OAS MICRO FINANCE -OAS POVERTY ALLEVIATION PROGRAM
Mid-Year Report
July 20, 2009

Background

Oas Micro Finance - Oas Poverty Alleviation Program has steadily taken roots since its inception in November 2008. It has transgressed borders and kept the linkages active to realize a cooperative undertaking of Oasnons at home and abroad in helping Oas in whatever possible way they can.

It has created a platform of protocols to be adhered to and from which initial operations were launched. This includes: Rationale (vision, mission, objectives) Organization and Management (core groups: officers and members, delineation of duties and responsibilities) Mechanics (rules and regulations) Financial and Strategic Partners, Strategies (Marketing and Financial) and Projects under the lending and ancillary programs.

A medium for effective interaction within the Core Groups and the stakeholders at-large has also been established. By now, there is a pattern shift created among Oasnons unlike before when they barely communicate with each other regarding concerns back home; www.oasnon.org is a communication highway that bridges Oasnons anywhere.

There is transformation going on in Oas, that of empowering the poor. Never have they been able to borrow capital from banks to improve their lot without collateral. The loan sharks have helped to some extent, but his simply sucked up all the profits that they made and so they stayed even poorer. There has been no other option provided to them, until the micro finance network came into existence. OMF-OPAP has provided them loans to finance their small economic ventures at a very low cost, affordable terms and without any collateral (a way that banks normally don’t lend). For more details go to: www.oasmicrofinance.org, a website dedicated to OMF-OPAP.

After creating the operating platform, fund raising was initiated to generate funds to finance the operation. Two waves of solicitation via Internet have been launched and initially set the local operations going. The worldwide financial meltdown has severely impacted the fund raising campaign, but little by little, Oasnons are recovering and once again opening their generous hearts to help the poor.

Activities

OMF University: In order to give strength and confidence to the volunteers and take active role in this venture, the local working group had been organized and an orientation on micro finance was conducted. The micro finance technical committee underwent a one-day seminar provided by the Alternative Systems for Community Development, Inc (ASCODE).

After which a  series of echo-seminars were conducted to expand the group’s knowledge of their respective roles and functions as identified. They also adopted the following basic financing programs, namely:

1. The micro-business financing program - lending at the public market
2. The enterprise-development program - group lending for projects such as agrifarms
3. The livelihood enterprise competition - a barangay-based livelihood enterprise competition

The related expenses for the organization aspect covered the seminar materials, payment for the speakers, venue rentals, LCD projector rental, meals and snacks for participants.

Community Awareness: The launching of the OMF-OPAP On-Site was held on May 8, 2009. The local officers joined the parade where OMF-OPAP banners were distributed. Sixty-six banners with ‘OAS CAN DO IT’ and www.oasnon.org printed on them were given out. The officers were provided with T-Shirts, Visor Caps and banners as part of the information and community awareness campaign.

OMF-OPAP officers were also present at the Balik-Banwa Forum held at Masaraga Restaurant. Copies of a 9-page OMF-OPAP Primer were distributed among the participants; 100 sets were prepared and 40 of these were given out. One hundred-twenty coin purses (alternates as cell phone holders)were also prepared as OMF-OPAP souvenirs for prospective supporters, donors, beneficiaries who can help solicit or give solicitations. There were very few balikbayans at the forum, so the rest of the items were kept for future use.

Strategic planning for the initial launching was also held in various occasions. Aside from the On-Site officers, the three front Managers were present, namely: Mel Romano, Ben Ricasio and Greg Conde.  Jun Rex coordinated the coverage of all the activities for the websites.

Resource Mobilizations: Another on-site meeting was held in early June to underline the urgent need to mobilize OMF-OPAP and make it operational utilizing the funds solicited for the poverty alleviation program projects. The groups were invited to submit proposals seeking possible financial assistance to projects that could contribute to enterprise development (both products and services) and help impact the local economy. The social mobilization strategy as envisaged by the group would jumpstart the micro lending with guaranteed investment recovery.  

A) Micro Lending: the strategy is to start micro-lending in an area where our volunteers exercise control and have high market command as well as supervision. In view of this, beneficiaries who are in Oas micro businesses that are directly dependent on the household maidservants of Oasnons were identified. This makes the salaries of the maidservants as a quasi-collateral to guarantee poor borrowers closely related to them (father or mother, sisters or brothers, etc.). Such a scheme will provide the social collateral needed in the start up lending. The following are the first thirteen (13) poor micro-entrepreneurs benefitting from the initial OMF-OPAP funding:

B) Pilot Agrifarm Project: this project has not been implemented because of the unpredictability of the weather in Oas due to climate change. There has been an off and on typhoon situation in the area casting doubts on the outcome of the project specially because the site is known to be flooded in times like this. This project is being held in abeyance until climate at site improves.
There is another option to this project that of implementing this project in another area where it is not flooded or by choosing crops that can thrive even during the rainy season.

C) Others: these are the projects that cannot be implemented because of lack of funds. There is a need to intensify fund raising in order to maximize the efforts being put in by our partners in service at site. It is not viable for them to focus son this work for reasons that it might not be able to sustain their operation if lending is limited to only a few thousands.

Let us invite more Oasnons to send in their donations at this time when their help is sorely needed. It is when it counts most.

They can also finance their relatives in Oas by making OMF-OPAP as overseer of their funds to be loaned to their favored beneficiary. Most monetary help given by overseas sources becomes unpaid debt and uncollected dues that end up souring the relationship between the benefactors and loan recipients. This can be improved if they send their money instead to OMF-OPAP and appoint a loan recipient. OMF-OPAP, however, does not carry any liability on such funds, as it is only an overseer of the money. It does not participate in choosing the recipient beneficiary, which normally is investigated for good practices or mal-practices in business.

Such program, however, should fall within the purview of the projects, which OMF-OPAP is focused on, that is to contribute for their relatives to succeed in contributing their share to improve the economy of Oas through livelihood development. With their money and the OMF-OPAP services, we hope to hand-in-hand tackle the issue of poverty in Oas.
 

 Cash Flow Statement as of June 15, 2009:

1. OMF Account:
Cash-In-Flows:

Cash in Bank-Deposit:

Cash-Out-Flows:
1. Seminar Expenses (12-12-08 to 13)      5,950.00
    Various Expenses (12-04-08)                  643.50
    Seminar Venue & Food Expenses         3,996.20
2. Admin. & Public Awareness Expenses (01-03-09 to 05-04-09)   7,928.75
                (On-Site Launching & Community Awareness Expenses)
Fund Transfer to OPAP initial PNB deposit from OMF  10,000.00

Total Cash Out-Flows      28,518.45

Total Cash On Hand & In Bank     81,047.55
Cash in Bank                             80,462.00
Cash on Hand Should Be                 585.55

11.  OPAP Account:   
Cash-In-Flows:
Fund Transfer to OPAP initial PNB deposit from OMF  10,000.00
Not Yet Received are:
Ramon & Rosanna Bustamante  $50
OLCP      $550
: (Louella Lapsley (Anonymous #1)-$100
Rustum  Nepomuceno (Anonymous#9)-$250
Rommel & Rubylynn Perillo-$200)
Greg Conde (special project initiative) -P5,000