Armed Forces and Police Savings & Loan Association, Inc.

The Armed Forces and Police Savings & Loan Association, Inc. (AFPSLAI) is a banking corporation in the Philippines associated with the Philippine military and police.

As of 2016, it had 69 billion Philippine dollars in assets,[1] which are exempt from taxes in the Philippines.[2] Also as of 2016 there were 21 branches within the Philippines, along with and 50 extension offices. There were about 500,000 members.[3] Any changes in its bylaws are required to be approved by the Bangko Sentral ng Pilipinas.[4]

The Savings and Loan has a reputation for offering tax-free, high yield dividend products to its members that are not insured by the PIDC. Quarterly contributions to the higher yielding investments are capped.[5]

Events

In 1986, Noe S. Andaya was newly elected as president was elected to head the AFPSLAI. He wanted to increase its capitalization, and in order to do this two years later the association began granting a one percent finders' fee to encourage recruiters to get new depositors to establish accounts. Unfortunately, the cost of the finders' fee drained the AFPSLAI's finances and contributed to its collapse.[6] Then President of the Philippines Corazon Aquino noted in a 1992 State of the Union address that since the AFPSLAI had collapsed, it would no longer manage the military's pensions. In 2016, a news report incorrectly stated that the AFPSLAI managed the pensions. President and CEO of the AFPSLAI and retired Lt. General Virgilio O. Domingo responded in a letter to a newspaper editor that it didn't manage the pensions anymore.[7]

In 1992, a group of VARO Manilla Foreign Service employees organized a scheme to swindle the AFPSLAI. They produced fraudulent pension award letters. Then, the letters were taken to the AFPSLAI where they were used as collateral for a total of 1.5 million Philippine dollars in loans. The loans were then defaulted upon. This was halted by terminating the VARO Manilla employees.[8]

In 2002, a total of 117.7 million Philippine dollars in rebates were distributed to about 195,000 accounts. The rebates were for salary loans and ranged from 500 to 2,000 Philippine dollars each.[9]

In 2002, it had nonperforming bad loans of 1.4 billion Philippine dollars, but for 2003 this had increased to 4.18 billion Philippine dollars. As of 2017, the last major loss it took was in 2006 when it lost 500 million Philippine dollars invested in the Centennial Savings Bank and Centennial Financing Corp[10][11]

In 2017, the branch in Calapan City helped police nab a group of 8 criminals who used the identity to of a retired policeman in an attempt to swindle the AFPSLAI out of 2 million Philippine dollars.[12]

Personal loans made to military personnel and police officers are repaid by automatic deductions from their paychecks. In recognition of the hardship caused by the COVID-19 pandemic, the Philippine National Police ordered a 30-day moratorium on automatic repayments for the month of April 2020.[13]

Charitable activities
  • Scholarship program for dependents of members[14][15]
  • Outreach program[16]
  • Donations of items for military bases[17][18]
  • Financial literacy[20]
  • Anti-violence and anti-extremism peace advocacy[21]

See also

References
  1. AFPSLAI still exists, hale with P69B+ in assets, February 09, 2016, inquirer.net
  2. RESOLUTION NO. M-19 Republic of the Philippines, CENTRAL BOARD OF ASSESSMENT APPEALS
  3. "Armed Forces and Police Savings & Loan Association, Inc. (AFPSLAI) | Mega Manila Directory". 2017-08-17. Retrieved 2020-06-08.
  4. SEC-OGC Opinion No. 12-09, Office of the General Counsel, Securities and Exchange Commission, 23 May 2012
  5. "There's Something About AFPSLAI". A Wise Filipino Soldier. 2013-07-30. Retrieved 2016-08-26.
  6. G.R. No. 168486, Supreme Court of the Philippines, First Division, Manila June 27, 2006
  7. AFPSLAI: We don’t manage AFP’s pension, February 5, 2016, philstar.com
  8. Veterans' Compensation Premature Closing of VA Office in the Philippines Could be Costly : Report to the Chairman, Committee on Veterans' Affairs, House of Representatives, 1993, pages 23-24
  9. "AFPSLAI posts assets of P4.14 billion". philstar.com. Retrieved 2020-06-08.
  10. Fitz (2013-07-09). "Information About AFPSLAI". Ready To Be Rich. Retrieved 2020-06-08.
  11. AFPSLAI loses P500M, May 4, 2006, GMA New Online
  12. Gang busted foar P2-M AFPSLAI loan caper; 8 fall by Jerry J. Alcayde, September 2, 2017, Manilla Bulliten
  13. Cops get 30-day reprieve on loan payments by Christopher Lloyd Caliwan, April 6, 2020, Philippine News Agency
  14. "Armed Forces and Police Savings and Loans Association, Inc". www.afpslai.com.ph. Retrieved 2020-06-08.
  15. AFPSLAI Scholarship and Educational Assistance Program, afp.mil.ph
  16. "Armed Forces and Police Savings and Loans Association, Inc". www.afpslai.com.ph. Retrieved 2020-06-08.
  17. DND RECEIVES GYM EQUIPMENT FROM AFPS, page 9, Defense Chronicle, Volume 2, Issue 2, 2018 and DND receives gym equipment from AFPSLAI, dnd.gov.ph
  18. Donations from Various Domestic Sources, page 2
  19. "Armed Forces and Police Savings and Loans Association, Inc". www.afpslai.com.ph. Retrieved 2020-06-08.
  20. "Armed Forces and Police Savings and Loans Association, Inc". www.afpslai.com.ph. Retrieved 2020-06-08.
  21. "PRO9 Partners with AFPSLAI and AFP in Peace Drive". pro9.pnp.gov.ph. Retrieved 2020-06-08.
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