DOF pressed to hasten probe on prepaid phone cards

Apparently frustrated over slow action in its probe of illegal prepaid phone cards and remittance services, the chair of the House Public Utilities, Transportation and Communications Committee has asked the Department of Finance to complete its findings for review by legislators.

Finance officials have taken nearly two months to conduct its investigation which will form the basis of any legislative measure to clamp down on these unlawful activities, according to Rep. David M. Apatang.

The representative met last May with Finance Sec. Lucy DLG. Nielsen to discuss the issue, and both parties agreed to give way to the DOF probe before the Legislature takes any action.

But so far, the department has yet to turn over any report to the PUTC regarding the inquiry and recommendations to prevent proliferation of unlicensed businesses on the island that engage in selling prepaid phone cards or remitting money overseas.

“As of this date, I have not heard from you regarding those specific issues,” Apatang said in a letter to Nielsen. “I hope that your concern is at the same level of intensity that I have concerning the depletion of our financial resources.”

Nielsen could not be reached for comment. Apatang said the finance secretary has not even responded to the letter he sent last June 24 for follow-up.

The committee has initiated the probe on prepaid phone cards being sold in the Commonwealth, but the Senate has already taken a bold step to discourage illegal vendors when it passed a bill that will regulate the business.

The House has yet to break any ground in determining whether existing companies that provide this service comply with tax laws and other government regulations.

They agreed, however, to study the proposed law which will task the Commonwealth Utilities Corporation to implement rules and regulations governing the operations of prepaid phone services on the island.

The measure, offered jointly by Senate President Paul A. Manglona and Sen. Juan P. Tenorio, seeks to regulate the sector and protect the public from fraudulent businessmen, noting its tremendous growth in the past few months.

It will also assess registrations fees of $200 for establishment of this type of business, while imposing penalties for illegal activities of up to $5,000 and/or imprisonment of between one to five years.

Popular among the thousands of nonresident workers on the island, these cards can readily be bought in stores for less than $10 and be used for as much as 40 minutes for calls in the Philippines, or nearly two hours for mainland or Guam connection.