1. On April 18, 2020, Secretary Leonor Magtolis Briones issued Office Memorandum OM-OSEC-2020-006 reminding all DepEd employees to refrain from using ATM Payroll cards as collateral for loans or engaging in the ATM Sangla Scheme or ATM Card Pawning.

2. With the suspension of payments granted for loans with the Government Service Insurance System (GSIS), Pag-IBIG Fund and DepEd Provident Fund for a period of three (3) months from April 2020 to June 2020, as provided in their respective guidelines, and the subsequent refund by DepEd Provident Fund of the loan amortization deducted from the April 2020 payroll and the suspension of deductions for loan payments from the May 2020 salary payroll as well as the early release of salaries for April 2020, it is expected that additional cash will be credited to the ATM accounts of the employees; hence, the advice in the said memorandum against the use of their individual ATM Payroll Card as collateral for loans or engaging in the ATM Sangla Scheme is amplified.

3. The memorandum also reminds all concerned employees that the practice of surrendering ATM cards as collateral for loans is prohibited by the DepEd Terms and Conditions for Accreditation under the Automatic Payroll Deduction System. The Bangko Sentral ng Pilipinas also noted ATM Card Pawning as a dangerous scheme since it exposes the borrower to identity theft and unauthorized use of personal data for unlawful activities and it unduly promotes over-indebtedness.

4. To ensure that teachers and other personnel of the Division are not encouraged to engage in the aforesaid schemes, Division and school officials are reminded not to entertain loan companies in their respective offices and schools which are involved in ATM Sangla Scheme or ATM Card pawning.

5. Enclosed for reference is the copy of Office Memorandum OM-OSEC-2020-006.

6. Immediate dissemination of this memorandum is earnestly desired.

0927 – Division Memorandum No. 74, s. 2020