Crackdown on 5-6 not a racist move vs. Indians, Piñol says

The administration's initiative to stop the "5-6" lending system is "not a racist move" against Indians in the Philippines, Agriculture Secretary Manny Piñol said Friday.

In an interview on GMA News TV's News To Go, Piñol said it was "common knowledge" that many who run such a lending scheme were the "bumbay," a term used in the Philippines to refer to Indian nationals.

"Meron ba?" Piñol said when told that there were also Filipinos and other nationalities involved in the usurious practice.

"'Wag na tayong magbolahan. Common knowledge naman 'yan na 'yung mga umiikot na naka-motor... there was nothing racist about it. But the fact is 'yung mga umiikot talaga na nagpapautang na naka-motor ay 'yung mga kapatid natin na [Indian nationals]," he said.

Justice Secretary Vitaliano Aguirre II earlier warned 5-6 operators that they could be arrested any time even without a warrant.

In a Facebook post before that, Piñol shared President Rodrigo Duterte's order that foreigners involved in the "usurious '5-6' money lending scheme" be arrested and deported.

He began his post with "Goodbye Bombay!"

Some social media users, in turn, called him out for the reference.

During the s interview, Piñol said he didn't think the term was derogatory.

"I don't even think the name 'Bumbay' is derogatory. Parang 'Pinoy' lang rin siguro sa atin, tawag sa atin Pinoy, is that derogatory? I don't think so," Piñol said.

"'Yung mga ganu'ng pangalan, walang malisya, we've always referred to them as 'Bumbay.' Please don't accuse me of being racist. That's the farthest from the truth," he added.

Piñol said he only shared the matter on his page because it was discussed in the Cabinet meeting, then went on to criticize the money lending system, saying it's "causing a lot of miseries to the people."

He also noted that the government "is not coming into this controversy holding an empty bag," with a P1-billion lending program through micro-financing institutions.

In his post, he said that after hearing him discuss "the poverty in the countryside" that has led many to borrow from "5-6" lenders, Duterte "announced an initial release" for the said program.

This would be done "as soon as" the Philippine Charity Sweepstakes Office (PCSO) and the Philippine Amusement and Gaming Corporation (PAGCOR) turn over funds to the Office of the President, he quoted Duterte as saying.

Aside from this, Piñol also noted that the Department of Agriculture also has the "Punla Program," a lending program for fishers and farmers through credit cooperatives that serve as conduit.

Under the said program, farmers and fisherfolks may borrow a maximum of P100,000 without collateral, at a six-percent interest rate per annum.

"In proposing the eradication of this oppressive and unjust 5-6 lending practice, the government is coming in with a fund," Piñol said.

He added that Duterte has promised that for next year, a P1-billion lending fund will be put up "per region," which would be handled by the Department of Trade and Industry (DTI).

He said it would be lended "in the same manner that the Bumbays and the other 5-6 lenders are also lending their money, minus the very high interest rates."

During the campaign, Duterte talked about the experience of common folk who fall prey to loan sharks especially Indian citizens, who allegedly sell appliances and other items to the borrower on top of the cash loan. — Rose-An Jessica Dioquino/NB, GMA News