Administration insists on improvements at Labor

The Babauta administration defended the Department of Labor, saying the agency has been making improvements to its processing procedures since fiscal year 2003.

Press secretary Peter Callaghan issued the statement yesterday in reaction to a government audit report showing that the Commonwealth lost $512,410 in revenues because the Labor Department had been receiving alien work permit applications without ensuring that the correct amount of fees were collected.

“[The] chart [accompanying the Office of the Public Auditor’s report] clearly shows rapid improvement in labor processing procedures in FY 2003 and 2004. These improvements mirror the changes made and improvements cited in the immigration processing systems as well,” Callaghan said.

Although OPA’s audit report covers the period from 1999 and 2004, the chart indicates that the losses in revenue started in FY 2000 and peaked in FY 2002.

Callaghan added that continued improvement was expected as the labor automation project begins later this month.

According to Callaghan, the project involves the development of a computer system to consider and approve labor permits. Once completed, all labor permit documents will be scanned and electronic records developed, allowing secure record keeping. All permitting issues will also be completed electronically.

Once fully installed, the automated system will allow the department to receive and issue permits on line as well.

“These reforms and improvements will completely alter the current process for labor permits. It will permit greater accuracy and increased response, and will also increase security. Any attempts at fraud will be reflected in the computer records,” said Callaghan.

According to the June 6, 2005 OPA report, Labor accepted applications for 2,293 workers for which the required fees were not collected by Finance.

In one official receipt, for example, Labor accepted $50 from an unnamed firm for the payment of an alien registration. But as OPA found out, 99 permit applications were later submitted using the same receipt as reference for payment. This resulted in a loss of $22,275 for this receipt alone.

Acting Labor secretary Dean Tenorio agreed with OPA’s findings regarding the improper use of vouchers presented to the department.

“We have carefully examined the report and recommendations, and the methodology used in arriving at your conclusions. We have no disagreement with your approach to the investigation and have no basis on which to challenge the conclusion,” Tenorio said.

He also said the automation project should resolve OPA’s concerns.