Concepcion urges government to pay SGS

Key sectors of the business community have started to come out supporting the government’s decision to find ways to pay Societe Generale de Surveillance (SGS) which has remained unpaid since late 1998 for its pre-shipment services.

Industrialist Raul Concepcion, chairman of the Federation of Philippine Industries, said the more than P6 billion the government owes SGS must be paid although he suggested the government seek a discount.

Last week, Makati Business Club executive director Guillermo Luz said it would be in the interest of the Philippines to pay up since local businesses would find it difficult to transact if valid and legitimate debts are not paid by a Philippine unit.

Some customs employees and officials have been vocal in opposing SGS since it started to check the veracity of declarations of incoming shipments covered by its pre-shipment contract.

Concepcion said a pre-inspection service is "definitely" needed although he said if one were to be hired anew, it would be the private sector paying and that ways must be found to make sure it is not opposed by some customs people.

Finance Secretary Isidro Camacho had said the government will definitely pay SGS but is looking at ways to pay within the government financial capability.

SGS so far has said it understands the country’s financial position and is willing to work out a mutually acceptable settlement.