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Abra Mayor, Treasurer indicted for failure to remit GSIS and Pag-ibig contributions
10 July 2013, Press Release Ombudsman

         THE Office of the Ombudsman ordered the filing of criminal charges against a former mayor in Abra province and a treasurer in connection with the alleged underpayment/ non-payment of municipal employees’ contributions to the Home Development Mutual Fund (HDMF) or Pag-ibig and the Government Service Insurance System (GSIS).

            In a 15-page resolution, Ombudsman Conchita Carpio Morales found probable cause to indict former municipal mayor Lovelyn P. Domes-ag and municipal treasurer Dorinda B. Bumogas, both of the municipality of Peñarrubia, Abra for 15 counts of Violation of Section 5, in relation to Section 23, of Presidential Decree (PD) No. 1752, as amended by Republic Act No. 7742, for failure to remit the employer’s and the employees’ contributions to Pag-ibig from October 2002 to December 2003.

              For failure to remit the exact or correct amount of contributions to the GSIS from July 1998 to June 2002, Domes-ag and Bumogas were also indicted for 48 counts of Violation of Section 5(c), in relation to Section 52(c), of Republic Act No. 8291 (GSIS Act of 1997).     

            Ombudsman Morales also found enough evidence to indict Domes-ag and Bumogas for 18 counts of Violation of Section 5(c) in relation to Section 52 (g) of RA No. 8291 for failure to pay and remit to the GSIS the employer’s and the employees’ contributions from January 2003 to June 2004.

            The Resolution found that from July 1998 to June 2006, only the period from July 2002 to December 2002 was accounted for.

            The case stemmed from the criminal complaint filed by Ruben M. Amboni and several others stating that the GSIS and Pag-ibig premium contributions and loan amortizations due the Philippine National Bank (PNP) and the Rural Bank of Villaviciosa (RBV) were regularly deducted from their respective salaries, but the same were not fully or not at all remitted to the respective agencies and institutions.

            Complainants averred that they received demand letters from PNB and statement of accounts from GSIS and Pag-ibig, but when they brought these matters to Domes-ag and Bumogas, the two officials refused to explain where the collected funds were spent.

            It was revealed that during the terms of Domes-ag as municipal mayor (1998-2004), with Bumogas as then municipal treasurer, the GSIS contributions which were due worth P4,075,251.19 had not been fully paid or remitted at all, as reflected in the Summary of Social Insurance Contributions Collectibles.

With respect to loan payments for Pag-ibig, however, the Office held that “there is a dearth of evidence on record to support the allegation that deductions for loan payments were made but were not remitted and misappropriated.”

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