For non-remittance, registration; Pag-IBIG sues 30 firms

CEBU, Philippines - The Home Mutual Development Fund-Cebu City branch sued more than 30 companies and businesses in Cebu for non-remittance of contributions and non-registration of its employees.

HMDF or Pag-ibig Fund-Cebu south branch lawyer Leonard Elacion said that these erring companies are mostly into security and manpower services.

“Kadaghanan sa among gipangkiha, sige lang ni sila ug pang-kolekta sa ilang mga empleyado unya wala nila gi-remit sa Pag-ibig,” said Elacion.

The agency is also closely monitoring large companies in the city for possible filing of charges.

He said that some local government units are also violating the Republic Act 9679 or the Pag-ibig Fund Law of 2009 because of the delay in the remittances.

National agencies such as the Department of Education-7 and the Philippine National Police-7 are almost always delayed on their remittances.

Section 25 of Republic Act 9679 provides that; “Any person or employer who fails to register any of their employees or fails to remit the required contributions, are liable to pay a fine or not less than, but not more than twice, the amount involved or imprisonment of not more than six years or both such fine and imprisonment in the discretion of the court, apart from the civil liabilities and/or obligations of the offender or delinquent.”

The law further stated that if the offender is a corporation, the penalty shall be imposed upon the members of the governing board and the president or general manager, without prejudice to the prosecution of related offenses under the Revised Penal Code and other laws, revocation and denial of operating rights and privileges in the Philippines, and deportation when the offender is a foreigner.

Elacion said that companies would usually deduct from their employees’ contributions and loan amortization but do not remit them on the required period causing the delay of their contributions and loan payment.

“The result is that employees are now deprived to avail of the benefits such as the multi-purpose loan and other provident benefits because their accounts are not being updated,” he added.

Elacion added that there are companies or employers who settled their unpaid obligations the moment they are being sued in court.

“We hope nga di na lang unta ni sila magpa abot ikiha so that their employees will not be deprived of the benefits that they are entitled to under the Pag-ibig Fund,” he said.

Elacion also reminded all employers, whether in private or public, that they are required and mandated under the said law to register their employees with Pag-ibig Fund and to remit the required contributions, regardless of their employment status. — (FREEMAN)