New pay system implemented for more officials

An additional 17 government organisations will now pay salaries directly into officials' bank accounts, after an agreement was made with the Banque pour le Commerce Exterieur Lao (BCEL).

The state-owned bank's Director General Sonexay Sitphaxay yesterday signed the agreement with representatives of the Lao National Assembly, President's Office, Prime Minister's Office, Ministry of Foreign Affairs, Ministry of Justice and Ministry of Planning and Investment.

Also on board are the ministries of Energy and Mines, Labour and Social Welfare, and Public Health, Office of the Party Central Committee, Foreign Relation Committee of the Party Central Committee, Propaganda and Training Board of the Party Central Committee, Inspection Committee of the Party Central Committee, Personnel Office of the Party Central Committee, Kaysone Phomvihane Museum, Veterans' Federation, and Lao National Tourism Administration.

BCEL will charge its customers about 24,000 kip a year for the salary transfer service and could earn several hundred million kip annually.

Ms Vilaythong Sounalath, from the Party Central Committee Office, said the new service was a historical milestone and would help state employees easily access their salaries.

She said it would be a great improvement on the past delivery of government salaries, which was very difficult due to several factors, including corruption.

Ministry of Finance Deputy Head of Office, Mr Sanya Phaseuth, said the agreement between the bank and the organisations would begin in June and provide the bank with more than 5,100 new accounts.

The ministry is encouraging state organisations to use the bank service, and Mr Sanya said he hoped all government departments would be using the system by 2010.

He said the change to the payment system was initiated in response to a resolution of the Eighth Party Congress, which stipulated the government should address problems relating to government pay schemes, especially regarding timely payments.

Mr Sanya said many organisations wanted to deliver their employees' salary through the bank but they needed to improve their accounting systems.

The Ministry of Finance was the first organisation to use the new salary delivery service in October and it determined this system was better than officials receiving their salaries in cash from the finance office of each ministry.

There will now be a total of 22 organisations using this system.

By Vientiane Times
(Latest Update May 09, 2008)