Facing charges in the Sandiganbayan for violating Republic Act 8291 or the Government Service Insurance Act of 1991 are former Dinapigue mayor Diosdado Donato and municipal accountant Francisco Medrano.
In a seven-page resolution issued last Friday, the Ombudsman said Donato and Medrano should be indicted for violation of Section 6 (b) in relation to Section 52 (d) of RA 8921 for their "failure to remit for 34 times" the GSIS contributions of the employees of the Dinapigue municipal government from August 1998 to June 2001.
The graft case stemmed from a complaint filed by incumbent Dinapigue Mayor Renato Candido.
In his complaint, Candido alleged that during their term from 1998 to 2001, Donato and Medrano allegedly failed to remit the GSIS contributions of the municipal employees although deductions had been made on their monthly salaries.
The Ombudsman learned from a demand letter dated June 20, 2003 by Sergio Dalisay, manager of the GSIS’ Cauayan City, Isabela branch, that the total unremitted contributions of the municipality had amounted to P4,118,105.57.
In their counter-affidavit, Donato and Medrano claimed that the municipality failed to remit the GSIS premiums due to a budgetary deficit, resulting from the delay in the release of its internal revenue allotment (IRA) and big expenditures for developmental projects in 1999 to 2001.
Despite this, Donato and Medrano, however, said they still managed to remit P3,693,612.74 in GSIS contributions during the three-year period.
But the Ombudsman said the claims of the two former officials would not exonerate them from any criminal liability.
It cited Section 6 (b) of RA 8291 as stating that "each employer shall remit directly to the GSIS the employees’ and employers’ contributions within the first ten days of the calendar month following the month to which the contributions apply."
"The remittance by the employer of the contributions to the GSIS shall take priority over and above the payment of any and all obligations, except salaries and wages of its employees," the provision further states.
According to the Ombudsman, this violation of RA 8291 is punishable by six months and one day to six years in jail and a fine of not less than P3,000 but not more than P6,000.
Violators also face "absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government," it added.