THE Supreme Court has acquitted former Sto. Tomas, Isabela mayor Antonio Talaue of charges related to the non-remittance of Government Service Insurance System (GSIS) contributions for municipal employees.
In a decision written by Associate Justice Samuel Gaerlan, the Supreme Court’s Special First Division ruled that Talaue was not responsible for remitting GSIS contributions, overturning a Sandiganbayan conviction.
The high court ruled that under Republic Act 7160, or the Local Government Code, the responsibilities of municipal mayors as “chief executives” do not include remitting GSIS contributions.
The unpaid remittances led GSIS to file a case for collection and damages against the municipality, with a resulting liability of P25,444,429.92 established in a 2008 memorandum of agreement (MoA).
The Office of the Ombudsman held Talaue criminally liable under the GSIS Act of 1997, which penalizes government heads for non-remittance of contributions.
Talaue argued that the Department of Budget and Management (DBM) was responsible for withholding funds for GSIS premiums, and that the 2008 MoA reclassified the liability as an outstanding loan.
Additionally, Talaue’s mistaken belief that DBM deductions had covered the premiums was found to negate any intent to cause non-remittance.
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