Govt to assist planholders of closed pre-need firms

MANILA, Philippines - Malacañang on Monday said it is studying ways to extend assistance to planholders of pre-need companies that are suffering heavy financial trouble as a result of the global economic slump. Deputy presidential spokesperson Lorelei Fajardo also assured that the government will check if irregularities have been committed that resulted to the financial trouble being experienced by these pre-need firms. “Palace is deeply alarmed by the current predicament by the pre-need industry. Palace is taking a proactive stance and will seriously study and consider the assistance that can be extended to the planholders who stand to lose their hard-earned money,” Fajardo said. She also said that President Gloria Macapagal Arroyo is set to convene her economic managers to determine who and what caused the problem. “Palace will convene with its economic managers and will review the recommendation of Security and Exchange Commission and ascertain whether any irregularity was committed,” she said. SEC said three pre-need companies - Legacy Consolidated Plans, Scholarship Plan Philippines, and All Asia Plans Corp - had unilaterally ceased operations without obtaining the prior approval of the commission. Legacy Consolidated, which shares owner with the group of rural banks that ceased operations recently, blamed the prevailing weak business environment for the closure. - GMANews.TV