Akbar: GSIS lifts prov’l government’s suspension PDF Print E-mail
Thursday, 25 August 2011 16:26

Basilan Gov. Jum Akbar yesterday announced that the employees of the provincial government can now again avail of the loan privileges and other benefits with the Government Service Insurance System (GSIS).

Akbar said this came after she, on behalf of the provincial government, and GSIS executive vice-president Consuelo Manansala, have signed a Memorandum of Agreement (MOA) lifting the suspension of loan privileges and other benefits of the employees of the provincial government of Basilan.

Akbar and Manansala signed the MOA last Monday at the former’s office after the provincial government offered to settle its “arrearages by way of converting the same amount into a restructed obligation to be paid on installment basis.”

The GSIS has suspended the loan privileges of GSIS members from the provincial government of Basilan after it failed to remit to the GSIS the compulsory premium contributions of its personnel (employer’s and employee’s share) for the period from January 1998 to June 2011 and the interest thereon for late payment amounting to P32,524,800.12.

Akbar said the obligation of the provincial government to the GSIS has been reduced to P16,737,830.96 after the GSIS “as a result of negotiation of the repayment schedule, the GSIS agrees to condone 50 percent of the interest due on the obligation.”

“The restructure obligation shall be paid by the provincial government of Basilan within a period of 24 months with the interest rate of 12 percent per annum on a diminishing balance,” the MOA stated.

“The provincial government of Basilan shall pay the first monthly installment on the 10th day of the month following the signing of this Agreement and succeeding monthly installments shall be due on or before the 10th day of every month thereafter until the Restructured Obligation shall have been fully paid,” the MOA stated.
“Over and above the payment of the restructured obligation under this Agreement, the provincial government of Basilan shall regularly remit to the GSIS the current compulsory premium contributions deducted from the salaries of its employees and pay its share within the first 10 days of the month following the month to which the contributions apply pursuant to Section 6 (b) of R.A. No. 8291.” the MOA further stated.

The agreement signed by Akbar and Manansala “shall take effect immediately upon signing and shall be binding upon the parties, their respective signing officials and their successors until the restructured obligation is fully paid and extinguished.”

Akbar said she entered into such agreement on behalf of the provincial government as authorized under Sangguniang Panlalawigan Resolution No. 2011-70 dated May 18, 2011.

Also, Akbar said she entered into such agreement so that the employees of the provincial government could avail of the loan privileges and other benefits under the GSIS.