DILG monitors 40 investment scams in Mindanao

DAVAO CITY--Secretary Eduardo Año said the Department of the Interior and Local Government (DILG) has monitored a total of 40 investment firms that are nothing but Ponzi schemes designed to defraud investors of their hard-earned money.

During a press briefing here Wednesday, Año vowed the DILG will play an active role in stopping the various fraudulent investment scams in Mindanao, starting with the filing of cases against the officers of the identified companies.

Año said that among the fraudulent investment schemes proliferating in Mindanao, the one operated by Kapa Ministry International ranked as the worst as it went on for three years.

"It is really very serious," Año said, referring to Kapa's promise of 30 percent investment return, which he said has victimized thousands even in other parts of the country.

The DILG chief said pyramiding schemes operated by Kapa and other dubious investment firms could only last up to a maximum of five years before the market is saturated and the money runs out.

Año said the cycle is even shorter for firms that give 300 to 500 percent return.

He also reminded local officials of their liability, saying DILG will run after those who openly support fraudulent schemes and those who fail to stop them.

Año reiterated President Rodrigo Duterte's directive to run after culprits of syndicated estafa.

"To those who have already issued permits, they are deemed cancelled immediately at the time of issuance of the memo," he added. (PNA)