The Overseas Workers Welfare Administration (OWWA) is fearing bankruptcy by the end of 2021 if the coronavirus pandemic continues to displace overseas Filipino workers (OFWs).
During a Senate labor committee hearing on Wednesday, OWWA Administrator Hans Leo Cacdac told senators that the agency’s continuing expenditure for the assistance of OFWs affected by the crisis could “threaten” the sustainability of its trust fund.
According to Cacdac, OWWA had cash assets amounting to P19.6 billion at the beginning of 2020.
“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,” he said, adding that OWWA collections have also been down by 46 percent in recent months.
Cacdac said OWWA has so far spent P1.145 billion on food, accommodation, shelter, and transportation assistance, among others, to the affected OFWs since March 15.
Of the amount, he said P784 million was spent on hotels, which were transformed into quarantine facilities for returning OFWs.
“The number of OFWs we have billeted around 28,000. We incurred P29,000 per capita cost per OFW since March 15,” he added.
He said OWWA has also spent around P132 million for food assistance.
Of the amount, Cacdac said P60 million was allocated for OWWA’s overseas food assistance operations, which has benefited around 70,000 Filipino migrant workers.
OWWA is also providing meal assistance to seafarers stranded in Manila, he added.
“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,” he explained.
The OWWA chief said the agency also shoulders the cost of the sea, air, and land transportation for OFWs returning to their home provinces.
On top of this, Cacdac said OWWA will also be offering a P10,000 cash subsidy to OFWs and scholarships to their children, which would have an allocated fund of P2.5 billion.
“We are braced to spend around P2.5 billion in the next few weeks because of the financial assistance package,” he said.
With this in mind, OWWA funds may be depleted by at least P10 billion by the end of the year and if the situation triggered by the pandemic continues, the agency’s fund may be reduced to less than P1 billion by the end of 2021, according to Cacdac.
“We’re worried about the future…We know that this is a fund for OFWs and we’re willing to spend them but we’re also thinking of the sustainability factor,” he added.
Noting the concerns raised by OWWA, Senate Minority Leader Franklin Drilon inquired if the agency may face bankruptcy by the end of 2021. In response, Cacdac answered in the affirmative.
“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],” Cacdac said.
“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.
According to Cacdac, OWWA spends an annual average of P800 million for its reintegration program.
“That’s a pre-COVID year. On a [post] COVID year…maliit na ho yung 100,00 to 200,000 who will seek reintegration assistance,” he added.
The latest figures from the Department of Labor and Employment showed that there are around 345,000 OFWs affected by the pandemic.
