MANILA, Philippines — The Government Service Insurance System (GSIS) has failed to collect P6.622 million receivables from its separated employees, according to the Commission on Audit (COA).
In its 2020 audit report on GSIS released on Friday, the COA said the P6.622 million remained uncollected for more than one to 16 years due to the retirement or resignation of its employees.
State auditors said these receivables represent unpaid car loans and insurances, personal calls, property or asset accountabilities, and overpayment of payroll and other related claims.
The COA said the failure to collect the amount deprived the GSIS of additional funds for its operations and “might eventually result in the loss or wastage of government resources.”
The auditing body said P3.414 million or 51.53 percent of the P6.622 million receivables from separated employees had no available supporting documents.
“The collection of said receivables could have been charged against GSIS’ monetary liability to the employees such as their respective last salary upon separation considering that it is one of the conditions in releasing their clearances for accountabilities,” the COA said.
“This also deprives the GSIS of additional funds for its operations as the collectability of the account decreases over time due to the loss of supporting documents and the fact that the whereabouts of some concerned separated employees can no longer be determined,” state auditors added.
The COA told the GSIS to send collection letters or notices to the concerned separated employees and prioritize those with complete supporting documents.
It said the GSIS should also initiate appropriate actions and demand payments from the authorized personnel who signed the approved clearances from cash and property accountabilities issued to the separated employees.