GUIDELINES AND PROCEDURES FOR THE IMPLEMENTATION OF THE FILIPINO EXPATRIATE LIVELIHOOD SUPPORT FUND (FELSF) FOR DISPLACED OVERSEAS WORKERS DUE TO GLOBAL ECONOMIC CRISIS
Workers Welfare Administration (OWWA) Board Resolution No. 038 Series of
2008, allocating an additional amount of ONE HUNDRED MILLION PESOS
(Php100,000,000.00) for the Filipino Expatriate Livelihood Support Fund
(FELSF) as an economic safety net for Overseas Filipino Workers (OFWs)
who may be displaced at the country-worksites abroad, the following
implementing rules and regulations are hereby issued:
I. NATURE
The FELSF shall be implemented under the Livelihood Development
Program as an integral component of the OFW reintegration program which
shall serve as an economic safety net that may be availed of by OFWs and
family members who were displaced in country-worksites abroad due to
the current global economic crisis.
II. OBJECTIVES
The FELSF shall provide credit assistance and facilities for
entrepreneurial activities to OFWs who are displaced at
country-worksites abroad due to the current global financial crisis in
order to improve their economic productivity and general welfare,
strengthen their entrepreneurial capabilities and provide
self-employment opportunities to them and families.
III. FEATURES OF THE PROGRAM
A. The program shall be a supervised and direct lending facility
solely for OFWs and their family members who are adversely affected by
the global financial crisis;
B. It shall espouse synergy and complementation of the services offered by government agencies, non-government organizations,
church-based institutions, peoples’ organizations and the private
sector;
C. It has a long-term goal of transforming the OFWs into entrepreneurs and ensuring their sustainable livelihood opportunities;
D. It shall support the displaced worker’s livelihood projects as an additional capital to expand an existing business;
E. It shall offer a Non-collateral Loan Window with an interest of
five percent (5%) per annum, payable in 24 months and a 90-day grace
period. The loanable amount is a maximum of FIFTY THOUSAND PESOS ONLY
(PhP50,000.00) per qualified individual borrower; and
F. The loan can be availed of after going through the Phase I of the
Department of Labor and Employment (DOLE) Livelihood Package of
Assistance and Services for Displaced Workers through the National
Reintegration Center for OFWs (NRCO). Phase I consists of Business
Counselling and Skills Training.
IV. PROGRAM FUND MANAGEMENT
The amount of ONE HUNDRED MILLION PESOS (Php100,000,000.00) shall be
established as a revolving fund for the Program. Loan funds shall be
established at the Regional Welfare Offices.
V. LOAN REQUIREMENTS
A. Proof of OWWA membership
B. Proof of displacement due to the global financial crisis
C. Business Proposal
D. Financial Statements where the OFWs and/or families have existing business(es)
E. Promissory Note
F. Marital Consent, for married borrowers
VI. PROGRAM IMPLEMENTATION
The following procedures shall be implemented:
A. Loan Application and Approval
1. The Family Welfare Officer (FWO) at the Regional Welfare
Office shall interview a prospective applicant to ascertain whether
he/she is qualified under the program.2. An officer of the RWO shall conduct site inspection to
validate the data and information on the existing or proposed business.3. Only loan application with complete documentary requirements shall be included in the validation.
An evaluation report shall be submitted to the RWO Director
containing findings and recommendations. The report will then be
submitted to the concerned Regional Cluster Manager for approval.B. Mode of Fund Releases
1. The ROCS shall initiate disbursement voucher preparation for all approved loans and shall be forwarded to the concerned RWO.
2. The loan shall be released to the proponent only after
compliance of pre-release conditions and proper identification of the
borrower.3. The release of loan shall be based on business needs. Loans
for working capital or site improvements shall be released on staggered
basis.4. A loan intended for the purchase of machinery shall be paid
directly to the supplier/vendor accompanied by a Purchase Order (P.O.)C. Loan Release Requirements
Prior to the release of the loan, the proponent shall be given orientation on the following:
1. The importance of the Business Proposal as useful guide in
project implementation and the need to abide with the stipulations and
provisions of the said proposal.2. The salient provisions of the Promissory Note, which shall
contain among others, the commitment to continue to pay the loan in the
event that he/she gets redeployed for overseas job and/or that any of
his/her family members shall be the co-payee for the loan.3. Schedule of the loan payment.
