“Matuwid na Pamamahala Tungo sa ARMM na Masagana’t Mapayapa”

Thursday, September 27, 2012

Sec Kulayan to brief Senate committee on remittance mess


BRIEF ON THE UNREMITTED CONTRIBUTIONS AND LOAN AMORTIZATIONS OF DEPED-ARMM
By Atty Jamar M. Kulayan, DepEd-ARMM Secretary


In the first week of the current administration, Officer-in-Charge Regional Governor Mujiv S. Hataman invited GSIS Trustee Mario J. Aguja and other GSIS officials for a conference with the school heads. During that conference, Trustee Aguja revealed that the burgeoning unpaid remittances and loan amortizations of DepEd-ARMM already amounted to the tune of 1.7B, as follows:


1.         UNREMITTED CONTRIBUTIONS UNDER THE FIRST MOA IN 2004.
1.     Period covered        -           July 1997 to December 31, 2003
2.     Amount:
                                                                                                            Principal                                               495,105,205.47
Interest                                                 473,596,585.31
Total                                                     968,701,790.78
            After reconciliation, the principal amount was reduced to             450,963,264.03
3.     Term of payment           -           15 years
4.     Interest rate                   -           12%
5.     Funding                        -           Whatever source

2.         In FY 2006, Congress appropriated 250M for the payment but only 127M was utilize by the DBM solely for the payment of principal. The remaining 123M returned to the National Treasury.

3.         Since the MOA signing, only 301,936,481.00 (127M from the amount appropriated by Congress and 174M from DepEd Savings in prior years) was paid. The last payment under this MOA was in April 2009 because of the dispute on the application of payments. DBM and DEPED-ARMM both wanted the payment to be applied to the principal. However, GSIS applied the payment to both the principal and the interest on the running balance, as follows:


Principal
Interest
Total
Reconciled Balance
450,963,264.03
473,596,585.31
924,559,849.34
Less payments
66,169,816.14
235,766,664.86
301,936,481.00
Running Balance
384,793,447.89
237,829,920.45
622,623,386.34


2.         UNREMITTED LOAN DEDUCTIONS for 17 months, e.g. October, November and December of 2001; November 2003; March, September, October, November and December 2004;  and February, March, April, May, June, July, August and September 2005.
Year
Principal
Interest
Total
2001
41,769,054.86
104,107,530.29
145,876,585.15
2002
15,932,724.95
32,081,312.63
48,014,037.58
2003
99,397,564.21
179,949,206.39
279,346,770.60
2004
152,755,168.17
251,256,050.18
404,011,218.35
Grand Total:
309,854,512.19
567,394,099.49
877,248,611.68
                                           .                 
          These figures do not include the loan deductions from DepEd Basilan personnel for April 2003 to September 2003 that were not remitted to GSIS. These figures are subject to reconciliation.

3.         NON-MOA ACCOUNT.      -           Aside from item number 1, the contribution covering the period from January to March 2004 were both not paid and not included in the MOA of 2004, amounting as follows:


Period Covered
Principal
Interest
Total
PS/GS
Jan. 2004 - Mar. 2004
64,712,281.20
126,256,284.59
190,968,565.79
Basilan
Jan. 2004 - Oct. 2005

16,771,415.85
16,771,415.85
Marawi
Jan. 2004 - June 2004

5,410,912.14
5,410,912.14


64,712,281.20
148,438,612.58
213,150,893.78

4.         BASILAN AND MARAWI ACCOUNT FROM REGIONS IX AND XII.           - Aside from DepEd-ARMM’s obligations, there are also contributions or loan amortizations being collected from ARMM teachers who were previously under DepEd-IX for Basilan personnel and DepEd XII for Marawi City personnel, as follows:


Period Covered
Principal
Interest
Total
Basilan
May 2003 -June 2004
9,940,765.67
30,200,420.27
40,141,185.94
Marawi City
Jan. 2003 - Dec. 2003
435,494.17
1,140,483.09
  1,575,977.26


10,376,259.84
31,340,903.36
41,717,163.20


5.         Thus, the TOTAL AMOUNTbeing collected from DepEd-ARMM is now as follows:


MOA
622,623,386.34
NON-MOA
213,150,893.78
LOAN AMORTIZATIONS
877,248,611.68
BASILAN (DepEd IX)
40,141,185.94
MARAWI (DepEd XII)
1,575,977.26

