Buñag sacked from BIR, deputy is appointed OIC

Malacañang on Wednesday sacked Bureau of Internal Revenue commissioner Jose Mario Bunag and appointed deputy commissioner Lilian Hefti as officer-in-charge of the collection agency. A Radio dzBB report said Bunag was relieved of his position after the agency repeatedly failed to achieve its collection goals under his watch. The Palace expects Hefti, a lawyer and certified public accountant with 30 years of experience in public service, to turn around BIR's performance. Meanwhile, a television report said a Finance department study showed that weakness in tax administration led to the collection shortfalls, at a time when the robust economy should have led to bigger tax takes for the agency. Bunag has been offered an ambassadorial position to either Norway or the Netherlands, the reports said. The government on Tuesday reported that it had a budget deficit of P1.7 billion in May 2007, a turn-around from the P5.8-billion surplus it declared in the same month last year. The May deficit brought the government's budget for the first five months of the year to a P41.8-billion deficit. This made Finance officials admit that it would be hard pressed to achieve its official P63-billion budget deficit target for the full year. Mrs Arroyo signed Executive Order 625 in May, directing a reorganization of the BIR. The order prompted speculations that the commissioner may soon be on his way out. In June however, Arroyo took back her order and signed EO 625-A, amending the first directive. - GMANews.TV