SENATE STARTS PRE-NEED INDUSTRY HEARING MONDAY

The Senate starts Monday 9 a.m. its hearing on the state of the pre-need industry with focus on ensuring strict monitoring by the government of pre-need companies and protecting consumers' investments as the global financial crisis heats up.

Liberal President Sen. Mar Roxas said the Senate trade and commerce which he chairs and the Senate banks committee chaired by Sen. Chiz Escudero have invited leaders of the pre-need industry, Finance Secretary Margarito Teves, SEC Chair Fe Barin and leaders of organizations of pre-need plan holders to the Senate hearing to determine legislation needed to address recent reports of the industry's huge financial problems.

"Mahalaga na protektahan natin ang mga plan holders na ang tanging gusto ay mag-impok para sa kinabukasan ng kanilang pamilya. Matagal na nating alam na may problema ang industriya, at tatanungin natin ang mga opisyal ng SEC at finance department kung bakit wala silang ginawa para ayusin ito (It is important to protect the interest of the plan holders who invested their money for the future of their family. We knew a long time ago that the industry has problems, and we will ask SEC and finance officials why they did nothing to solve these)," Roxas said.

He said the Senate investigation will also take off from the passage of the Pre-Need Code which Roxas also authored with Sen. Edgardo Angara, former chair of the Senate banks committee, which the Upper Chamber passed on third reading last June.

"Dahil nakasaad na sa Pre-Need Code na ipinasa ng Senado ang mga panukalang dagdag na regulasyon para protektahan ang taumbayan laban sa mga mandurugas sa pre-need industry, mahalaga na tingnan natin ngayon ang kabuuang kalagayan ng kondisyon ng industriya bunga ng global financial crisis at kung paano pa ma-protektahan ang mga investments ng mga plan holders (Since the Pre-Need Code already sought the additional regulations to protect the public from scammers in the pre-need industry, it is important to assess the industry's situation in the light of the global financial crisis and how to protect the investment of plan holders)," Roxas said.

The Senate investigation stemmed from an industry position paper claiming that the value of the pre-need industry's trust fund has dropped by P40 billion, thus triggering fears of its imminent collapse.

"Additional legislation may be needed to protect consumers' interest, and due to the wide-ranging and catastrophic impact of the global financial crisis in other markets abroad, it is our primary responsibility as the country's leaders to ensure our investing public will not be in the losing end again this time," he said." Mahalaga na sa pagkakataong ito, may gawing tama ang gobyerno (It is important that this time, the government will do the right thing)."