KAPA LOCKED DILG orders LGUs to padlock KAPA

The Department of Interior and Local Government (DILG) has directed local government units (LGUs) in the Davao Region and other parts of the country to padlock the offices of KAPA-Community Ministry International, Inc., a controversial religious group accepting investments without  permit from the Securities and Exchange Commission.

LGUs which cannot implement the order in two weeks will be held liable for violating a lawful order.

DILG Region 11 Director Alex Roldan Photo by Adam B. Morrell

According to DILG Region 11 Director Alex Roldan on Monday, May 6, an advisory signed by DILG secretary Eduardo Año was released last Thursday, May 2, re-emphasizing (LGU)s and particular government agencies to assist the SEC  in enforcing its cease and desist order (CDO)  dated February 14, 2019 against Kapa.

The DILG regional director said the SEC  issued an order on March 11 deputizing LGUs, local chief executives (LCEs), the Philippine National Police (PNP) and the National Bureau of Investigation (NBI).

However, Roldan said nearly two months after the deputization was issued, the commission noticed the continuous operation of the said investment scheme prompting the office of the commission secretary to issue a memorandum urging DILG to enforce the deputized agencies to act on the matter.

Roldan said that LGUs which fail to implement the CDO within the two-week notice will be held liable for disobeying lawful order.

“Actually, dali lang unta na sa mga LGU, kay pwede man nila ipasara if walay mapakita business permit,” the DILG official said referring to the local governments of Tagum and other LGUs in the Davao area where the questionable investment of KAPA is rampant.

The government official said this prompt action came after the inquiry of DILG Region 10 director Arnel Agabe on the implementation of the CDO and other complaint on the investment scheme.

“It is already affecting the economy, instead na sa banko ipatulog ang kwarta, didto na gina butang sa Kapa,” Roldan shared.

If this continues, he said, the value of money will certainly increase.”So kung walay kwarta ang banko, kung naay mangutang sa banko dili niya ma-leverage.”What concerned the government the most, said Roldan, is the fact that the poor sector are slowly getting involved in the pyramid investment which they foresee to push people to extreme poverty at the end of the day.

“Dili na mangopras ang uban unya ipang baligya ug sangla na ang mga kayutaan para maka invest. So the government’s initiative is to prevent, dili lang mag gukod sa nakasala but the preventie aspects. Kay in the end of the day this investment schemes will collapse naturally, once mu-collapse, kinsa ang obligasyon ang naa sa lower end sa pyramid? Whether we like it or not, this is pyramiding.”

Roldan said this will create not just economic problem but also social problem upon its collapse.

“So the better thing is to stop it,” he said. He also clarified that the commission is capable of distinguishing if Kapa is liable for scam.

Roldan also clarified that these investment schemes weren’t able to penetrate in Davao City since Mayor Sara Duterte Carpio does not favor it.

Various other  investment schemes, however, are being probed in Tagu, now dubbed in social media as “Scam Capital of the Country”, as well as Davao del Sur and Davao Oriental.

However, Roldan added that no Kapa office has yet been  closed since the advisory was released days ago.