension of its license or accreditation for the first offense and

permanent cancellation of license or accreditation for the second offense.


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SEC. 9, Additional Personnel for OWWA. - To ensure the proper
implementation of this Act, OWWA is hereby authorized to hire additional
personnel who possess the necessary skills, qualification and experience in
bookkeeping, accounting, information technology, and credit administration,
including but not limited to, the areas of evaluation of loan applications, credit
investigation, verification, authentication, and collection.

SEC. 10. Implementing Rules and Regulations. - The OWWA, in
consultation with the Senate Committee on Labor and Employment and the
House Committee on Overseas Workers Affairs, shall, within sixty (60) days
after the effectivity of this Act, issue the necessary rules and regulations for its
effective implementation.

SEC. 11. Appropriations. - The amount needed for the release of loans as
mandated under this Act shall be appropriated out of the Overseas Welfare
‘Trust Fund. The departments, agencies, bureaus, and offices charged with
carrying out the provisions of this act shall include in their respective programs
the implementation of this act, the funding of which shall be included in the
Annual General Appropriations Act.

SEC. 12. Repealing Clause. - Any other provisions of law or rules and
regulations inconsistent with the provisions of this Act are hereby repealed,
amended or modified accordingly.

SEC. 13. Separability Clause. - If, for any reason, any section or
provision of this Act is held unconstitutional or invalid, the other sections or

provisions hereof shall not be affected thereby.


1 SEC. 14. Effectivity. - This Act shall take effect fifteen (15) days after its
2 publication in the Official Gazette and in at least two (2) newspapers of general
3 circulation.

Approved,