Capitol says it’s firm that sends late billing-A A +A
Thursday, October 3, 2013
BEST Source Professionals Inc. (BSPI), an outsourcing company that supplies hospital workers, is late in submitting its billings in Capitol, records at the Provincial General Services Office (PGSO) showed.
The good news, however, is that Capitol yesterday waived the required credit line certificate from BSPI.
A credit line certificate is a document wherein the bank guarantees that the outsourcing company can pay its workers’ salaries for two months.
BSPI workers received their Aug. 1 to 15 salary. They have yet to receive their Aug. 16 to 31 and September pay.
PGSO Head Eva Encabo said BSPI collection documents and the waiver, issued yesterday afternoon, are now being processed at the internal audit office. From there, the document will go to the accounting office for the governor’s approval, before the document goes to the treasurer’s office for release in the bank.
Nestor Garcia, BSPI president, in an earlier interview, said he is hoping to collect the funds this week so they could pay the salaries of their 400 workers in hospitals before the weekend or early next week.
But Encabo finds it unfortunate.
“Maghulat sila kanus-a makabayad ang Capitol sa ila una sila mobayad sa ilang trabante
(They wait until Capitol pays them before they pay their workers),” she said.
Encabo is amenable to the idea of waiving the required credit line certificate, just to speed up collection and payment of the outsourced workers’ salary.
But BSPI need to have capital back-up. She said it is stated in their contract that they should not rely on their Capitol collection before they give their workers pay.
SPI’s billing is late by a few months.
BSPI billed Capitol for their January services last June 14; February billing was submitted only last June 26; March billing last July 23, and April billing last Aug. 23.
Gov. Hilario Davide III is displeased with the outsourced company’s fiscal management, as he is having second thoughts in renewing its contract with the Province.
Capitol sought the services of outsourced workers to complement its limited workforce, to go beyond provisions of Sec. 325 of Republic Act 7160 or the Local Government Code of 1991, on personnel services.
“Personnel Services” refers to appropriations for the payment of salaries, wages and other compensation of permanent, temporary, contractual, and casual employees of the local government unit.
Section 325 sets a ceiling on the total appropriation for personnel services, that it must not exceed 45 percent of the total annual income from regular sources realized in the next preceding fiscal year.
To go beyond this 45 percent limit, Capitol hired outsourced workers and charged their salaries to maintenance and other operating expenses (MOOE), a Capitol finance officer who requested anonymity said.
Published in the Sun.Star Cebu newspaper on October 03, 2013.