LGUs urged to cancel Kapa’s business permit

KAPA

THE Department of the Interior and Local Government (DILG) has urged all city and municipal mayors to cancel or revoke the business permits of investment company KAPA to prevent the public from being duped into investing their hard-earned money in fraudulent investment schemes.

Interior and Local Government Secretary Eduardo Año said  mayors should now refrain from issuing permits to Kapa, its allied subsidiaries and organizations and deny any application for permits of the group.

“Marami na ang naloko at marami pa sa ating mga kababayan ang maloloko sa investment scam na ito kung hindi ito aaksyunan ng mga mayor. Siguruhin ninyong hindi na magpapatuloy ang operasyon ng Kapa,” Año said.

Año’s  order came after the Securities and Exchange Commission (SEC) revoked Kapa’s certificate of registration and secured over P100 million of its assets in accordance with the asset freeze order issued by the Court of Appeals.

Earlier, President Rodrigo Duterte ordered the Philippine National Police and National Bureau of Investigation to close down the operations of Kapa after receiving complaints from the public that the group is enticing them to donate at least P5,000 in exchange for a monthly return of 30 percent.

In a memorandum, Año said it is the duty of city and municipal mayors under Republic Act 7160 of the Local Government Code “to issue licenses and permits and suspend or revoke the same for any violation of the conditions upon which said licenses or permits had been issued pursuant to law or ordinance.”

He pointed out that a business or mayor’s permit is not a right but a privilege granted by the State as the Supreme Court has ruled that a business permit is subject to the regulation of the State and may be revoked or withdrawn if there is cause to do so.

“In the case of Kapa, it is very clear that it has abused the privilege given by the government as it has ventured in an enterprise which promised profits that it can not fulfill,” he said.

The DILG chief also advised the public to be wary of get-rich-quick schemes because they will just be disheartened in the end.

“Sabi nga po ni Presidente, kapag easy money, mas malamang na hindi totoo.  Wala pa ring tatalo sa perang nanggaling sa sipag at tiyaga,” he added.

Kapa started operations three years ago in Bislig, Surigao del Sur and expanded across Mindanao before reaching the Visayas and Luzon.

Meanwhile, the Philippine National Police has also sought the full cooperation of LGUs in shutting down companies that have victimized thousands of Filipinos, including law enforcers and other government employees.

PNP Deputy Director for Intelligence Brigadier General Ferdinand O. Divina said they will be providing mayors a list of identified companies and even religious groups which have been validated to be involved in pyramiding activities.

PNP chief Director General Oscar D. Albayalde said  the police, specifically the Criminal Investigation and Detection Group headed by Major General Amador V. Corpus, have provided necessary support to the National Intelligence Coordinating Agency and the National Bureau of Investigation in serving 12 search warrants issued against fraudulent companies.

Seven of the search warrants were served by the NBI while the remaining five were served by PNP-CIDG agents.

Albayalde said  the presence of fake investment schemes have been detected in Regions 7,8,11, 2 and 13.

He added that there is no recorded presence of those scams in Metro Manila, Central Luzon and Calabarzon regions yet, apparently because residents in the three highly-urbanized regions are aware of these scams due to mass media.

“This is the reason why syndicates have targeted clients from Visayas and Mindanao.  However, we are continuing our effort to inform our personnel not to engage in these fraudulent schemes thru our regular police information and continuing education (PICE),”  said Albayalde.

Albayalde said  apart from the Surigao del Sur-based Kapa, other fake investment companies targeted by the police are the Organico, Regent, The Farm and Ever Farm.

With Alfred Dalizon