COA to look into agencies’ compliance to GSIS act | Inquirer Business

COA to look into agencies’ compliance to GSIS act

By: - Reporter / @bendeveraINQ
/ 05:14 AM August 25, 2017

The Commission on Audit will now report and slap sanctions on government agencies that do not remit their employees’ contributions and loan payments to state-run pension fund Government Service Insurance System.

In a statement, the GSIS said COA chair Michael G. Aguinaldo had ordered all COA auditors through Memorandum No. 2017-15 issued on Aug. 8 “to report delinquent agencies that are remiss in paying premium and loan amortization and those that fail to remit on time,” as mandated under Section 6 of Republic Act No. 8291 or the GSIS Act of 1997.

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“All these will be included in COA’s annual audit report so that penal sanctions may be imposed upon the responsible officials and employees who violated the law,” the GSIS quoted Aguinaldo as saying.

The GSIS said its chair, Francisco Duque III, and officer-in-charge Nora Malubay-Saludares earlier sought COA’s help to ensure prompt collection of premiums and loan repayments.

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“The GSIS officials appealed to COA to check agencies’ compliance in paying the required GSIS premiums, employees’ compensation contributions and amortization of various GSIS loans on time,” it said.

“We laud COA in assisting us to address the nonpayment of premiums and loans which has been a long-standing concern of the GSIS because it compromises the benefits of GSIS members. Loan balances, if left unpaid, will balloon to unmanageable amounts that will significantly reduce the benefits of members and leave them in precarious situations when they retire or separate from government,” Duque said.

“The GSIS has to boost its collection efficiency to strengthen its capabilities to fund the future benefits of its members and pensioners,” Duque added.

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TAGS: COA chair Michael G. Aguinald, Commission on Audit, employees’ contributions and loan payments, GSIS
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