LGUs urged to monitor businesses to help deter investment scams

BANTAYAN, Cebu —  Local government units (LGUs) should conduct a thorough review and monitoring of businesses operating in their jurisdictions to prevent their constituents from falling prey to investment scams.

Sixth district Board Member Glenn Anthony Soco, who heads the PB Committee on Commerce and Industry, said LGUs should go beyond ministerial duties in accepting business permit applications.

In a resolution, Soco said the LGUs have the obligation to conduct a more in-depth evaluation of the business permit applicants and continually assess the operations of the businesses once granted with a permit.

“A prior assessment of the true nature and purpose of a business entity seeking registration in a certain community is one effective tool to prevent the entry of illegal businesses appearing as duly-registered entities,” Soco’s resolution reads.

He added that the barangay officials should take part in the monitoring, considering that the barangay is the most basic unit of the government.

“The local government units are further encouraged to adopt measures to effectively monitor the activities of already registered businesses in their communities if indeed the sake are operating legitimately,” the resolution reads. 

Soco’s resolution was passed by the PB in their first out of town session in Bantayan town, Bantayan Island on Monday, September 30, 2019.

The passage of the measure in the 15th Sangguniang Panlalawigan (SP) is made in the light of the recent investment scam controversies in the province.

Last June, the Mandaue City Treasurers Office revealed that the permit of Organico Agriventures Corp. in the city was only as an admin office.

However, the CTO discovered amid the investment scam controversies that some of the investment transactions of Organico investors, including  their payouts of interests and dividends, were held at their Mandaue City office. /bmjo