WHEN Gov. Juan N. Babauta lifted the salary cap for some of his appointees, a number of government officials (who are not Republicans) and private individuals raised their eyebrows.
They said increasing personnel salaries during these tough economic times violates the governor’s own austerity measures. Besides, they said, some of the appointees don’t deserve it.
Others, like Sen. Pete P. Reyes, came to the governor’s defense.
The governor needs to effectively deliver community services, and one way to do it is to hire and compensate the right people for the job, he said.
Meanwhile, the Office of the Public Auditor said it would investigate several government personnel actions that involved granting salaries beyond the cap.
These investigations are separate from the regular government-wide compensation audits also conducted by OPA.
Even the House of Representatives said it would take a closer look into the government’s hiring practices.
Lt. Gov. Diego T. Benavente says he and the governor welcome OPA’s investigation, assuring the public that the administration does not intend to violate nor railroad existing statutes in granting increased salaries to certain employees.
“The governor and I do not want to be doing (something) that would violate the statute,” Benavente said.
House Speaker Heinz S. Hofschneider—while recognizing the governor’s right to choose the people he thinks would be effective in the delivery of public service—raised concern over the salary level granted to the governor’s secretary. Celina R. Babauta will receive $45,000 a year—or $15,000 more than the salary cap for secretaries.
The governor said he approved the lifting of the cap for this position, to make it similar to that of the individual who previously held the post. But Donna Cruz was more than just a secretary answering phone calls—she’s also a paralegal.
Doctors, nurses, policemen and other emergency personnel also deserve higher salaries, but they just have to wait for the economy to turn around before they get their raise.
Collection efforts. Were it not for the $79.2 million in uncollected payments from its patients and other clients, the Commonwealth Health Center need not depend on the government for funding.
While the Department of Public Health said it made progress in collecting receivables in the past few years, more efforts are needed.
In fiscal year 1999, CHC collected $8 million from its clients. The following year, the collections went up to $11.8 million.
At the end of FY 2001, CHC collected $16.1 million, and targeted a $16.7 million collection by the end of FY 2002.
CHC and its collection agency need to step up their collection efforts before the amount of receivables double up.
It is, however, sad to note that it is the government that owes the highest amount to CHC.
As of end-2001, Medicaid owes CHC a total of $27.9 million. This program is funded by the federal and local governments.
The government-run Group Health and Life Insurance Plan—which is under the Retirement Fund—is yet to settle its $24.2 million obligation to CHC.
Other government agencies owe CHC $1.9 million.
Now we know why it’s taking CHC so long to collect.


