Government officials from the provinces of Maguindanao and Tawi-Tawi are facing charges over non-remittance of payment to the Home Development Mutual Fund or Pag-Ibig Fund and the Government Service Insurance System (GSIS), thus depriving the employees of their benefits.
The Office of the Ombudsman affirmed its earlier ruling that it found probable cause to indict the Mayor of South Upi town in Maguindanao, Abdullah Campong, and Municipal Treasurer Onofre Natividad for the municipality’s failure to remit Pag-ibig premiums from April 2007 to November 2007 and taxes withheld on employees’ compensation from January 2007 to December 2007.
Campong and Natividad are facing eight counts of violation of Presidential Decree (PD) 1752 (An Act Creating the Home Development Mutual Fund) as amended by Republic Act RA 7742, and 12 counts of violation of Republic Act No. 8424 (An Act Amending the National Internal Revenue Code).
PD No. 1752 mandates employers to remit contributions within 15 days from the date the contributions were collected while RA 8424 provides that payment of income tax withheld on compensation shall be made on or before the 10th day of the month following the month in which the taxes were withheld.
“The Ombudsman ruled that Campong and Natividad are primary fiduciary officers responsible for making sure that Pag-ibig contributions and BIR (Bureau of Internal Revenue) taxes are promptly paid and remitted,” the Office of Ombudsman Conchita Carpio-Morales point-ed out in a statement.
Aside from the Maguindanao officials, the Ombudsman also charged the former mayor of Simunul town in Tawi-Tawi province, Benzar Tambut, and former municipal treasurer Frieda Inni with 25 counts of violation of Section 6(b) in relation to Section 52(g) of RA 8291 (The GSIS Act of 1997) for their failure to remit the insurance premiums deducted from the salaries of the municipal employees on time.
The Ombudsman found out that from February 2006 to May 2010, the local government unit failed to remit GSIS premiums amounting to P4.9 million within the 30-day allowable period in 22 instances and completely failed to remit insurance premiums three times.
The GSIS Act provides that the heads of offices and the personnel involved in the collection of premium contributions and other accounts due to the GSIS are liable when there is failure, refusal or delay in the remittance of such accounts within 30 days from the time that they are due and demandable.