New payroll system worries Capitol employees with loans

CEBU, Philippines - The new payroll system of the Provincial Capitol is reportedly causing worries among its employees who have existing loans with the Cebu CFI Community Cooperative, Inc.

On October 15, the payroll of the Capitol officials and employees shall be withdrawn through Automated Teller Machine (ATM) with the United Coconut Planters Bank (UCPB).

Under the system, officials and employees who have loans with the CFI must have at least P5,000 each month in the  “ATM” as take home pay, regardless of how much their salary would be due to loan amortization.

In effect, the CFI can no longer collect the total amount due for the loan amortization consequently making some borrowers delinquent.

The CFI, in return, would automatically impose the two percent interest due for unpaid balances for a particular period.

“Kami man mga empleyado ang naipit ani ba. (We, the employees, would be the ones caught in between),” said a high ranking Capitol staff who refused to be named.

She said that the borrower may pay directly the loan amortization to the cooperative but she said others may be tempted to use the money in other purposes.

She said that a lot of borrowers already have zero balances during pay day because of their respective loans.

Acting Provincial Treasurer Emmanuel Guial could not be reached for comment as of press time as he still had a meeting with Provincial Administrator Mark Tolentino.

The Provincial Board is now reviewing the memorandum of agreement entered into by the Province of Cebu and the CFI on the salary deduction.

The Provincial Legal Office already stated that the PB can initiate to rescind the agreement.

Some members of the PB alleged that the Capitol is just being used by the CFI as its collecting arm.

This prompted the CFI, in a paid advertisement, to call for sobriety and to carry on the rule of law in raising questions on the agreement.

Disturbed by the said advertisement, the PB is inviting the CFI officials in their session, to shed light on the issue and to answer questions from the body.—(FREEMAN)