CHIZ TO CONGRESS : OKAY RESOLUTION SUSPENDING LOAN PAYMENTS BY ONDOY VICTIMS TO GFIs

Opposition Sen. Chiz Escudero yesterday called on his colleagues in Congress to immediately approve a joint resolution mandating all government financial institutions (GFIs) like the Government Service Insurance System (GSIS), Social Security System (SSS) and Pag-Ibig to suspend loan payments of borrowers who are victims of typhoon Ondoy for at least 60 days.

"I make a somber call to all my colleagues in Congress to sign this resolution for the sake of those affected by the calamity. Time is of the essence as the people turn on their leaders for aid in this time of acute distress," Escudero said in a statement.

"The State has the inherent power and authority to intervene and protect public interest such as their welfare, health and comfort; it is a universal policy of any State, serving as parent of its citizens, especially those are in need and underprivileged," the 39-year old lawmaker said.

The senator's call is contained in Joint Resolution No. 31 which he filed on Monday and referred to the Senate Committee on Government Corporations.

He said that calamity fund releases and loans may not be enough to help victims overcome their difficulties, particularly those who lost everything in the deluge.

Escudero said that the financial standing of the SSS, GSIS and Pag-Ibig would really not be hurt by a temporary suspension of loan payments.

"Most of them, if not all, register positive investment and increase in assets. For example, SSS reported a 12.7% average return on investment and a total asset of Php242 billion plus as of March 2009," Escudero explained.

"On the other hand, GSIS claims a consistent increase in total assets from 2001 to 2007, which is Php441.87 billion, while Pag-Ibig has total assets of Php202 billion plus in 2007, an increase of Php11.386 billion compared to 2006," he said.

Even the law, Escudero said, recognizes acts of God or fortuitous events as valid exceptions in the non-fulfillment of obligations and stipulations in contracts, such as loans.

If approved by the Senate and the House of Representatives, the joint resolution would have the force of law.