PCCI-Leyte to Land Bank: Release Germany’s P2B Yolanda aid fund

TACLOBAN CITY — The Philippine Chamber of Commerce Incorporated (PCCI) office here is urging the Land Bank of the Philippines (LBP) to release the P2 billion provided by the German government way back in 2014.

The German donation was intended to help local businesses get back on their feet in the typhoon Yolanda corridor in the wake of massive devastation and economic losses.

PCCI-Tacloban Leyte president Wilson Uy said the money was channeled by the German government through LBP to be loaned to the hard-hit businessmen.

But the Commission on Audit found out that the money had actually not been lent out as intended, or used, which prompted COA to suggest that, perhaps, the fund can revert to the national government.

The P2-billion allotted for a credit fund to be channeled through eligible microfinance institutions for relending to microentrepreneurs and enterprises in Yolanda-affected areas has not been utilized, and, so, did not benefit the victims of the typhoon, the COA findings disclosed.

Loans have not been availed of despite early release of funds to the LBP, the state auditors pointed out. The audit team remarked that LBP’s failure to use the money for almost two years defeated the purpose for which it was intended.

The audit team said Germany allowed the request of the Department of Finance to use part of the grant of Kreditanstalt Fur Weideraufbau-Interest Differential Fund for Reconstruction Assistance on Yolanda through a credit support fund.

“As the president of the Chamber, I wrote a position paper to the Regional Development Council to help us with this, so that the money should go to where it is intended,” Uy said.

Businessmen who suffered great loss due to the calamity may have re-opened their businesses

but, still, they continue to pay back accounts with their suppliers.

Uy raised the issue during the Visayas Area Business Conference in Ormoc held on September 1517, but a response has not yet been received from concerned instrumentalities.

He will also raise the same concern in the upcoming National Business Conference this year. “Land Bank hasn’t raised any reason why did they held the money for more than a year. We will be surprised if this doesn’t prick the curiosity of the German government. I hope that the national government will listen to our call,” Uy added.