Salaries will be paid: Official

The National National

LAE urban local level government (LULLG) employees have been assured that their salaries will be paid once the necessary documents are signed, Lae city authority (LCA) chief executive officer Neil Ellery says.
Ellery made the announcement on Monday, following last Friday’s grievances shared among LULLG employees after going without pay for the last two fortnights.
Ellery clarified that the indemnity agreement had no hidden agendas despite what some employees claimed.
“The agreement contains the resolution which was agreed on by the LCA, LULLG and Internal Revenue Commission (IRC), following a meeting, in relation to the LULLG operating bank account being garnished,” he said.
Ellery said the garnishee order by IRC on the LULLG operating account had affected wages and salaries payments for its employees.
“The only way the LCA could be protected from taking the liabilities of LULLG was to have this agreement signed,” he said.
Ellery appealed to city manager Joel Kolam to sign the form in order for LCA to pay LULLG employees and not to hold them (LCA) responsible for any liabilities.
The meeting which took place on June 26 between IRC, LULLG and LCA called for:

  • The number of employees that need to be paid their salaries and wages;
  • The K250,000-plus currently in LULLG account to be remitted to IRC immediately;
  • THE LCA to pay the current salaries and wages tax for all LULLG employees as and when the payments are made from the LCA account;
  • THE LCA to pay the salaries and wages for the approved LULLG employees structure from the LCA account instead of sending the money to the garnished LULLG bank account; and,
  • depending on cash flow, LCA be on a payment structure to routinely pay the tax debt (the subject of garnishee) on the LULLG account.

Ellery said IRC had approved the LULLG salaries and wages to be processed and paid through the LCA’s bank account.