Duterte orders arrest of “5-6” loan sharks
Staff Report Published: January 12, 2017
President Rodrigo Duterte has ordered the arrest of “5-6” lenders, a number of whom are Indians, even without a warrant to stop the popular scheme and replace it with the Department of Trade and Industry (DTI)’s alternative lending program.
Justice Secretary Vitaliano Aguirre II told reporters on Tuesday that the loan sharks were operating in the country without permit from the government and that Duterte had ordered their arrest to put an end to their usurious practices.
“The President ordered the arrest of “Bumbay” because he pities the poor Filipinos who are being sold overpriced appliances in money-lending schemes. They could be arrested without any warrant because when they are doing that they are committing a crime,” Aguirre said.
The Justice Secretary added that loan sharks commit tax fraud by not paying the correct contribution to the government for their business.
One of Duterte’s campaign promises was a clampdown on the 5-6 lending scheme which he said preys on ordinary Filipinos and small enterprises.
Borrowers of a 5-6 lending scheme incur 20% interest rate per month, which Filipinos endure if only to instantly loan money without having to go through rigorous processes in banks.