COA also flags DepEd’s PhilHealth, Pag-Ibig compliance

MANILA, Philippines — The Department of Education (DepEd) has yet to remit its mandatory contributions to the Philippine Health Insurance Corp. (PhilHealth) and Home Development Mutual Fund (Pag-Ibig) totaling P685.9 million last year, to the detriment of its employees, according to a report by the Commission on Audit (COA).

The figure represents more than P503.4 million in PhilHealth premiums, while Pag-Ibig contributions and loan amortizations that were deducted from the payroll of DepEd personnel amounted to P183 million.

The unpaid balance, the COA noted, was an aggregate “from prior years” up to Dec. 31 last year.

In its 2023 audit report on DepEd, state auditors pointed out that management’s failure to timely remit the contributions “deprived the members of the availment of the privileges and benefits due them.”

The affected DepEd personnel could also face possible penalties and surcharges for the delay or nonremittance of contributions, they added.

In calling out DepEd, the COA cited the National Health Insurance Act, which requires employers to remit a member beneficiary’s monthly contribution on or before the prescribed date. Failure to do so would hold the employer liable for reimbursement when employees avail themselves of PhilHealth benefits.

Risk of penalties

A breakdown of the unpaid PhilHealth premiums showed that DepEd’s regional office in Zamboanga Peninsula had the highest balance at P143.4 million, followed by the regional offices in Eastern Visayas and Bicol region at P68.7 million and P64.2 million, respectively.

At the agency’s Metro Manila office, P23.8 million has yet to be turned over to the state health insurer.

For the Pag-Ibig contributions, the COA warned that the nonremittance of workers’ contributions would subject the employer to a “penalty of three percent per month payable from the date the contribution (was) due until paid,” as stipulated in the Home Development Mutual Fund Law of 2009.

DepEd’s Eastern Visayas regional office had the biggest chunk of the unpaid Pag-Ibig deductions at P40.2 million, followed by the Cagayan Valley and the Bicol regional offices at P26.7 million and P22.04 million, respectively.

Corrective action

The COA said it recommended, to which the DepEd management agreed, to “remit immediately” the withheld contributions as of end-2023 to adhere to pertinent laws and “avoid the risk of penal sanctions.”

It also asked the agency to “immediately coordinate” with accountants and concerned personnel for identification of the affected employees.

The unremitted premiums to PhilHealth and Pag-Ibig are part of the audit findings on DepEd for the year 2023, the last full year of Vice President Sara Duterte as secretary.

The same report had called out DepEd through the issuance of a notice of suspension, or a “temporary disallowance,” for the P10.1 billion worth of disbursements from its 2023 budget that appeared to be illegal or improper.

Unless the transactions are justified by the responsible government offices or agencies, the COA will eventually direct DepEd to return the suspended amount through a notice of disallowance (ND).

The COA already issued NDs on a total of P2.2 billion in expenses that DepEd was compelled to remit to the government as of the end of last year.