D. Collection Procedure
Collection of loan payment shall be done by the RWOs through different modes, like direct payment to the appropriate Regional Office,
postal money order and other recognized financial intermediaries, such
as banks, remittance centers, etc. All payments shall be made in the
name of OWWA Filipino Expatriate Livelihood Support Fund. An official
receipt shall be issued upon receipt of the payment.All loan payments received for the day shall be recorded in a
designated cash book for the program and deposited in the depository
bank the following day, at the latest, under the account of OWWA FELSF.The collection procedure shall progress through three (3) stages: reminders, follow-up and appropriate legal measure.
1. Reminders – The borrower shall be furnished with a
monthly statement of his account. This shall serve as a reminder and
shall give the borrower the opportunity to check the accuracy of the
amount. Monthly statement shall be prepared regardless of the age of the
account to reflect outstanding balances.2. Follow-up – This shall call for a schedule of
successive actions to be applied at regular intervals, involving sending
of follow-up letters, telephone calls and telegrams.3. Legal Measure – If the reminders and follow-up actions fail, collection through a lawyer or a collection agent shall be resorted to.
E. Remittance of Collection
The designated/accredited government banks shall be used as
depository for all payments made relative to the loans extended. In no
case shall the RWOs be allowed to withdraw funds from the account in any
manner.The RWO shall remit all collections for the month to the OWWA
Central Office within five (5) working days after the reference month.
The RWOs shall furnish the Central Office the Collection Report
accompanied by the Official Receipts and validated deposit slips to the
Financial Management Service (FMS).In remitting collection, three (3) copies of the deposit slip shall
be accomplished and machine validated by the bank teller. The second
and third copies shall be retained by the RWO for reconciliation of
accounts with the OWWA Central Office.Bank charges shall be paid by the RWOs, chargeable against their Maintenance and Operating Expenses (MOE).
The FMS shall consolidate/summarize all reports of collection submitted by the RWOs.
F . Restructuring of Loans
Loan restructuring shall be recommended by the RWO. Requests for
restructuring shall be granted only on the following conditions:1. Natural and man-made calamities.
2. Illness or accident.
Requests for loan restructuring shall be denied under the following circumstances:
1. Mismanagement of business operation.
2. Diversion of funds.
Loan restructuring extending beyond the original term shall need the approval of the OWWA Administrator.
VI. PROGRAM MONITORING AND EVALUATION
A Program Monitoring and Evaluation (PME) system, designed to
identify favourable/unfavourable variance to project implementation as
planned, shall be installed to effect timely corrective measures and to
enhance success of the program. The system shall involve the
compilation, generation, analysis, validation, interpretation and
presentation of data and information with appropriate recommendations on
identified problems or concerns that would be vital to the effective
management and continuous improvement of the program.
At the Central Office, the Program Monitoring Team shall be headed by
the Director of Policy and Program Development Office (PPDO) and
composed of the following members:
a. Head, Planning and Programs Development Division
b. Head, Financial Management Service
c. Head, Regional Operations and Coordination Service
A monitoring report form shall be drawn up by the Policy and Program
Development Office (PPDO), in coordination with the ROCS and the FMS.
The OWWA RWOs shall evaluate and implement a monitoring system at the beneficiary level.
Initial visit to the project site shall be conducted within fifteen
(15) days after loan release to ascertain and ensure the proponent’s
adherence to the approved loan utilization schedule and to gather other
related data on the business project.
Regular visits shall be conducted once a month for the first three
(3) months and quarterly thereafter or when deemed necessary.
A progress report shall be prepared after every visit and shall be
submitted to the PPDO through the ROCS. A terminal report shall be
prepared by the RWO upon full payment of the loan.
VII. REPORT TO THE BOARD
A quarterly report on the progress of the implementation of the program shall be submitted to the OWWA Board of Trustees.
VIII. EFFECTIVITY
This Memorandum of Instructions shall take effect immediately.
Adopted: 12 Jan. 2009
(SGD.) CARMELITA S. DIMZON
Administrator