OFW
Korean national gets jail term for
non-remittance of over P1.6-M
SSS contributions
T
he Regional Trial Court (RTC) of Olongapo
City has convicted the president of a
fishing rod manufacturer for failure
to comply with the company’s legal
obligation to pay over P1.6 million in
employees' contributions to the Social
Security System (SSS).
SSS Assistant Vice President for Operations Legal
Department Renato Jacinto S. Cuisia said that Hong Yeul
Kim, a Korean national and President of the Jyung Myung
Fishing Rod Manufacturing Corporation, was ordered to
serve a jail term of six years and one day up to eight years.
“Aside from imprisonment, the conviction of Mr. Kim
also included civil liabilities, since the court has ordered
him to pay P1,627,467.63 to SSS for unpaid contributions
covering the period of July 1997 to June 2000 plus
penalties of three percent per month, in line with the
Social Security (SS) Act,” said Cuisia.
Kim claimed that the SSS erred in computing the
company’s liability by including the contributions for
employees who were on forced leave during the covered
period. He also invoked that no contributions were
due for the period of April to October 2000 due to the
company’s temporary shutdown.
However, during cross examination, “he confirmed
he is offering to pay SSS the amount of P226,177.80
with the intention of applying the said amount to his
delinquencies covering the period 1997 to 2000 because
that is the only money he has. He also admitted that he
failed to settle his delinquencies to SSS because he does
not have the money or any resources to pay,” the decision
said.
During the trial, Kim also raised that the nonremittance of contributions was due to the company’s
economic losses and cessation of operations. However,
the court did not give credit to the reason for failure to
comply with the obligation with SSS.
The court reiterated in its decision that failure to
comply with a special law such as the SS Act is considered
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“malum prohibitum” which means that intent or good
faith is immaterial. It is enough that the law was violated
and that the person responsible for the violation should
be held accountable.
“The penalty for violation of the SS Act is punitive
in character to ensure that employers will take their
responsibilities seriously. SSS does not exercise any
discretion in the enforcement of the law and only
implements what the law provides,” Cuisia explained.
Under the law, employers are required to report
The case should serve as a warning
to employers who neglect their
obligations to their workers.
employees for SSS coverage within 30 days from the
start of employment. They must also deduct monthly
contributions from employees’ salaries and, along with
the company’s corresponding share, remit these to the
SSS on or before the 10th day of the following month.
Late contributions are charged a three percent monthly
penalty.
“The case should serve as a warning to employers who
neglect their obligations to their workers. The SSS does
not only go after Filipino employers who are delinquent
in paying employees' contributions, but also those from
other nationalities as long as they are within the bounds
of the law,” Cuisia said.
At present, Kim has not appealed the decision of the
court. However, according to the SSS lawyer handling the
case, Blesselda M. Acosta, the SSS will be ready in case
Kim will file a Motion for Reconsideration.