Philippine Stimulus fund

[Twin-Skies]

Those with jobs will want to read this:

SSS: P12.5-B share in stimulus fund

To perk up the economy in the midst of a worldwide financial turmoil, Malacañang plans to set up a P330-billion stimulus fund, Filipino-style.

Into this fund, the state-run pension fund Social Security System (SSS) will put about P12.5 billion of its members’ money.

As CEO Neri puts it, the SSS share will be an investment, earning a guaranteed minimum of 8 percent a year and with a sovereign guarantee.

The avenues of investment will include infrastructure (or public works, such as roads and bridges, airports and harbors), as allowed by the SSS charter.

The members of the ever-alert watchdog, the Philippine Association of Retired Persons (PARP), are vigorously debating the SSS plan among themselves.

The founding national president Amading Cabaero, who now lives in Cebu, is totally against the SSS plan. He is emailing everybody in sight. The plan is too risky, he warns. Besides, he says, what good is the sovereign guarantee of a corrupt government?

We must all admit he has a point.

Over bowls of “pancit canton” noodles, the PARP National Executive Board, of which I am a member, discussed the SSS plan rather lengthily in a recent meeting. The consensus was that, if the stimulus fund will preserve and create jobs, thereby maintaining membership rolls, why should not SSS contribute its share?

Besides, those who lose their jobs (such as in the closures of Intel and Panasonic) are a double loss to SSS since they are active and paying members who do not draw any benefits, except an occasional loan, from the system.

But, then, SSS should not throw money into shark-invested waters. Can you not see our greedy lawmakers, and well-connected contractors (blacklisted by the World Bank or not) salivating over the prospects of grabbing a slice of the pudding?

Also, the SSS should remember that past Philippine presidents ravaged SSS funds. The annual financial statement is still laden with toxic assets that can be traced to Presidential meddling.

When he was president, Fidel Ramos ordered the SSS to help finance his flagship project of building 1.2 million low-cost houses. The money was lent to the government’s Home Mortgage Finance Corp., which went bankrupt three times. Today, those hopelessly uncollectible loans, including penalties, come up to a whopping P40 million.

Joseph Estrada ordered SSS to invest in shaky enterprises, resulting in more toxic assets in the books of SSS.

The most recent attempt to ravage SSS was an executive order by President Gloria Macapagal-Arroyo mandating SSS to spend P700 million on a proposed identification system for government employees, a clear criminal act under the SSS charter.

The order was withdrawn after PARP threatened to send then-CEO Corazon de la Paz to a minimum of six months in jail.

Personally, I am prepared to go along with the plan to contribute P12.5 billion into the stimulus fund. But on two conditions: First, SSS should not abdicate control over the disbursement and collection of the money; second — and this is more important — the money should be spent on projects that will create jobs and increase SSS membership.

Let everyone be warned: PARP is watching!

What makees this news particularly painful is that last week, the administration okayed an additional 2 billion PHP to be allocated to pork barrel funds for this year

[Hempire]

Open up the Hemp Market and let us all reap the benefits of a healthier and happier world.

[Grim]

Open up the Hemp Market and let us all reap the benefits of a healthier and happier world.

There goes the topic.