Thursday, June 19, 2008

Just when you thought you had 'em, they get right back atcha

Remember my problem with Government Price in utilizing my Development Fund allocation? how actual gov't price is more expensive than the retail price, which is ridiculous 'coz it should be the other way around?

Well, I thought I was able to beat the system (meaning, maximizing the use of my Development Fund without the SOP/'Bukol' usually associated with public bidding).

Or so I thought.

It all started when a Barangay requested for piglets as a livelihood project.  As it turns out, there are no accredited suppliers of pigs or piglets in the government's list of accredited suppliers.  Since i wanted to help this barangay, I asked how we could grant the request absent any gov't accredited supplier.  I was told I could request the release of the amount it would cost to purchase the piglets in the form of Financial Assistance.

One piglet costs 1,500 here.  So if I want to give 4 piglets it would cost me 6,000, right?  So I asked how much mababawasan sa Development Fund ko (y'know, the SOP/bukol).

Wala daw.  The gov't will just give a check in the amount of 6,000 to the beneficiary.  No SOP. No VAT.  No 'bukol.'


I finally found away to avoid the pesky VAT and SOP--through the form of Financial Assistance!

I was so excited I told my staff to process the other requests via Financial Assistance.  A long-barrel typewriter that cost 13,500 at gov't price could sell at 10,000 retail.  A set of 6 bikes that would cost 22,000 at gov't price could sell at 12,500 retail.  Consturction materials that would cost me 20,000 at gov't price would be just 15,000 retail.


Think of all the savings I could make!

Think of the other barangays I could help because of the savings!

And then the bombshell...

When I secretary finally started processing the first three requests for financial assistance, she was told that there was a limit.  Up to 8,000 lang daw.  Mapipilit pa ang 10,000.  But anything above kelangan bidding na uli.

Oh, man!

Just when you thought you had 'em, they get right back atcha.

I knew it was too good to be true.

So, balik VAT/SOP nanaman ako.  Ano magagawa natin, di ba?

Back to the drawing board. 

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