THE Commission on Audit has recommended that the Philippine Public Safety College (PPSC) initiate legal action against its accounting and financial officials over delayed remittance of P38.6 million premium contributions to the Philippine Health Insurance Corporation (PhilHealth), including sums deducted way back in December 2016.
Because of the delay, PPSC incurred P38.233 million in penalties, including P8.52 million for 2021 alone.
Affected by the late remittance were the PhilHealth benefits of PPSC regular employees, job order hires, and cadets of the Philippine National Police Academy (PNPA). The PNPA was previously under PPSC until 2019 when its management was transferred to the PNP.
Scrutiny of remittances showed the bulk of unpaid contributions were delayed by two to four years.
An inhouse fact-finding investigation traced the problem to a job order personnel who was assigned to process the remittances to PhilHealth, Government Service Insurance System (GSIS), and Home Development Mutual Fund (HDMF or PagIBIG Fund).
The PPSC said that although not holding a regular position, the JO hire was tasked to handle deposits of the checks to PhilHealth and to secure a copy of the official receipt.
But due to PhilHealth’s shift to electronic filing system, the bank reportedly refused to accept check payments from the PPSC. Without any monitoring of the transactions, the checks merely kept piling up for several years without any being credited to the proper accounts.
The audit team said the accounting and finance officials of the PPSC are also responsible for the delays and liability for the penalties.
“The investigation report also highlighted the accountability and responsibility of the supervisory officers related to the controversy, i.e. the Chief Accountant …and the Chief, Financial Management Division (FMD),” the COA stressed.
It said the Chief Accountant had the duty “to supervise the recording and remittance of the PhilHealth premium contribution” while the FMD head “has supervision and control over the Accounting Division.”
Auditors noted that the abnormal increase and accumulation of PhilHealth obligations would have been revealed sooner had the two officials ensured the regular preparation of a Bank Reconciliation Statement (BRS).
“The penalties imposed by PhilHealth due to non-remittance are the result of gross negligence and inefficiency of the concerned officers and/or employees. Hence, the government must not bear the burden of paying it,” the COA pointed out.
The PPSC management said it has asked PhilHealth to simply waive the penalties imposed on the delayed remittances.
Likewise, it assured the COA that a preliminary investigation against erring officers and employees has already started.
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