‘Business permits of labor agencies need scrutiny’

Cebu City Acting Mayor Edgardo Labella told the City Treasurer’s Office to strictly evaluate applications for business permits of labor recruitment agencies following reports reaching the City Council of Overseas Filipino Workers (OFWs) being abused by their employers abroad or shortchanged by their agencies.

Labella said many OFWs were victims of illegal recruiters and it’s time “to scrutinize the issuance of business permits to prevent this from happening”.

He said City Hall should check if the agency is registered with the Securities and Exchange Commission (SEC) and Department of Trade and Industry (DTI).

Cebu City has over 245 active recruitment agencies, including job placement agencies and manpower agencies, based on computer records of City Hall.

The renewal of business permits starts on January 4 next year until January 20.

City Treasurer Diwa Cuevas said her office is seeking permission to extend the period until January 27.

“There are thousands of businesses in the city, and now we also have to scrutinize those recruitment agencies. So we plan to extend the application period,” said Cuevas.

Acting Mayor Labella said he was looking into the complaints regarding OFW abuse.

“I am still getting the statistics regarding this matter. We hope to put an end to illegal recruitment agencies so that our constituents will no longer suffer,” Labella said.

He wrote the city treasurer to press for closer scrutiny of the credentials of labor recruitment companies, especially those accredited by the Philippine Overseas Employment Administration (POEA).

Diwa told reporters that she would brief her staff, especially the business permit section.