1,754,740,055.00


6.         PENALTY FOR DELAYED PAYMENTS BY DBM.     -           As agreed upon in the first MOA between GSIS and DEPED-ARMM, it is DBM who will remit to the GSIS the contributions, both government and personal share, of the teachers of DepEd-ARMM. However, there are instances when DBM incurs delay in remitting the contributions for which GSIS imposed penalty. Thus, aside from interests, we also owe them:


Period of Delay
Penalty
April 2004 to Sept. 2011
160,391,188.56


7.         ACTIONS TAKEN BY PRESENT ADMINISTRATIONS.        -           The present administration already entered into three (3) separates MOA with GSIS. The First MOA was for the Service Record Updatingso that billings from GSIS will be accurate and excess payments made by DepEd-ARMM in the previous years may be applied as payment to the total amount due from DepEd-ARMM. The Second MOA was for the payment of the Basilan Account under Item No. 3. The Third MOA was the settlement of theMarawi Account under Item No. 3.

8.         UNPAID PAGIBIG CONTRIBUTIONS AND AMORTIZATIONS.      -           Aside from these unpaid GSIS contributions and loan amortizations, Home Development Mutual Fund recently wrote DepEd-ARMM for the collection of around 243M, viz:


PERIOD

PREMIUMS

LOAN AMORTIZATIONS
PENALTY
TOTAL
GOV’T.
PERSONAL
SUBTOTAL
PREMIUMS
AMORTIZATIONS
SUB-TOTAL
OCT-DEC’01
121,600.00
5,365,000.00
5,486,600.00
26,480,598.27
21,104,976.00
12,425,950.59
33,530,026.59
65,497,224.86
OCT-
DEC’02

430,800.00
430,800.00

1,499,184.00

1,499,184.00
1,929,984.00
JAN-
SEP’03

1,292,400.00
1,292,400.00

4,264,920.00

4,264,920.00
5,557,320.00
SEP
DEC’04
542,400.00
8,245,700.00
8,788,100.00
24,282,657.46
24,362,559.00
11,229,494.71
35,592,053.71
68,662,811.17
JAN
NOV’05
1,904,000.00
12,502,400.00
14,406,400.00
33,452,704.30
36,517,008.00
14,198,249.06
50,715,257.06
98,574,361.36
JAN
NOV’06
1,145,000.00

1,145,000.00

2,465,238.00

2,465,238.00
3,610,238.00
G. TOTAL
3,713,000.00
27,836,300.00
31,549,300.00
84,215,960.03
90,212,985.00
37,853,694.36
128,066,679.36
243,831,939.39


9.         UNPAID PPSTA CONTRIBUTION AND AMORTIZATIONS.                        -           The Philippine Public School Teachers Association (PPSTA) is also collecting 31M from DepEd-ARMM.
UNREMITTED LOAN PAYMENT

APR-DEC.’03

JAN-JUL’04

JAN-SEP’05

TOTAL
BASILAN
1,193,222.94
1,084,366.39
182,305.56
2,459,894.89
MARAWI
4,981,529.24
617,800.55
682,343.01
6,281,672.80
OTHER DIVISIONS


23,190,563.92
23,190,563.92

6,174,752.18
1,702,166.94
24,055,212.49
31,932,131.61
           
10.       GRAND TOTAL:

MOA
622,623,386.34
NON-MOA
213,150,893.78
LOAN AMORTIZATIONS
877,248,611.68
PENALTY (due to late payments made by DBM)
160,391,188.56
HDMF
243,831,939.39
PPSTA
31,932,131.61
GRAND TOTAL
2,149,178,151.36




           


                     





   Out of the grand total of 2.1B, the amount of 1.2B refers to penalty and interest alone.


11.       RECOMMENDATIONS:

            These figures are already beyond our capacity to pay. Aside from these amounts, we are still trying to solve the unclaimed backwages, salary differentials and adjustments of our teachers. Thus, we respectfully pray that immediate actions be undertaken by Congress, GSIS and DBM to help us solve these problems. More than the teachers who are still in active service but whose morale and dedication to service are affected, our retired teachers are in the losing end. They received less than the amount actually due them for retirement because their creditable service was reduced corresponding to the actual number of their unremitted contributions and are receiving lesser monthly retirement benefits. Unless we immediately act on these problems, they may not be able to fully enjoy the fruit of their long and dedicated government service. 

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