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Binay bares P30B Pag-Ibig income

  • Written by Peoples Journal
  • Published in Top Stories
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Featured Jejomar Binay Jejomar Binay

VICE President Jejomar C. Binay announced that the Home Development Mutual (Pag-IBIG) Fund has achieved its highest gross and net income in its 34-year history, at P30.68 billion and P16.22 billion, respectively.
He also said that Pag-IBIG’s total assets have now reached P376.09 billion which is 9.12% higher than last year.
Binay, who is the chairman of the Pag-IBIG Fund Board of Trustees, announced these record-breaking financial accomplishments during Pag-IBIG Fund’s Midterm State of the Fund Address where he met with different Pag-IBIG Fund stakeholders.

“Pag-IBIG Fund continues to be bigger, offers better services and more benefits to its members through faster and more efficient operations, all without increasing its monthly contribution which remains at P100 since the 1980s,” Binay said.
“The record-breaking achievements in 2014 reinforce Pag-IBIG’s solid and robust financial standing that resulted from the reforms and innovations that Pag-IBIG put into action in the past four years,” he added.
Binay also said Pag-IBIG’s housing loan takeout in 2014 set a new record at P40.6 billion for 54,026 units which is up by 19% and 14% from P33.96 billion for 47,562 units in 2013, respectively. He added that the performing loans ratio (PLR) also went up to 87% in 2014, from 83% in 2013.  This is the highest PLR attained by Pag-IBIG from a low 79% in 2008.
“In 2014, Pag-IBIG recorded an impressive housing loan portfolio, a feat propelled by the reforms implemented by the Fund such as the creation of a department focused on marketing the housing business, the execution of strengthened underwriting guidelines, and an efficient collection mechanism, which resulted in high loan takeouts and the best performing loans ratio Pag-IBIG has ever attained in its 34-year history,” he said.
Outsourcing of collections for housing loans in arrears led to the conversion of 47% of non-performing loans, or 189,498 accounts, into active accounts or performing loans.  In 2014 alone, Pag-IBIG, through the collection agencies, was able to collect P2.7 billion.
Increased membership level and savings
Binay said the enhanced processes in loan applications and membership registration, as well as the increased payment channels for amortizations and monthly savings led to more Filipino workers registering with Pag-IBIG.
According to Binay, Pag-IBIG membership grew by 6.6 million in the past four years, and total membership grew by 9% from 13.49 million in 2013 to 14.76 million in 2014. Voluntary members increased most by 27% from 75,933 in 2013 to 96,694 in 2014.  The number of overseas Filipino workers rose next by 20% from 3,337,925 in 2013 to 3,999,663 in 2014.
Binay said Pag-IBIG collected P28.07 billion in members’ savings (MS) in 2014 alone, including P3.8 billion worth of voluntary upgraded savings, or beyond the monthly savings mandated by law, demonstrating that members trust Pag-IBIG with their hard-earned money.  MS increased by 7% from P26.13 billion in 2013.  In 2014, MP2 savers reached 25,017 and entrusted their P362 million to Pag-IBIG, up by 36% compared to MP2 savings collected in 2013.  Around 96,694 voluntary members further added P463 million to Pag-IBIG’s MS collection, higher by 22.5% than in 2013.
“Hindi po matatawaran ang P4.66 bilyon na boluntaryong inimpok sa Pag-IBIG ng 121,979 Pag-IBIG members. Wala pong duda, ito ay isang patunay ng tiwala at kumpiyansa sa Pag-IBIG Fund ng mga Pag-IBIG members,” Binay said.
Binay also said that the Pag-IBIG Board recently declared P11.34 billion in dividends in 2014, at a dividend rate of 4.18 percent, much higher than the interest rate of 0.5% to 1% offered by banking institutions.  Savers under the Modified Pag-IBIG 2 (MP2) Program earned dividends at a higher dividend rate of 4.68%.  Pag-IBIG has credited a total of P80.73 billion to members’ accounts in the past decade, 58 percent of which, or P47.1 billion, was declared from 2010 to 2014.
