Bungling bureaucrats who do not collect on debt to Government could be hit in their own pockets, The Royal Gazette can reveal.

For the Ministry of Finance is to consider surcharging slacker civil servants who fail to fight like tigers on the cash collection front.

And independent financial watchdog Larry Dennis has threatened to publish the names of 60-plus firms -- the worst offenders in the overdue payment of payroll tax -- in a list of shame next year as part of a new crackdown on debt.

He also said that cheating bosses should face criminal prosecution as well as civil action to recover the cash.

The news came after Auditor Mr. Dennis revealed in his latest report on the state of the public purse that a massive $57.7 million in taxes are in arrears -- including more than $5.5 million in employee-contributed payroll tax.

And a reply from the Ministry of Finance warned: "Given the severity of the problem in the departments, the Ministry of Finance will give serious consideration to surcharging civil servants who do not perform their assigned duties.'' The reply added: "The role of the Debt Collection Office, its procedures and systems are to be reviewed.'' Neither Bermuda Public Services Association president Betty Christopher nor general secretary Ed Ball Jr. could be contacted for comment last night.

The moves came after independent Auditor Larry Dennis called for a new get-tough policy on outstanding bills.

Mr. Dennis also called for extra cash to be pumped into the Debt Collection Office to "supplement and in some cases supplant'' the work of individual Government departments in chasing down debtors.

And he said: "It is increasingly important that Government departments supplement the requirements of financial instructions with documented and strictly adhered to procedures, supported by reliable financial reporting to ensure their debts are collected promptly.'' And he added the Accountant General's office should get tough with departments and insist they forward all outstanding debts within the specified 90-day period for legal action.

But he added that the Accountant General could "provide written dispensation to departments who can demonstrate the ability to pursue the collection of their past-due debts effectively''.

He added: "Debt collection procedures throughout Government should be reviewed.'' And Mr. Dennis said: "Monthly statements and progressively forceful warnings should be an integral part of the collection process.

"Collection efforts should be consistent and constant and remedy provided in law should be more timely and more aggressively pursued.'' He added: "Where applicable, legislation should provide for the imposition of interest on outstanding amounts owed to Government.'' Minister of Finance Eugene Cox was yesterday off the Island and could not be contacted for comment.

The reply from the Ministry of Finance said a new debt collection strategy had been prepared and would be further developed this year.

TAXES TAX