Court convicts school president for unsettled penalties with SSS

A president of a private school in Nabua, Camarines Sur was convicted on Tuesday for refusing to settle monthly penalties amounting to nearly P300,000 with Social Security System (SSS).

In a statement, SSS Assistant Vice President for Operations Legal Department Renato Jacinto Cuisia said that the Regional Trial Court of Iriga has ordered the President of the Holy Cross Learning School of Nabua, Inc. (HCLSNI), Jorge Orasa to pay the SSS penalties that accumulated up to P295,556.32 and a P20,000 fine.

“There was no jail term imposed by the court against Orasa since HCLSNI eventually paid its principal obligation or unpaid contributions amounting to P137,218 for the period of August 2000 to June 2009,” said Cuisia.

Despite all billing and demand letters issued by SSS, Orasa initially refused to remit the overdue obligations of the school. However, after the pension fund sued him in court, he immediately sought an out-of-court settlement with SSS Iriga.

Cuisia said that Orosa agreed to settle the school’s delinquency by installment under Republic Act (RA) 9903 or the Social Security Condonation Law of 2009, provisionally dismissing the case.

Orasa paid the five percent downpayment and issued numerous postdated checks to cover the remaining balance. However, the checks were dishonored due to fund insufficiency, and only the first check was accepted.

“Under RA 9903, the full amount of penalties would be automatically reimposed once the employer defaults on the agreed installment payment scheme under the same law. As a result of Orasa’s bounced checks, SSS reinstated the three percent monthly penalty on the overdue premiums,” Cuisia said.

Orasa was tried in absentia and has gone into hiding after he posted bail. A warrant of arrest was also issued for the other accused HCLSNI officials, namely Hernani Z. Arazas, Virgie RB. Arazas, Vicky RB. Orasa, Sonia RB. Bagtas, David U. Bagtas, Sr. and Nardette RB. Fabian.

SSS also seeks the public’s help for any leads and information on the whereabouts of the said accused HCLSNI officials. JE/rga