The Overseas Workers Welfare Administration (OWWA) has expressed concern about the sustainability of its fund if the number of displaced migrant workers continues to increase as a ramification of coronavirus pandemic.
OWWA Administrator Hans Leo Cacdac told a senate labor committee hearing on Wednesday his upfront opinion in lieu of Senate Minority Leader Franklin Drilon’s inquiry on the draining finances of the agency that may result in bankruptcy in 2021, reported Inquirer.
“If the current situation keeps up we are spending for hotels, we’re spending for food, we’re spending for transport, assuming all factors currently present continue… yes [we could face bankruptcy by 2021],” said the OWWA chief.
“We started the year at P19.6 billion, we’re down P18.8 billion due to expenditures natin for the first half of the year. That’s one. And number two, we’re down 46 percent sa collections,” said Cacdac.
So far, the agency said it has spent P1.145 billion on basic needs and transportation assistance to the affected OFWs since the government declared the enhanced community quarantine on March 15. Of this, P784 million went to expenditures on hotels, which were turned into quarantine facilities for returning OFWs.
Cacdac said that OWWA spends P29,000 per capita cost per OFW. Since March 15, they have accommodated around 28,000 OFWs, he said.
They also pay for the transportation cost to send OFWs to their home provinces.
“For the rest, we have spent here in what we call Tulong Marino Program benefiting 7,000 stranded seafarers all around the city,” Cacdac said.
“Sila po yung mga seafarers na may kontrata o matagal nang seafarers naga-aapply ng contract, naabutan ng COVID and have been living in dorms, boarding houses around the city. We have been providing food assistance to 7,000 of them since March 15 every day, three meals a day,” the OWWA chief added.
Cacdac fears that OWWA fund may be reduced to less than P1 billion by the end of 2021, if the situation continues.
“By the end of next year, if this trend keeps up, we will be down to less than P1 billion and that’s not even assuming that our reintegration programs will be on full swing,” he added.
