SC acquits mayor in GSIS remittance case

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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 case arose in 2003 when the GSIS informed Talaue of unpaid employee contributions totaling P12,071,451.22 for the years 1997 to 2003.

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.

The Supreme Court decision, which comes after Talaue filed a motion for reconsideration, emphasized that there was insufficient evidence to prove his intent to violate the GSIS Act.

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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