DMW to go after brokers who charge placement fees for OFW jobs in SoKor
DMW Secretary Hans Leo Cacdac said the practice of such brokers has been become widespread over the last four to five years as some Filipinos clients end up paying exorbitant fees, sometimes repaid via loan arrangements, in the hope of getting the jobs.
The agency has worked to stop the practice since it took over the regulation of seasonal worker deployment last year, but noted that some of these brokers continue to operate.
"Brokers, some of them Korean nationals, roam free and charge our employed workers or provide loans… So-called loans with additional fees involved in those loans, placement fees. Ang nangyayari, apat or limang buwan nang paglalagi ng seasonal worker. [Ang sahod para sa] tatlong buwan, binabayad doon sa broker, (What happens is that the seasonal worker stays for four to five months. Their salary for three months is paid to the broker)," said Cacdac.
"Before we came in, talamak 'yung broker system… That practice has stopped, but that's not to say na walang brokers pa rin," he added.
(Before we came in, the broker system was prevalent. That practice has stopped, but that's not to say brokers no longer exist.)
Cacdac said that before the DMW intervened, seasonal contract worker deployment to South Korea was carried out through agreements made between Philippine Local Government Units (LGUs) and Korean local government units.
The DMW immediately came into the picture following the deaths of six OFWs. Since then, the Philippines has deployed 8,000 workers through DMW offices with one case of an OFW death.
"About a year ago, we stepped in and imposed an interim moratorium on the program until we allowed deployment through our offices by processing of the OFWs through the DMW. We look at their contracts, ensure that they are insured medically, and the OWWA (Overseas Workers Welfare Administration) membership. Thus far, meron tayong isang case ng nasawi over the last year since we handled the program (Thus far, we've had one case of death over the last year since we handled the program). But we are also braced to sign an interagency memorandum circular with the DILG, DFA, and all the relevant agencies about this matter," Cacdac said, referring to the Department of the Interior and Local Government and Department of Foreign Affairs.
DMW is handling a total of 25 pending cases against brokers and has assisted the DOJ in filing cases against brokers in Davao and Bulacan.
"Mahirap kasi [It's hard because] it's been a practice over the last four or five years. They still think they can roam free, but the most important thing there is we run after them, we crack down on them, and we file cases against them," he said. — VDV, GMA Integrated News
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
GMA Network
21 hours ago
- GMA Network
Economic Planning chief: I'm not happy with 6% growth
The Philippines' aspiration of being a poverty-free and middle-class society by 2040 is no longer feasible if the country's economic growth remains at a single-digit rate over the next decades, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said Thursday. At the DEPDev's 2025 mid-year press chat, Balisacan said the COVID-19 pandemic has set back the country's growth. 'We lost three years of growth momentum… [Ambisyon Natin] 2040, at the current growth, is no longer feasible anymore,' the country's chief economist said. Under the 'Ambisyon Natin 2040' roadmap, the Philippine government aspires the country to be elevated to high-income economy status with 'a prosperous middle class society where no one is poor,' 'economic growth must be relevant, inclusive and sustainable,' and 'per capita income must increase by at least three-fold.' Balisacan, however, said the goals of the roadmap might be achieved a full decade behind 2040 or by 2050. 'If we continue our momentum, we will still [achieve] that by 2050,' the DEPDev chief, referring to the country's average economic growth rate of 6% seen in the last decade. He said that the government's 'Ambisyon Natin 2040' goals might still be hit if the economy grows faster above 8% or at least by double-digit. 'That is the kind of aspiration we must have not only by our administration but by succeeding administrations,' the country's chief economist said. 'I am not, you know, happy with 6%, because with 6%, we will be overtaken by a race to grow faster,' Balisacan said. The DEPDev chief said the country needs 'to solve the constraints that we face —structural, technical, institutional all that stuff.' In his mid-year report, Balisacan said from 2023 to the first quarter of 2025, the Philippines 'remained among Asia's fastest-growing economies.' 'Unemployment fell below pre-pandemic levels, while underemployment also declined steadily in 2023 and 2024. Poverty incidence dropped to 15.5% in 2023, lifting an estimated 2.4 million Filipinos above the poverty line. Inflation eased significantly, from a peak of 8.7% in January 2023 to just 1.4% in June 2025,' he said. 'And having met our Gross National Income (GNI) per capita targets for 2023 and 2024, the Philippines is now poised to achieve upper-middle-income status in the near term. In the World Bank's estimates of GNI per capita for 2024, we were short of just $26 to become an upper-middle-income country,' he added. — RSJ, GMA Integrated News
GMA Network
a day ago
- GMA Network
Marcos state visit to India set next week
President Ferdinand "Bongbong" Marcos Jr. will embark on a five-day state visit to the Republic of India next week. The visit is scheduled from August 4 to 8, upon the invitation of Prime Minister Narendra Modi. His first stop will be in New Delhi, and he will proceed to Bangalore for official meetings and events. The President will also meet with the business sector in both cities. Aside from that, Marcos will have a meet and greet activity with the Filipino Community in New Delhi. The Philippines and India are celebrating the 75th anniversary of the establishment of their diplomatic relations in 2025. — VDV, GMA Integrated News
GMA Network
2 days ago
- GMA Network
Gov't Malampaya profit share includes contractors' income taxes —SC
The Supreme Court (SC) has lifted the charges against private contractors of the Malampaya Natural Gas Project, ruling that the Philippine government's share in the profits from the project includes the income taxes of the contractors. In a 19-page decision, the SC En Banc reversed and set aside a decision of the Commission on Audit. It lifted the charges imposed against Shell Exploration B.V., PNOC Exploration Corporation, and Chevron Malampaya LLC. 'The Court is on all fours with COA to zealously ensure that the Government is never placed at a disadvantage and that it rightfully receives what is due it in all its transactions,' it said. 'Nevertheless, remaining bound by the Constitution and the laws of the land, the Government cannot be allowed to renege on its obligation, especially when such has been distinctly outlined in the contract it freely entered into and agreed to,' it added. The petition stemmed from COA's finding that P53 billion income taxes were deducted from the government's share in the project. It ruled that the contractors were liable for the taxes. In reversing the ruling, the SC said that the government signed a service contract with the contractors for the Malampaya project. It said the contract was entered pursuant to Presidential Decree (PD) No. 87 or the Oil Exploration and Development Act. Under the contract, the contractors must remit 60% of the project's next proceeds to the government. The SC said that under PD No. 87, the contractor is liable to pay income tax, but the contractor's income tax forms part of or is counted in the government's 60% share. The SC stressed that tax assumption is not tax exemption. It did not give weight to COA's argument that the service contract infringes upon the prerogative of the government to impose tax or exempt a class from taxation. Meanwhile, the International Chamber of Commerce (ICC) Arbitral Tribunal also reaffirmed and upheld the validity of the tax assumption mechanism in the service contract in December 2019. The SC said that it must respect the finding, but even without it, its independent analysis of the COA disposition would lead to the same conclusion. The decision, penned by Associate Justice Japar Dimaampao, was promulgated in February and made public in July. — BM, GMA Integrated News