“Dahil sa mas lumalaki at mas matatag na pondo, ang mga Pag-IBIG members ngayon ay may mas marami nang benepisyo,” he added.
Meanwhile, Binay said that Pag-IBIG also partnered with other government agencies, like the Bureau of Internal Revenue, Land Registration Authority, and Philippine Overseas Employment Administration for speedier and more efficient servicing of clients.  It also utilized modern technology like e-payments and web-based systems, and enlisted more payment channels, for greater convenience to members.
“Una na diyan ang ating pakikipag-usap sa Land Registration Authority (LRA). Natapos na natin ang final testing ng isang sistema kung saan gagamit na ang Pag-IBIG ng 2D barcode na naglalaman ng mga kailangang impormasyon at datos ng Registry of Deeds (RD), para sa housing loan documents. Pinirmahan na rin ng dalawang ahensya ang Joint Memorandum Circular kaugnay sa proyektong ito at sa mga darating na araw, maipatutupad na natin ito,” Binay said.
“Dahil mas madali na ang pagpasok ng impormasyon sa RD, inaasahan natin na bababa sa kalahati ang haba ng oras sa pag-annotate ng titulo,” he added.
Recognitions and votes of confidence
Binay said that the year 2014 showed a repeat of recognitions received in 2013 and even exceeded 2013’s level of accomplishment, a testament to Pag-IBIG Fund’s firm commitment towards providing the best service to its members, as the Fund officers and employees live the standards of excellent performance and good governance.
The German firm TÜV SÜD gave Pag-IBIG its second ISO 9001:2008 certification for its Membership Registration Process that now covers all 11 NCR branches, after setting the record in 2011 as being the fastest to complete the certification process among Government Owned and Controlled Corporations (GOCCs), at only three months and 19 days. The Commission on Audit issued a second consecutive Unqualified Opinion on Pag-IBIG’s Financial Statements for 2013.
Binay also said that all Pag-IBIG branches surveyed in the Anti-Red Tape Act (ARTA) Report Card Survey again enjoyed a 100 percent passing rate – the only government agency to enjoy such back-to-back feat in 2013 and 2014, with 26 branches receiving Excellent scores in 2014.
“Sa mga nagtatangka na dungisan ang magandang pangalan ng Pag-IBIG Fund, ito ang sagot namin sa inyo: Isang maayos, may puso, malakas, at matatag na Pag-IBIG Fund,” Binay said.
‘Lulunurin namin kayo sa lahat ng magaganda at puspusang pinag-aralang benepisyo at programa, ng serbisyong tumatapat sa global standards, isang GOCC na maipagmamalaki ng ating pamahalaan na tumatahak hindi lang ng tuwid na daan kundi nagdadala ng konkreto at outstanding results. Ang mga numerong aking iniulat ay hindi maaaring magsinungaling, hindi maitatatwa,” he added.
Meanwhile, Binay acknowledged the statements of support Pag-IBIG has received from its stakeholders.
“Our internal and external stakeholders, the Pag-IBIG employees and the country’s leading developer associations, respectively, stood by Pag-IBIG when it was accused of favoritism, validating the good work and reforms we have been doing since we assumed office,” he said.
The Organization of Socialized Housing Developers of the Philippines (OSHDP) attested to “the good corporate governance of Pag-IBIG Fund.”
“We witnessed the strong sense of professionalism that characterized its leadership these past four years…  making it at par with how the biggest banks and publicly-listed corporations in the country are being run,” the OSHDP said.
On the other hand, the Subdivision and Housing Developers Association also confirmed the “professionalism, competence, integrity, and good governance practices in our dealings with the current Pag-IBIG Fund CEO and its management team.  They have exhibited full transparency and openness during dialogues with key stakeholders to formulate and implement much needed reforms that have benefited the housing industry as a whole.”
Meanwhile, the Pag-IBIG Fund Employees’ Labor Association had earlier stated that “[they] respect and believe in the integrity and professionalism of the current Pag-IBIG Fund Management, and [they], as the representatives of the rank-and-file employees, shall be the foremost protectors of Pag-IBIG Fund.”