At
million OFWs deployed'in 2008, that P I 8,000 per migrant could potentially
to some P22.3 billion pesos collected by various government agencies from
aspiring nligrants for the year. The OWWA reports Pl.38 billion in collections from its
members in 2008 increasing from P1.28 billion in 2006. The POEA meanwhile reports
collecting P4O7.g million in various processing fees in 2007 which is approaching double
theP273.l million it collected lrl.2002.
I .24
be equivalent
The burden of state exactions is compounded by recruitment agencies that
overcharge for services (e.g., skills testing, medical examinations, placement fees,
documentation costs) or even demand bribes, driving up the start-up costs of migrating
even further. Large debt overhangs are in themselves a drain on migrant earnings but also
have the adverse effect of forcing passivity on the part of migrants as long as they have to
work to repay these. This situation becomes particularly problematic if it tums out that
they are victimized by illegal recruiters and do not have jobs to go into after all, if they are
suddenly rendered jobless, or if their earnings are not as much as they expected.
As it is the BSP's latest CES of the 2'd quarter of 2009 noted that a high 5l.loh of
households were repaying debt which is rnore than double the 22-9%o doing so two years
ago. While the BSP survey does not exactly specifu the nature of this debt it is very
reasonable to presume, given the general backwardness of domestic capital markets, that
these refer mainly to debts incurred in the process of seeking work abroad.
Illegal recruitment, recruitment agency abuse and traflicking. The
overwhelming bulk of migrant worker recruitment and placement is done by private
recruitment agencies of which
there are some 1,300 licensed
to operate in the country.
Illegal recruitment however
easily emerges and has a
tendency to persist - despite
penalties from fines up to life
imprisonment - because of the
low economic barriers to entry
in this activity, the constant
flow of Filipinos desperately
seeking work abroad in the
most expedient manner, and its
resulting private profitability.
Even licensed agencies commit
illegal recruitment when they
undertake recruitment, hiring
and placement contrary to the prescribed minimum rules and standards. These include
overcharging, falsification of documents, contract substitution, and unwarranted failure to
deploy workers.
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