Solon wants delinquent employers penalized

A solon is urging the Social Security System (SSS) "to spare no effort" in criminally prosecuting the owners of business establishments that fail to remit mandatory contributions.

"Non-remittance of Social Security contributions is a criminal offense that should be prosecuted using the full force of the law," Rep. Joseph A. Santiago (NPC, Catanduanes) stressed, adding that violators "do not deserve leniency."

"If necessary, the SSS must strengthen its legal department to expedite the prosecution of these unscrupulous employers who continue to defy the law," Santiago added.

Under the Social Security Law, employers who fail to remit contributions (including the dues that they deduct from the payroll of their workers) face six to 12 years in prison or a fine of P5,000 to P20,000, or both the prison term and the fine, Santiago pointed out.

Senate President Franklin Drilon disclosed earlier that delinquent employer owed the SSS some P4 billion in unremitted contributions as of Dec. 31, 2001.

Drilon said three out of four employers have not remitting or have defaulted in their contributions.

Santiago, meanwhile, cautioned his colleagues against endorsing any move to grant amnesty to employers that have been delinquent in remitting SSS contribution.

Santiago was referring to a bill proposing to give delinquent employers "a last chance to settle their obligations with the SSS" through a condonation of penalties.

Under the bill, delinquent employers may not be prosecuted and may not be slapped the 36 percent-per-annum surcharge on unremitted contributions, provided they settle their obligations in full within 12 months.

"We are opposed to the bill for the same reason that we have been opposed to tax amnesty programs, which not only tend to abet evasion and undermine compliance, but also fail to achieve the desired results," Santiago said.

Santiago also said establishments that have been delinquent in remitting contributions pose unfair competition to firms in the same line industry that have been religiously paying their dues.