DSWD’s Gatchalian warns cash transfer beneficiaries vs. ‘sangla-ATM’

The Department of Social Welfare and Development (DSWD) on Saturday warned beneficiaries of the government’s cash transfer subsidy programs against the practice of using their cash cards or ATM cards as loan collateral.

In an interview on Dobol B TV, DSWD Secretary Rex Gatchalian said that when a beneficiary turns over his or her cash card to another person “then in effect, that new person becomes the new beneficiary.”

“That is against the rules,” Gatchalian said.

The DSWD chief further explained that engaging in “sangla-ATM” schemes is a violation of the cash transfer program.

“Anytime na isangla mo ang isang cash card na ipinagkaloob sa'yo ng gobyerno... ilegal 'yun. Sa 'yo ibinigay 'yun, sa 'yo nakapangalan 'yun at 'wag na wag mong ibibigay sa ibang tao,” he said.

(Anytime you pawn a cash card given to you by the government — that is illegal. It was given to you and was issued in your name. Don't ever give it to other people.)

“May parusa 'yun. You can be disbarred from future programs of the government,” he added.

(There are penalties for [pawning a cash card])

Gatchalian encouraged the public to inform the DSWD about beneficiaries engaging in the pawning of their cash cards.

“Let us know and we will investigate,” he said.

As early as 2018, the Bangko Sentral ng Pilipinas (BSP) said no law exists prohibiting pawning of ATM cards in exchange for obtaining loans.

A 2022 BSP survey showed 2.6% of individuals getting loans adhere to this scheme.

The BSP has also advised the public to avoid participating in “sangla-ATM” schemes as it may result of financial troubles. —KG, GMA Integrated News