#Gabon Haro on the indebtedness of public officials

 

Meeting within the Council of Ministers on 19 September, the government decided to removing withholding to protect state employees against the debt spiral.

The purchasing power of the average Gabonese seem to worry the government. Thus, in its meeting of September 19, the Cabinet decided to "suppression of withholding taxes (to) protect state officials against excessive debt which is likely to destroy all the efforts to improve the purchasing power of Gabon. "Accordingly, the government will begin formulating a "plan to restructure the banking and financial system of the state.

But what is it exactly? To understand this measure, it must be remembered that the "tax is the amount withheld at source by the creditor of a person while the latter owes a third. The person responsible for withholding, recovering such payment to the creditor of the debtor. So is there any dues to social security funds or compulsory health insurance are deducted at source by the employer on the remuneration of its employees. "In everyday reality, the tax results in levies paid by merchants and other credit agencies, who do not hesitate to increase by 4 to 5 times the cost of public employees' bank accounts. A practice that has left many agents in the vicious cycle of debt. There are even some who are no longer able to receive a good salary at month end. Others have come to mortgage more than 60% of their income.

According to a study conducted by the management of the balance, 29,524 employees are indebted while 2,660 are in debt beyond the norm. The study also revealed that 49.95% of indebted servants are part of the forces of defense and security, 21.66% are carried to the Ministry of Education and 6.48% are in service to the Department of Health. Among those who were taking more than 60% of monthly income, the officers of the defense forces and security account for 43% and the Department of Justice 57%. "Young official, I undertook to furnish my studio. So I was contacted a Lebanese merchant who had been presented to me and I chose: stereo, TV and VCD, wardrobe, bed and mattress. I do not deny that for 3 years I was not able to fully pay the debt. The guy took its money directly to pay and I could do nothing. I worked all the time as if I was still unemployed. Because I did not have e crumbs that do not even allow me to pay my taxi, "said one official. "This decision will ensure that people support themselves and plan their lives," he says. "The state will no longer collect money at source from the salaries of officers for the reserve for credit institutions. With the banking operation launched by the Ministry of the Budget, it is the agent of the state to deal directly with the bank to pay its debts, "says, Apollinaire Moukila Maka, Communication Advisor to the Minister of Budget . Meanwhile, the backlog of borrowed money owed by state agents will be donated.

                                                                           Friday, September 26, 2014, Gabonreview