Quantcast
Latest Stories

SSS criticized over excessive loans, delinquencies

Pension fund ‘extending loans in excess of reserve limit’

By

The Commission on Audit has called the attention of the Social Security System to the excessive amount of loans it extended as well as its significant delinquency rate.

The COA likewise took the SSS to task over its failure to post over P3 billion worth of loan payments made by members.

In its updated audit report on the 2011 financial statement of the SSS, the COA said the state-owned pension fund failed to observe the limit on loans it could grant to members.

Under the SSS charter, outstanding loans to members should not exceed 10 percent of its reserve fund.

The COA said the SSS had P43.23 billion in outstanding loans as of the end of last year. That amount was P11.9 billion higher than the supposed ceiling.

“Member loans of P43.23 billion (net) exceeded the 10-percent limit of the investment reserve fund by 38.05 percent, or P11.915 billion,” COA said.

The commission also found that about 87 percent of SSS’ receivables were delinquent. The COA said the heavy exposure of the SSS to delinquent accounts is causing lost potential income from viable investments that the pension fund manager could have engaged in.

“[The SSS should] take a comprehensive approach in addressing the problem on delinquent accounts to limit member loans at reasonable levels,” the COA said in its report.

The audit agency also said the SSS should address the problem of unposted regular loan payments by members, valued at P3.47 billion.

The amount represents bulk of unregistered loan payments made to the SSS. The COA also said that there was P921 million worth of unposted real-estate loan payments.

In response to the COA report, the SSS admitted that its outstanding loans are higher than the ceiling but explained that it has already implemented measures to address the issue.

SSS President Emilio de Quiros Jr. said outstanding loans to members have been in excess of the limit for years, even prior to his assumption to office in 2010. He said that over the past two years, the SSS has been implementing programs that condone penalties for delinquent loans with the aim of reducing the outstanding loans and the delinquency rate.

“We have already brought [the proportion of excess loans] down. We have initiated condonation programs and generated loan payments from those initiatives,” De Quiros said.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Commission on Audit , Loans , Philippines , Social Security System , SSS loans

  • sabinah

    dapat lang kung may kalokohan dito, ang SSS dapat mag-higpit.  Matagal ng balita yang problema ng ghost loans halos lahat ng govt financial institutions like PAGIBIG, GSIS, govt banks   etc,  malalaki pa ang amount, COA should concentrate on these! For legitimate borrowers, in a way, SSS has been lending a helping hand for its struggling members for another chance to repay due to high cost of living, unemployment, etc. Despite of its weaknesses biased towards its members,  maraming natulungan ang SSS.  Sa pamilya ko lang, ang tuition fees kinuha ko sa SSS loan, ang aming bahay through housing loans, at ngayon, ang aking retirement.  And just recently, one should experienced the oustanding and caring services  extended by the head and staff of SSS acquired assets dept., and you wont regret being a SSS member. 



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Fire engulfs apartments in Sampaloc
  • Messy warehouse belongs to Unicef, WFP, says Soliman
  • Suspected Abu Sayyaf rebels release hostage
  • New meaning of Easter in Samar
  • Colombia hopes to share Garcia Marquez remains
  • Sports

  • Warriors beat Clippers in playoff opener
  • Pacquiao top Mayweather contender
  • Rain or Shine, Ginebra clash for No. 6 spot
  • Ateneo eyes quarterfinal spot vs Benilde
  • Style contrast marks OneFC ‘Rise of Heroes’
  • Lifestyle

  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Joe de Venecia visits the Queen Mother of Cambodia
  • Fashionistas flock to designer’s wedding
  • Entertainment

  • Show-biz celebrities’ other choices of summer getaway
  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Business

  • Top-selling insurance agent opens her dream café
  • Connecting and transacting with one another
  • Building wealth for health
  • Why Mandaue Foam buys, rather than rents, space
  • A workplace of new possibilities
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Asia seeks Obama’s assurance in territorial spats
  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Filipinos in US poised for success
  • Visas for priests and other faith leaders
  • DOH to continue tracking co-passengers of OFW infected with MERS virus
  • Marketplace