MANILA, 26 May 2003 — Central bank officials have said the OFWNet Foundation’s act of soliciting funds from overseas Filipinos to set up a bank was illegal, but the group maintained yesterday that it was standing on solid ground.

“Let them talk. If we consider all those written words, nothing will happen. Let our record speak for itself — those OFWs and OFW families we are helping,” OFWNet managing director Rachelle Garcia told Arab News.

A Manila Bulletin report on Saturday quoted Diwa Guingundo, managing director in charge of research of the Bangko Sentral ng Pilipinas (BSP) as saying it was unlawful for OFWNet and OFW International Holdings to solicit funds for the establishment of a bank without the central bank’s authority.

The report said Gunigundo made the statement over a radio program entitled “Pamilyang OFWs-SMEs News Bureau” aired separately over stations DZRJ and Kabayan Radio on Saturday night.

Gunigundo’s statement was apparently in answer to a referral by the Securities and Exchange Commission (SEC) of inquiries from overseas Filipinos as to the legality of the holding firm’s operations.

The holdings company, which was registered with the SEC on March 11, 2002, is the business arm of OFWNet Foundation Inc.

It was learned that the two organizations are inviting, through the Internet and during their road show, the so-called “founder-investors” to invest from $220 to $10,120 for the formation of an OFW Bank in five years time.

The same Manila Bulleting report also quoted Milagros Ayuyao, officer-in-charge of the BSPs Supervision and Examination Sector, as saying there was no OFW Bank registered with the BSP and neither was there a bank exclusively owned by OFWs.

“The BSP has supervisory powers over institutions that are performing banking and quasi-banking functions.... Those found violating pertinent banking laws, rules and regulations will be subject to penalties provided for under Section 36 of the New Central Bank Act,” the report further quoted Gunigundo as saying in the radio program.

Jimmy Leonida, a Jeddah-based official of OFWNet and OFW Holdings, said their representatives in Manila would meet with SEC and BSP officials “to clarify things with them.” He said they would also seek to air their side with the Manila Bulletin and the radio stations concerned.

Leonida and Alan Exevea, another OFWNet leader, exhorted members of OFWNet not to be discouraged by erroneous information by their “detractors” and “critics.”

“This is only the beginning, as we become more visible and more aggressive in our activities ... critics will do their best to find faults and loopholes,” Excevea said in an e-mail letter to their members.

“Opportunists are lurking around waiting for a chance to pin us down and enter the vacuum that may arise. To all of these, we will face them with a clean conscience and purity in our hearts. “We enjoin everyone to remain steadfast and committed to what we are fighting for: OFW EMPOWERMENT! Despite all the issues and criticisms that we encountered and will encounter, we must remain sober and focused. For nothing can fail for as long as it is done with all honesty, purity in heart and unquestionable commitment to achieve success,” Excevea said.

Leonida maintained that their attempt to establish a bank owned by OFWs is “the ultimate symbol of economic emancipation for OFWs.” He said the bank would service OFWs in the areas of remittance, credit, housing and insurance. Furthermore, OFWs would have preferential treatment, unlike in other banks which have been noted to have a prejudiced attitude toward OFWs.