The Supreme Court (SC) has ruled that remitting contributions to the Government Service Insurance System (GSIS) does not fall within the official duties of a mayor.

In a decision dated 19 June, authored by Associate Justice Samuel H. Gaerlan, the Supreme Court’s Special First Division acquitted Antonio M. Talaue of violating Republic Act 8291, also known as the GSIS Act of 1997.

Talaue served as mayor of Sto. Tomas, Isabela, from 1988 to 1998 and again from 2001 to 2010.

In 2003, GSIS informed Talaue that the municipality failed to remit the social insurance contributions of its employees between 1997 and 2003, amounting to P12,071,451.22.

After the municipality neglected to make payments despite multiple notices, GSIS initiated a case for collection and damages in the Regional Trial Court (RTC) of Pasay City.

The RTC’s ruling was based on a Memorandum of Agreement (2008 MoA) between GSIS and the Municipality, which established a liability of P25,444,429.92, to be paid over 10 years.

The Office of the Ombudsman, acting on a complaint filed by the GSIS, charged Talaue with violating Section 52(g) in conjunction with Section 6(b) of the GSIS Act of 1997.

This provision penalizes government of fice heads who fail to remit employees’ and employers’ contributions to the GSIS.

The mayor argued that the Department of Budget and Management was responsible for withholding funds from the municipality’s budget to cover GSIS premium contributions.

He also argued that the 2008 MoA reclassified the municipality’s obligation as an

outstanding loan, which, he claimed, could not serve as grounds for criminal liability.

The Sandiganbayan found Talaue guilty, ruling that the conversion of the outstanding contributions into a loan under the 2008 MoA did not absolve him of criminal liability.

In 2021, the SC denied Talaue’s appeal, prompting him to file the present motion for reconsideration.

Granting the motion for reconsideration, the Court ruled that the prosecution failed to establish that Talaue was responsible for remitting employees’ GSIS premium contributions or that he intended to violate the GSIS Act of 1997.

The Court held that under RA 7160, or the Local Government Code, municipal mayors are considered “chief executives” and not the “heads of offices” mandated by section 52(g) of the GSIS Act of 1997 to remit GSIS contributions.

The Local Government Code does not include remitting GSIS contributions among a mayor’s listed duties. Furthermore, no internal directive or issuance was cited to demonstrate the mayor’s involvement in the remittance of GSIS contributions.