The Commission on Audit (COA) has called on the Social Security System (SSS) to take legal measures against a collecting agent (CA) responsible for delays of up to 189 days in remitting P151.54 million in contributions from overseas Filipino workers (OFWs).
State auditors revealed in a Rappler report that the amount, representing 96.91% of delayed collections, was part of a larger total of P156.37 million, which also included member loan repayments. Despite the delays occurring between June and December 2023, the CA was not immediately penalized, raising concerns over the SSS’s enforcement of its Remittance Transfer Agreement. Under the agreement, remittances should be deposited to the SSS within two banking days.
The CA attributed the delays to “system upgrades and integration testing,” but later acknowledged responsibility for penalties. As of December 31, 2023, only P78.23 million had been remitted, with the remaining P73.31 million settled by early 2024.
The SSS suspended the agent on January 24, 2024, more than seven months after the delays began. In February 2024, the agreement with the CA was terminated following a final demand for settlement. However, COA criticized the SSS for its slow response and questioned why penalties were calculated on only P14.8 million, resulting in a mere P1.45 million penalty instead of the COA’s estimated P16.93 million.
COA has recommended that the SSS pursue legal action to recover unremitted funds and impose proper penalties. The state insurer has since confirmed issuing a final demand letter to the CA for $8.175 million, excluding additional penalties.
