GenSan biz group seeks crackdown vs. dubious investment schemes

GENERAL SANTOS CITY -- Wary of a potential crisis in the local economy, the business sector here urged the national government to look into the operations of dubious investment schemes operating in this city and its neighboring areas.

In a resolution released to the public on Thursday, the General Santos City Chamber of Commerce and Industry Inc. (GSCCCII) warned of a looming “economic flight”, with thousands of people already lured into the Ponzi-like investment schemes.

The resolution, signed by GSCCCII president Elmer Catulpos, vice president Benirando Claudio and corporate secretary Ronald Velasquez, expressed concern that “quick-money” investment schemes have been proliferating in this city and the provinces of Sarangani and South Cotabato.

In particular, the GSCCCII cited the investment schemes being run by entities, such as Alamco (or Almamico) and Kapa or Kabus Padatoon, which is affiliated with a religious group.

GSCCCII called on the government to look into their legitimacy “and to take the necessary actions should these schemes be found detrimental to the economy and to our efforts to build a strong economy.”

The Chamber said Kapa operates its investment scheme as a religious ministry while Alamco (Almamico) accepts money from "investors" as a small-scale mining cooperative.

These groups reportedly claim the legitimacy by presenting purported government-issued certificates and documents, it said.

However, Kapa, which is operating under the religious group Kapa Community Ministry International, has earlier been flagged as illegal by the Securities and Exchange Commission (SEC) and the Department of the Interior and Local Government.

GSCCCII said the two entities have been aggressively recruiting investors from all walks of life by offering monthly or periodic returns of as high as 30 percent to 35 percent. In the case of Kapa, it said investments are listed as "donations."

The business group said local businessmen are concerned that these investment schemes may be defrauding the government of revenues as their modes of payment of the returns do not involve any form of taxes and fees.

It noted that the payouts, which reportedly amount to millions, are not made through the banks, cash remittance or transmittal entities but directly in person to the listed "investor".

It said the problem is made worse by the recent huge bank withdrawals from recruited investors, which could lead to a possible bank holiday.

GSCCCII also said it is worried of a “looming human resource crisis” in the city and neighboring towns as some workers have already left their jobs to focus on their "investments".

“Lending companies have also noted a drastic decline in transactions. The fishing industry is now suffering from the decline in the number of fishermen. Several canneries of the tuna processing plants, private schools, and other businesses noted that they have lost some of their personnel already to such investment groups,” it said.

“When businesses and industries shut down, there shall be no more employment and the economy plummets to an abyss. Such economic condition will undoubtedly drive away legitimate businesses and investors to an exodus outside of General Santos and the region,” it added. (PNA)