Kapa which stands for Kabus Padatoon ( enrich the poor), a group lead by Pastor Joel Apolinario  grabbed headlines recently in the Philippines.  The President, no other than Pres. Duterte in a televised interview ordered the CIDG and NBI the stoppage of the operation of the said group because according to him, it is a ponzi scheme and therefore, a scam.

Kapa Investment Sheme, Mom Finance Blog

Kapa Investment Scheme

Kapa International Ministry is the official name of the organization and it is registered as a religious organization. In other words, they will not be taxed as provided in the Philippine constitution.

As with any religious organization, they ask for donation from their members.  However, they promised to return 30% of their donation dubbed as “blessings”.

Many people are enticed to join the organization, from grassroots level like farmers, minimum wage earners, teachers, police officers even doctors, lawyers.

Why People Fall Prey to this Scheme?

  • the desire for fast money
  • the promise of easy money
  • the potential of earning high

The Good, The Bad and the Ugly of Kapa Investment

The Good

Well, obviously, receiving 30% of ones investment monthly is no brainer.  However, by looking at it, you will surely say that it’s too good to be true and it is probably false.

Living in the island of Mindanao where this investment scheme proliferates, I have seen countless people who have been helped by this scheme for it is already around for 3 years now. Many who live below poverty line see it as a ray of hope amidst their impoverished situations.

The Bad

Many people who are members of the organization seems to be relying on it alone.  They put all their stake in this organization. Of course, on a financial standpoint, this is very risky.  It is also very noticeable that many are flaunting money over social media as if they have an overflowing stream of money.

I also observed that many people become indolent.  They just wait for their monthly blessings to arrive and do nothing on the side.

The Ugly

Given the very high percentage rate of return offered by the Kapa organization, it is affecting the economy.  Laborers are resigning from their jobs.  Bank deposits are being withdrawn for people are transferring their funds to kapa for a higher yield.

The law has taken its course and now it is ordered closed.  A lot of those who put money on the organization are now on limbo especially those with big amounts.

Final Thoughts

If it is too good to be true, then it is false.  This is exactly the words of president Duterte and he as the president does his mandate to protect the people from getting victimized from this schemes.

People must be very vigilant on where to put their hard-earned money.  Learn to work hard and be patient.  God bless to those who are financially and emotionally affected by this circumstances. The only way out is through.  Rise above the mess and learn from it.