A partylist lawmaker has questioned the Commission on Audit for the long delayed release of the 2019 annual audit report for the Government Service Insurance System.
In a briefing conducted by GSIS officials for the House Committee on Public Accounts, Ako Padayon Pilipino Rep. Adriano A. Ebcas disclosed that COA has yet to publish the audit report even as the audit agency has started to release the 2020 annual audit report (AAR) of other government offices.
Chaired by Probinsyano Ako Partylist Rep. Jose “Bonito” C. Singson Jr., the public accounts panel has decided to conduct an inquiry into the financial status of GSIS, more particularly the condition of its investments, amid the declaration of officials that they are contemplating on raising the premium rate of members.
Ebcas sought an explanation on the delay even as he disclosed that in the 2018 COA report on the state-run insurance firm, state auditors noted that the GSIS failed to collect P3.7 billion in membership contributions and other receivable in the past three years due to “ineffective administration.
“The non-posting of premiums and loans collections in the accounts for clearing ultimately delayed the processing of benefits,” said Ebcas.
Responding the question, COA Director Ma. Lisa P. Inguilio admitted that there had indeed been a delay in the posting of the 2019 annual audit report in the audit agency’s website.
“It hasn’t been published yet in the COA website because of diferrent interpretation in the international accounting standards with respect to the investment property,” Ingulio said.
A check of the COA website indicated that posting GSIS and the House of Representatives audit findings had been delayed.
In the 2018 AAR, auditors also flagged the P515.634 million reinsurance procurement after discovering that one bidder bagged 35 of the 36 deals in the said program.
The same audit report noted that alleged “illegal expenditure and erroneous computation” of incentives for its employees.
GSIS Vice President Vilma Fuentes said the P3.7 billion uncollected receivables had already been addressed.
Fuentes said the as of 2020, the GSIS has recorded a 98 to 99 percent efficiency in collection of premium payments and 97 to 98 percent for loans.