COA rejects SSS’ justification for fat bonuses
The
Social Security System’s claim of sterling performance that formed the
basis for officials to reward themselves fat bonuses has been rejected
by the Commission on Audit.
In the 2012 annual audit report of the state-run insurance firm for private workers, COA noted serious performance issues against the SSS including the snail-paced payment of death, disability and retirement claims by its members.
This developed as Bayan Muna Reps. Neri Colmenares and Carlos Isagani Zarate filed House Resolution No. 369 asking the House Committee on Good Government and Accountability to conduct a legislative inquiry into the grant of Performance Based Bonus of P10 million to SSS officials and employes.
Colmenares and Zarate noted that while the SSS board was quick to reward themselves fat bonuses, it has continuously refused to back the increase in pension for its members under House Bill 175.
The two solons chided the SSS board for rejecting the bill on the ground that “it does not have enough funds to do so” despite its own admission that retiree senior citizens’ pension is below poverty line.
In a news forum Thursday, SSS vice president Susie Bugante said critics of the agency are “barking up the wrong tree” as she pointed out that it was the Governance Commission on GOCCs that cited their excellent performance last year.
However, COA disagreed with the said findings, as it noted serious flaws in the operations of the SSS.
“Slow processing and payment of death, disability and retirement claims did not meet the commitment of SSS of providing prompt, convenient and meaningful social protection service to the members and their beneficiaries,” COA said.
The audit agency also asked the SSS management to swiftly take legal steps in collecting over P367 million in premiums and penalties from 139 delinquent corporations and employers which have been remiss in their responsibility under the SSS law.
In 2011, COA also expressed dissatisfaction over SSS performance when it assailed its officials for imposing on borrowers interest on loans that exceeded P788.8 million.
Asked for her reaction, Bugante apologized for the slow processing of members benefits last year but blamed a glitch in the computer system as the culprit.
“It is our commitment that by the end of this year we will go current and all backlogs will be erased,” she said.
Meanwhile, Gabriela Women’s Party Reps. Luzviminda Ilagan and Emmi De Jesus asked the SSS to open its books as they joined the call for an investigation into the financial management situation of the firm.
Ilagan and de Jesus said they have been receiving complaints after SSS issued Circular 2013-0003 in April 2013. The circular was suspended in July following protests but it threatened to disenfranchise some two million retiring SSS members who lacked the necessary contributions from receiving their pension who would instead receive their contribution in lump sum amounts.
“Now it is not just the circular that prompts us to look into the financial status of the SSS. Amid reports of fat bonuses and proposals to increase workers’ contributions it is but high time that we scrutinize how the SSS has been managing its finances,” said Ilagan.
She asked: “ Why does the SSS need to impose this increase in workers’ contributions? Bakit kailangang magtaas ng singil sa manggagawa pero nagpapasarap naman sa malalaking bonus ang mga nagpapatakbo nito [Why increase the members’ fee while the officials enjoy huge bonuses]?” said Ilagan.
Earlier, the SSS announced the implementation of increases in workers’ contributions. In President Aquino’s State of the Nation Address in July, Aquino hinted at the need to increase contributions in order to raise some P141B up to 2014 in order to lessen its P1.1T unfunded liabilities.
“Through the years the SSS has become more of a burden to workers and retirees rather than an institution that can be relied on for their benefits,” commented De Jesus. http://www.mb.com.ph/coa-rejects-sss-justification-for-fat-bonuses/
In the 2012 annual audit report of the state-run insurance firm for private workers, COA noted serious performance issues against the SSS including the snail-paced payment of death, disability and retirement claims by its members.
This developed as Bayan Muna Reps. Neri Colmenares and Carlos Isagani Zarate filed House Resolution No. 369 asking the House Committee on Good Government and Accountability to conduct a legislative inquiry into the grant of Performance Based Bonus of P10 million to SSS officials and employes.
Colmenares and Zarate noted that while the SSS board was quick to reward themselves fat bonuses, it has continuously refused to back the increase in pension for its members under House Bill 175.
The two solons chided the SSS board for rejecting the bill on the ground that “it does not have enough funds to do so” despite its own admission that retiree senior citizens’ pension is below poverty line.
In a news forum Thursday, SSS vice president Susie Bugante said critics of the agency are “barking up the wrong tree” as she pointed out that it was the Governance Commission on GOCCs that cited their excellent performance last year.
However, COA disagreed with the said findings, as it noted serious flaws in the operations of the SSS.
“Slow processing and payment of death, disability and retirement claims did not meet the commitment of SSS of providing prompt, convenient and meaningful social protection service to the members and their beneficiaries,” COA said.
The audit agency also asked the SSS management to swiftly take legal steps in collecting over P367 million in premiums and penalties from 139 delinquent corporations and employers which have been remiss in their responsibility under the SSS law.
In 2011, COA also expressed dissatisfaction over SSS performance when it assailed its officials for imposing on borrowers interest on loans that exceeded P788.8 million.
Asked for her reaction, Bugante apologized for the slow processing of members benefits last year but blamed a glitch in the computer system as the culprit.
“It is our commitment that by the end of this year we will go current and all backlogs will be erased,” she said.
Meanwhile, Gabriela Women’s Party Reps. Luzviminda Ilagan and Emmi De Jesus asked the SSS to open its books as they joined the call for an investigation into the financial management situation of the firm.
Ilagan and de Jesus said they have been receiving complaints after SSS issued Circular 2013-0003 in April 2013. The circular was suspended in July following protests but it threatened to disenfranchise some two million retiring SSS members who lacked the necessary contributions from receiving their pension who would instead receive their contribution in lump sum amounts.
“Now it is not just the circular that prompts us to look into the financial status of the SSS. Amid reports of fat bonuses and proposals to increase workers’ contributions it is but high time that we scrutinize how the SSS has been managing its finances,” said Ilagan.
She asked: “ Why does the SSS need to impose this increase in workers’ contributions? Bakit kailangang magtaas ng singil sa manggagawa pero nagpapasarap naman sa malalaking bonus ang mga nagpapatakbo nito [Why increase the members’ fee while the officials enjoy huge bonuses]?” said Ilagan.
Earlier, the SSS announced the implementation of increases in workers’ contributions. In President Aquino’s State of the Nation Address in July, Aquino hinted at the need to increase contributions in order to raise some P141B up to 2014 in order to lessen its P1.1T unfunded liabilities.
“Through the years the SSS has become more of a burden to workers and retirees rather than an institution that can be relied on for their benefits,” commented De Jesus. http://www.mb.com.ph/coa-rejects-sss-justification-for-fat-bonuses/
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