Lupon LGU Passes Ordinance to Safeguard 4Ps Beneficiaries from Financial Exploitation
The Local Government Unit (LGU) of Lupon has enacted Municipal Ordinance No. 21-02-2026, known as the "4Ps Cash Card Protection Ordinance," to shield beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) from predatory lending practices. This legislation explicitly forbids the pawning or use of automated teller machine (ATM) cards or cash cards as loan collateral, aiming to ensure that financial assistance reaches its intended purposes.
Strict Prohibitions and Penalties Under the New Law
Under the ordinance, it is strictly prohibited to accept 4Ps ATM cards or any related documents as loan collateral, charge service fees or interest linked to the cash card, or engage in pawning activities involving the card. Additionally, 4Ps beneficiaries are barred from using their cash cards or program documents as collateral. Violators face severe penalties, including warnings, suspension of grants, and potential removal from the program. Lenders or financial institutions found complicit may incur fines, imprisonment, or cancellation of business permits.
LGU Lupon Vice Mayor Christian Lawrence "Chrence" Go emphasized the significance of this measure in a Facebook post dated February 25, 2026. He stated that these actions demonstrate a continuous effort to strengthen institutions, the economy, education, and social justice through collaborative efforts between the Sangguniang Bayan and the executive branch.
Regional Collaboration and Broader Initiatives
The Department of Social Welfare and Development-Davao Region (DSWD-Davao) has highlighted that the passage of this ordinance is part of ongoing regional initiatives to protect 4Ps beneficiaries from exploitation. In collaboration with Provincial Local Government Units (PLGUs) and other LGUs, DSWD-Davao is working to ensure that 4Ps assistance is utilized properly and effectively.
This ordinance in Lupon aligns with a broader regional effort, where several cities and municipalities in Davao de Oro, Davao del Norte, and Davao del Sur have already implemented similar legislation. Notable examples include the Municipality of Sta. Maria in Davao Occidental and Tagum City in Davao del Norte, which have passed comparable ordinances to safeguard 4Ps beneficiaries.
DSWD Guidelines and Policy Support
The DSWD has long cautioned 4Ps beneficiaries against pawning or using their ATM cards as loan collateral. According to the Grievance Redress System (GRS) guidelines on beneficiary misconduct, cash cards are not permitted to be used as collateral in loans. This guideline is reinforced by the approved policy of the Pantawid National Advisory Committee (NAC), which stipulates that inappropriate utilization of grants—such as pawning, using them as collateral, selling Cash Cards or Pantawid Pamilya IDs, or spending grants on non-essential items—is subject to appropriate sanctions.
As of December 31, 2025, DSWD-Davao reported a total of 257,059 4Ps household beneficiaries in the region, underscoring the importance of these protective measures to prevent financial exploitation and ensure the program's integrity.
