Politicians and government officials might be involved in the pyramiding scheme which explains why they are also to enforce the cease and desist order issued by the Security and Exchange Commission against the Kapa Community Ministry International Inc. (Kapa).
Alex Roldan, the regional director of Department of Interior and Local Government (DILG) XI, said they already directed the local government officials to heed the directive of the SEC to shut down offices used by the group.
The DILG initially issued a memorandum order to the LGUs last March but they haven’t noticed some noticeable progress on their order.
After two months, they now issued another memorandum order to deputize all local government units, Philippine national Police (PNP), and the National Bureau of Investigation to assist in the enforcement of the SEC order.
The memo also came with a warning for the LGUs and police officers to be administratively liable if they disobey the order.
Roldan said they don’t understand the delay since all the LGU had to do is to shutter the offices since the SEC already verified that Kapa has no permit as an investment firm.
Kapa is an investment scheme that promises a 30% interest rate to all its members which, according to Roldan, is very suspicious because if it was a legitimate scheme, business tycoons should already have joined as its members.
“It is already affecting the economy because instead of depositing the money in the bank, they are investing it on the scheme. If the bank runs out of money and someone applies for a loan, the bank can no longer leverage,” Roldan said.
He added that the government is alarmed after learning that people are putting all their money in Kapa and a good number of them have been asking for help after they failed to get a payout on their investment.