OVERSEAS Filipino workers (OFWs) displaced by the bankruptcies of Saudi Arabian construction companies in 2015 and 2016 will be able to claim their indemnity claims through the over-the-counter banking services of the Land Bank of the Philippines (Landbank).
In a statement that Landbank issued last Monday, the state-run lender announced partnering with the Overseas Filipino Bank (OFBank) and the Department of Migrant Workers (DMW) to expedite the delivery of indemnity claims to OFWs.
Landbank President and CEO and OFBank Chairman Lynette V. Ortiz, OFBank Officer-In-Charge (OIC) and lawyer Reo S. Andarino and DMW OIC-Secretary Hans Leo J. Cacdac inked the signing of the tripartite Memorandum of Agreement at the DMW Office in Pasig on March 1.
The collaboration is said to integrate and streamline the processes of Landbank and OFBank with the DMW, which will fast-track the processing and crediting of checks as compensation for the unpaid wages and other benefits of affected OFWs, including the claimant families of eligible workers already deceased.
OFWs may claim their indemnity claims free of charge through Landbank’s 607 branches and branch-lite units nationwide.
According to the statement, the Landbank and the OFBank have credited a total of 1,211 checks amounting to $16.4 million to affected OFWs as of end-February this year.
Following the retrenchment of over 9,000 OFWs who worked in Saudi construction firms in 2015 and 2016, checks were issued by the Alinma Bank as part of the Saudi government’s efforts to settle the unpaid claims.
The Saudi government allocated 2 billion Saudi Riyal for the said payments upon the instruction of the Saudi Crown Prince and Prime Minister Mohammed bin Salman. The DMW said it expects two more batches of checks will be released by the Alinma Bank in the coming months. (See: https://businessmirror.com.ph/2024/02/19/dmw-lbp-aiding-2015-16-saudi-ofws-heirs-get-their-checks/).
According to the Landbank, it will monitor the “outward bills for collection” from the OFWs by coordinating with foreign depository banks. It will also facilitate the flow of inward funds to the OFBank accounts of their beneficiaries, the statement read.
Meanwhile, the OFBank will assist OFWs and their beneficiaries, including those who are abroad, in opening an account and using the bank’s digital services. It will also collaborate with the DMW to raise awareness of the procedures of the negotiation of indemnity checks from foreign employers.
Additionally, OFBank will also spearhead in offering OFWs with financial education services, particularly on managing savings and investments as well as accessing the bank’s digital services.
According to the statement, DMW will coordinate with all the identified beneficiaries and will assist with the procedures for the negotiation of the checks. To immediately respond to the inquiries of qualified OFWs and their beneficiaries, the department will also maintain a helpline.
The DMW will also handle the negotiation for the cases of deceased eligible OFWs in favor of their identified heirs and family members.