THE Commission on Audit has warned the Social Security System that its reserves could be negatively affected by its non-collection of P92.492 billion from delinquent employers in 2022.
In an audit report, COA said that out of the total amount, P83.826 billion or 90.63 percent went uncollected for over five years.
The total amount of non-remitted premium contributions were from 466,881 employers, including penalties and damages.
In other COA reports:
- State auditors flagged the National Housing Authority (NHA) over delays in the completion of projects with a total cost of over ₱7.7 billion in 2022.
- COA has flagged the Department of Tourism (DOT) over P6.1 million worth of “irregular, unnecessary and excessive” expenditures last year.
Under the Social Security Act of 2018, the SSS coverage of employees is not prejudiced by the failure or refusal of employers to pay or remit their contributions.
“Hence, the SSS is still bound to pay members benefits corresponding to the uncollected premium contributions, which may negatively affect
the reserves of the SSS,” COA said.
It reiterated its recommendations in the previous years on the compliance to the SSS Guidelines on the Handling of Non-Compliant and
Delinquent Employer Accounts Referred for Legal Action.
A total of 10,989 cases with corresponding net collectible amounting to P5.393 billion were filed in courts, prosecutors’ offices, or the
Social Security Commission.
The SSS management welcomed the recommendation of COA to take a deeper look at the status of delinquent accounts.
“The concerned groups/offices will continue to monitor and review the status of delinquent accounts and intensify collection efforts, as
recommended,” it said.
State auditors noted uncollected and delinquent member loan accounts totaling P77.089 billion from 2018 to 2021 had hampered the
reinvestment of the funds to earn income for the benefits of members and their beneficiaries.
“The substantial amount of delinquent loan accounts not only affects the financial health of the SSS but also undermines the goal of
providing comprehensive social security protection to its members,”COA said.
SSS said it had reiterated to concerned offices the various member loan instructions related to the audit observation.