NG to pay its P14-B arrears to GSIS this year

The National Government (NG) will definitely settle its P14-billion arrears with the Government Service Insurance System (GIS) within the year, Budget Secretary Emilia T. Boncodin said yesterday.

The amount represents premiums collected from employees of both national and local government units (LGUs) from 1993 to 1997.

Boncodin said the amount will be paid this year in Treasury bonds, not in the form of a fixed rate Treasury bonds (FXTB) as provided for under a memorandum of agreement (MOA) signed in May last year.

A technical committee composed of representatives from the Bureau of Treasury (BTr) and the Department of Budget and Management (DBM) had informed GSIS that there was a technical problem and that they still have to work out certain accounting procedures with the Commission on Audit (COA).

Boncodin gave her assurance that the arrears will be paid within the year, and that the Treasury bonds will allow GSIS to realize some earnings. "It is a government to government transaction, so there would not be any complications."