PAG-IBIG FUND WILL BE

SAFE, NOGRALES ASSURES

DAVAO CITY---- Davao City Congressman Prospero Nograles today assured the 4.9 Million members of Pag-Ibig fund that their contributions would not be touched by the government even if the proposed creation of a Department of Housing and Urban Development is enacted into law.

            Nograles, Chairman of the House Committee on Housing and Urban Development, issued this assurance to allay fears that the creation of this new government agency would give Malacañang the authority to access and use Pag-Ibig contributions for its housing programs.

He said the sole purpose of the proposed Department of Housing, which is a Malacañang-certified bill, is to put various government agencies involved in the government’s housing program into one administrative umbrella. This is to rationalize and accelerate coordination in the government’s effort to provide housing to at least 300,000 families per year.

            He said that rising concerns that Pag-ibig funds could be appropriated by the government for public use once the Department of Housing is created is completely baseless because contributions are considered as private trust funds.

“ It will be illegal for the government to touch Pag-Ibig contributions because those funds are considered private,” Nograles explained.

Nograles also assured that Pag-Ibig Fund would maintain its own charter and its funds would be independently administered by the agency’s board of trustees. He said the only role, which the proposed Department of Housing would be playing in relation to Pag-Ibig fund, is the processing of housing loans by its members.