CEBU City Councilor Sisinio Andales questioned the Cebu City Government’s failure to remit over P36 million in mandatory deductions and obligations to national agencies.
The Commission on Audit (COA) revealed the failure in its 2024 annual audit report.
Andales, in a privilege speech Tuesday, July 29, 2025, said he was dismayed at the City’s “miserable” performance in remitting mandatory contributions, loan payments and withholding taxes.
The unremitted amounts include P27 million for Government Service Insurance System (GSIS) contributions and loan payments, P6 million in withheld taxes due to the Bureau of Internal Revenue (BIR), P4.3 million in Philhealth contributions and P2.3 million for Pag-Ibig Fund premiums and loan payments. Some of the Philhealth dues date back 10 years.
The councilor said these figures represent “broken promises.” He added that the unresolved issue jeopardizes the welfare of several City Hall employees.
He warned that the non-remittance could compromise health insurance coverage, retirement benefits and housing loan applications for affected personnel.
Andales also said such delays result in penalties and surcharges, further hindering the City Government and its workforce.
“Beyond the legal consequences, we must ask ourselves. What kind of government neglects the very people who have been running it? Do we tolerate negligence, misfeasance?” Andales said.
“Behind every unremitted peso is a public service, a nurse, a clerk, a sanitation worker, a street cleaner may not face delays in accessing medical treatment, securing a home and retiring with dignity,” he added.
Andales said the Human Resource Development Office (HRDO) cited “staffing limitation and outmoded system” for the delay. The City Accounting Office (CAO) pointed to “timing differences and voluminous clarificatory items.”
He said these explanations are symptoms of a deeper concern about governance and prioritization.
He urged the City Accounting Office and the HRDO to provide a full accounting of the unremitted contributions, loan payments and taxes.
The council must receive a report on the reconciled accounts, including the strategy and timeline for payment.
He urged the Office of the Mayor to take immediate action. This includes hiring a qualified payroll officer and a remittance reconciliation expert to fast-track efforts on paying reconciled amounts, based on the recommendation of the City Accounting Office and the HRDO.
COA, in its 2024 annual audit report, said the non-remittance of withheld taxes is counterproductive to the National Government’s efforts to fund critical projects. The BIR could impose interest, penalties, and surcharges for the violations.
Non-remittance may also affect the processing of employee insurance claims from PhilHealth.
Employees might also not be entitled to dividends from their Pag-IBIG accounts and could face suspension of their benefits and privileges under GSIS.
COA has urged the CAO and the HRDO to coordinate with the relevant agencies, fast-track the updating of records and reconciliation efforts and immediately remit all reconciled amounts due to the BIR, Philhealth, Pag-Ibig Fund and GSIS. / EHP