Loren questions Pag-Ibig's use of P172-M for ads

Senator Loren Legarda expressed dismay yesterday that the Pag-Ibig Fund used P172 million in so-called informercials featuring Vice President Noli de Castro instead of using the same for the housing needs of at least 432 Pag-Ibig members.

Loren issued the statement during the hearing conducted by the Senate Committee on Economic Affairs on taxpayers' money that are being used by government officials like De Castro for advertising purposes.

"Pag-Ibig claimed to have generated revenues of P23 billion from the P172 million it had spent for the ads, but I wonder how its officials were able to say that the purported income was a direct result of the ad placements on radio, television and print media," said Loren.

"The money would have been better spent had it been lent to Pag-Ibig members during this time of crisis, when taking loans from banks entails being saddled with high interest rates," Loren said.

Finance Secretary Margarito Teves, Health Secretary Francisco Duque, Pagcor chief Efraim Genuino, MMDA chair Bayani Fernando also attended the hearing to defend their respective infomercials.

Loren said that there's no need for Pag-Ibig to spend on advertising since it is catering to people who are already members and not the general public.

"Advertising is used when you want to penetrate a market and not when you already have a captive market as in the case of Pag-Ibig and its members," said Loren.

The senator said there are more cost effective ways for Pag-Ibig to reach out to its members, including by sending them bulk emails or text messages.