RIYADH, 2 February 2004 — Filipinos in the Saudi capital have criticized the government’s Pag-Ibig Overseas Housing Program (POP) despite what many perceive as benefits it gives to overseas Filipino workers (OFWs) intending to have a house and lot of their own in the Philippines.

“While it is true that there are OFWs who have availed of housing program, more could not avail of it because of POP’s inflexible policy,” said Cenon “Nonie” C. Sagadal, former president of Leybisa and currently based in Hofuf for RCBC-Telemoney.

Under the POP, an OFW who is a POP member and receives a salary of not less than $1,000 a month can borrow up to 2 million pesos. The amount actually depends on the OFW’s capacity to pay.

When the matter was brought to his attention, the POP representative, who wished to remain anonymous, said there was really no way for those OFW to re-apply for loans because of that “inflexible policy.”

The “inflexible policy”, he said, refers to the fact that “if and when an OFW cannot pay the monthly amortizations for the house and lot for at least three consecutive months, the bank which financed the construction would foreclose on the property.” The bank could then dispose of the property in whatever way it deems fit so it could recover its investment.

The representative added that the problem starts when the POP officer recommends approval of a loan even if he knows that the OFW applying for a house and lot could not pay the monthly amortizations.

Elpidio R. Tanaliga, president of the Sangguniang Masang Pilipino, International (Filipino Grass Roots Forum International), said that the POP should not only humanize its objectives in helping OFWs but also by amending its rules to accommodate those who had applied in the past but could not continue because they could not afford the monthly amortization.

“They might have received the wrong advise from the POP officer himself in the past so why not give them a chance,” he said.

Dhoris dela Cruz, a teacher at one of the local schools here, said that this POP policy should be amended so that OFWs who defaulted on their monthly amortizations could re-apply again to eventually have what they may call as “home.”

“It is unfair that OFWs could not apply again after defaulting on their monthly payments for an earlier house and lot package because they got the wrong advise or that their applications were approved even if they could not afford the monthly installments,” she said.

However, others — especially those in the accounting profession — have a different opinion. A BS Commerce graduate, who is teaching in one of the schools here, said: “That’s the POP law. Why complain against it? In the first place, those who had defaulted in their monthly amortizations should have known right at the beginning the risks they were taking,” she said.

Aside from the housing program, the POP also enables OFWs to apply for a loan to complete a residential area on their own residential units or lots; purchase a fully developed residential lot not exceeding 1,000 sq. meters; do major repairs, expansion or renovation of an existing residential building, townhouse or condominium; refinance an existing loan with an institution acceptable to Pag-Ibig Fund provided the said account is current and updated for the past 24 months.

But to be able to borrow, an OFW must be an active POP member and must have remitted at least 12 monthly membership contributions, fall in insurable status and is not yet over 65 years old at the maturity of the loan.