The Market Monitor Minding the Nation's Business
An international volunteer network recently urged President Rodrigo Duterte to heed the Philippine Overseas Employment Administration’s (POEA) appeal for a much stricter and more stringent implementation of the regulatory policy on escrow deposit on foreign recruitment agencies.
In an open letter to the President dated August 24, 2018 coursed through Department of Labor and Employment (Dole) Secretary Silvestre Bello III, who called the attention of POEA Administrator Bernard Olalia, Advocates and Keepers Organization of OFWs Inc. (AKO OFW) appealed for the issuance of an Order directing concerned government agencies to sustainably and more stringently implement the US$10,000 escrow deposit requirement for foreign recruitment agencies.
The letter, which came out with a manifesto of all-out support to POEA, was signed by AKO OFW founder/chairman Celerino “Dok Chie” Umandap, president Marcia “Mars Gonz” Sadicon and other key officers and chapter presidents of the organization worldwide.
In full, the letter reads:
Dear President Duterte:
“For and in behalf of our fellow Filipinos who are working in the overseas, we, the officers and volunteers/ members of Advocates and Keepers Organization of OFWs Inc. (AKO OFW) are humbly yet bravely taking this initiative to most ardently and urgently request His Excellency to kindly issue an Order instructing all concerned agencies, bureaus and offices of the government to sustainably and more strictly implement the mandatory requirement of escrow deposit of all FRAs in the amount of ten thousand United States Dollars (US$10,000.00) for the sake and sole benefits of vulnerable OFWs and their families.”
“Mr. President, AKO OFW is a global non-governmental organization with sterling and vast track records of helping search and rescue distressed OFWs.”
“We are as well taking this rare opportunity to come out with a manifesto of allout support to POEA Admin Olalia in his drive to more stringently implement the compliance of these FRAs to the said prerequisites.”
“For the information of all concerned, “Escrow deposit is expressly provided for under Section 96 B5 of the Revised POEA Rules and Regulations Governing the Recruitment and Employment of Landbased Overseas Filipino Workers of 2016 which states that Foreign Placement Agencies (FPAs) hiring Domestic Helpers (DHs) shall be required to put up and maintain an escrow account with a bank authorized by the Bangko Sentral ng Pilipinas to handle trust accounts with deposit in the amount of Fifty Thousand United States Dollars (US$50,000.00). The escrow deposit shall answer for all valid and legal claims arising from violations of contracts of employment.”
“Further, it is therein stated, ‘If the principal/ employer has a pending case during the renewal of the accreditation, the principal/ employer shall be required to put up an additional escrow deposit which shall not exceed a total of Fifty Thousand United States Dollars (US$50,000) and shall be subject to certain schedule of payment.”
“However, this US$50,000 was reduced to US$10,000 through POEA Governing Board Resolution No. 10, Series of 2016 that was passed on June 22, 2016 which provides the guidelines and schedule of payment based on the current standing of the principal or employer applying for accreditation or renewal of its accreditation.”
“Upon approval of the accreditation or renewal thereof, FPAs hiring DHs shall be required to put up and maintain an escrow account with a bank authorized by the BSP to handle trust accounts with a minimum deposit in the amount of US$10,000. The escrow deposit shall primarily answer for the settlement of all valid and legal claims and satisfaction of all judgment awards arising from violation of contracts of employment.”
“If the FPA has a pending case during the renewal of its accreditation, the FPA shall be required to put up an additional escrow deposit which shall not exceed US$50,000 and shall pay an additional amount as follows:
One (1) to five (5) cases, US$3,000 per case; six (6) to ten (10) cases, US$4,000 per case; and eleven (11) or more cases, US$5,000 per case.”
“During the 2016 national and local elections campaign sorties, as you were then a presidential candidate, you promised and professed to continuously become an ever dependable ally of OFWs and their families.”
“True to your commitment and as a gesture of genuine concern to our countrymen living and working in the overseas, and specifically, In the aftermath of the discovery of brutal death of Joanna Demafelis and other incidents of maltreatment of HSWs in Kuwait, His Excellency implemented the total ban on employment and deployment of OFWs to the said Gulf country.”
“It is these circumstances and premises that we are calling the President’s attention, hoping and deeply praying that imposition of penalty or sanction be immediately undertaken against non-compliant FRAs to the escrow deposit requirement to continuously protect and promote the benefits, interest, rights and general welfare of those OFWs bound for Kuwait, those in other Arab countries and eventually, the OFWs in all nations allover the world who are and would be victims of abuse and exploitation of employers and other entities abroad.”
“May the Almighty God continue to bless us and all men and women of goodwill.”