[Bawal Yan!] Failure to remit employees’ GSIS payments

The Sandiganbayan has ruled that a former Mayor of Occidental Mindoro is guilty of violating the GSIS law for not remitting over P4 million in contributions and loan repayments of municipal employees during his term.

The mayor concerned was sentenced to two to four years in prison. Additionally, he was imposed a fine of P10,000 and barred from holding any public office as a result of the verdict.

The Sandiganbayan ruled that the local chief executive:

…willfully, unlawfully and criminally fail, refuse, withhold and delay the turnover or remittance of the GSIS premiums and contributions in the aggregate amount of P4,808,283.63 covering the period September 20, 2015 to May 20, 2016.

The said amount was deducted and withheld every month from the monthly compensation of all municipal officials and employees of [the LGU]

In defense, the former mayor refuted the allegations and contended that his subordinates were accountable for remitting GSIS contributions.

However, the Sandiganbayan upheld that, as the former mayor, he bore ultimate responsibility for the actions of his subordinates.

What to Avoid?

• Failure to remit what is due to the GSIS

According to the Penal Provisions of RA No. 8291:

Any employee, who after deducting the monthly contribution or loan amortization from a member’s compensation, fails to remit the same to the GSIS within thirty (30) days from the date they should have been remitted under Section 6(a) shall be presumed to have misappropriated such contribution or loan amortization and shall suffer the penalties provided in Article 315 of the Revised Penal Code, and in addition shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government.

The heads of the offices of the national government, its political subdivisions, branches, agencies and instrumentalities, including government-owned or controlled corporations and government financial institutions, and the personnel of such offices who are involved in the collection of premium contributions, loan amortization and other accounts due the GSIS who shall fail, refuse or delay the payment, turnover, remittance or delivery of such accounts to the GSIS within thirty (30) days from the time that the same shall have been due and demandable shall, upon conviction by final judgment, suffer the penalties of imprisonment of not less than one (1) year nor more than five (5) years and a fine of not less than Ten thousand pesos (P10,000.00) nor more than Twenty thousand pesos (P20,000.00), and in addition shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government.