COA: DepEd failed to remit P3.1B GSIS premiums, loan amortizations in 2023

The Department of Education (DepEd) failed to remit P3.1 billion worth of Government Service Insurance System (GSIS) premium contributions and loan amortizations that were deducted from salaries of teaching and non-teaching personnel as of the end of 2023, the Commission on Audit (COA) said.

In its 2023 annual audit report on the agency, COA said the unremitted GSIS premium contributions and loan amortizations already deducted from salaries of teaching and non-teaching personnel covered those in the central office and 12 regional offices of the DepEd. 

Based on the same COA report, Region 8 posted the highest amount of unremitted GSIS premiums and loan amortizations at P669.7 million, followed by Region 9 at P591.9 million. 

The rest of the regions registered the following amount of unremitted GSIS premiums and loan amortizations:

• Region 3 with P518 million
• Region 4A with P309 million
• Region 5 with P271.9 million
• Region 10 with P234.97 million
• Region 2 with P103 million
• Region 12 with P99.7 million
• Region 4B with P90 million
• Region 11  with P71.9 million
• Region 7 with P68.8 million
• Region 13 with P30 million
• Region 1 with P21.6 million
• Central Office with P11.7 million
• Cordillera Administrative Region with P7.6 million and
• National Capital Region with P15,612.15

Only Region 6 posted no balance of due GSIS remittance.

“The failure by the DepEd Offices to remit the premium contributions deprived their employees of the opportunity to avail of loan privileges, and earn yearly dividends and such other benefits offered to all GSIS members thereby causing undue injury to them,” COA said.

Vice President Sara Duterte concurrently served as Education Secretary from July 2022 to June 2024.  She resigned from her post "out of concern for teachers and students."

She has since been replaced by former Senator Sonny Angara, who was appointed in July this year.

GMA News Online reached out to lawyer Michael Poa, DepEd spokesperson during the time of Duterte, for comment.

Poa, now spokesperson of the Office of the Vice President, said he would ask about the matter and that he does not have a copy of the COA report.  

"I will ask about this but better to ask DepEd directly. I do not have a copy of the COA report. I am no longer in DepEd so I cannot easily get details also," he said.

Reduced unremitted dues

The same COA report, however, recognized that some DepEd offices already significantly reduced their unremitted GSIS dues come 2024.

Region 3 reduced its balance of unremitted dues to P36 million from P518 million, while Region 4B’s balance is down to P75.95 million from P90 million.

Region 11’s balance was also reduced to P27.6 million from P71.9 million, while Region 13 was able to bring it down to P26.9 million from P30 million.

COA said it made the following recommendations to address the huge backlog in unremitted GSIS dues:

• remit all withheld premium contributions and loan payments to the GSIS within the timelines set
• impose sanctions on employees responsible for the non-remittance thereof
• reconcile the due to GSIS account and effect the necessary adjustments, if any, among others

In response, the DepEd said it will comply with all of COA's recommendations, and that it is committed to discuss with the Division Office Superintendents during the upcoming Management Committee Meeting the transfer of remitting the contributions and loan amortizations to GSIS as well as Home Development Mutual Fund to their offices.

Likewise, the DepEd said an ad hoc committee at the divisions and the regional offices will be required to prioritize the resolution of the unremitted balances.

The department also said the Payroll Unit, the Accounting Section, and the Cash Section are timely in their monthly remittances to GSIS except for the remittances rejected by GSIS due to clarificatory issues of some personnel that need to be cleared by the Authorized Agency Officer.  —LDF, GMA Integrated News