DILG orders mayors to cancel permits of Kapa Community Ministry International Inc

June 17, 2019

Following President Rodrigo Duterte’s order to shut down the operations of Kapa Community Ministry International Inc., the Department of the Interior and Local Government (DILG) orders city and municipal mayors to cancel  business permits of Kapa “to prevent the public from being duped into investing their hard-earned money into an apparently fraudulent investment scheme.”

DILG Secretary Eduardo Año on Monday also urged all city and municipal local chief executives to refrain from issuing business permits in favor of Kapa, its allied subsidiaries, and organizations and deny all existing applications for permits of the group.

The DILG’s directive came after the Securities and Exchange Commission (SEC) revoked Kapa’s certificate of registration and secured over P100-million of its assets in accordance with the asset freeze order issued by the Court of Appeals.

Duterte earlier ordered the Philippine National Police and National Bureau of Investigation to close operations of Kapa after receiving complaints from the public that the group is enticing them to donate at least P5,000 in exchange for a monthly return of 30 percent.

In a memorandum issued last June 13, 2019, the DILG chief said it is the duty of city and municipal mayors under Republic Act 7160 of the Local Government Code “to issue licenses and permits and suspend or revoke the same for any violation of the conditions upon which said licenses or permits had been issued pursuant to law or ordinance.”

He said a business or mayor’s permit is not a right but a privilege granted by the State as the Supreme Court has ruled a business permit is subject to the regulation of the State and may be revoked or withdrawn if there is cause to do so.

“In the case of Kapa, it is very clear that it has abused the privilege given by the government as it has ventured in an enterprise which promised profits that it can not fulfill,” he said.

Año advised the public to be wary of get-rich-quick schemes because they will just be disheartened.

Kapa started operations three years ago in Bislig, Surigao del Sur and expanded across Mindanao before reaching Visayas and Luzon. DMS