Article 74Labor and Agrarian Laws and Social Legislation, p. 74

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

statement showing the financial condition and progress

of the GSIS for the calendar year just ended.

SECTION

47.

Legal

Counsel.

-

The

Government

Corporate

Counsel

shall

be

the

legal

adviser

and

consultant of the GSIS, but the GSIS may assign to the

Office of the Government Corporate Counsel (OGCC)

cases for legal action or trial, issues for legal opinions,

preparation and review of contracts/agreements and

others, as the GSIS may decide or determine from time to

time: Provided, however, That the present legal services

group in the GSIS shall serve as its in-house legal counsel.

The GSIS may, subject to approval by the proper court,

deputize any personnel of the legal service group to act

as

special

sheriff

in

the

enforcement

of

writs

and

processes issued by the court, quasi-judicial agencies or

administrative bodies in cases involving the GSIS.

SECTION 48. Powers of the Insurance Commission. -

The

Insurance

Commissioner

or

his

authorized

representatives shall make an examination of financial

condition and methods of transacting business of the

GSIS at least once every three (3) years and the report of

said examination shall be submitted to the Board of

Trustees and copies thereof be furnished the Office of the

President of the Philippines and the two houses of the

Congress of the Philippines within five (5) days after the

close of examination: Provided, however, That for each

examination,

the

GSIS

shall

pay

the

office

of

the

Insurance Commissioner an amount equal to the actual

expenses incurred by the said office in the conduct of

examination, including the salaries of the examiners and

of the actuary of such examination for the actual time

spent.

H. GENERAL PROVISION

SECTION

49.

Dispensation

of

Social

Insurance

Benefits. - (a) The GSIS shall pay the retirement benefits

to

the

employee

on

his last day of service in the

government:

Provided,

That

all

requirements

are

submitted to the GSIS within a reasonable period prior to

the effective date of the retirement;

(b)

The

GSIS

shall

discontinue

the

processing

and

adjudication of retirement claims under R.A. No. 1616

except refund of retirement premium under R. A. No. 910.

Instead, all agencies concerned shall process and pay the

gratuities of their employees. The Board shall adopt the

proper rules and procedures for the implementation of

this provision.

SECTION 50. Development and Disposition of Acquired

Assets. - The GSIS shall have the right to develop and

dispose of its acquired assets obtained in the ordinary

course

of

its

business.

To

add

value

to,

improve

profitability on, and/or enhance the marketability of an

acquired asset, the GSIS may further develop/renovate

the same either with its own capital or through a joint

venture

arrangement

with

private

companies

or

individuals.

The GSIS may sell its acquired assets in accordance with

existing

Commission

on

Audit

(COA)

rules

and

regulations for an amount not lower than the current

market value of the property. For this purpose, the GSIS

shall conduct an annual appraisal of its property or

acquired assets to determine its current market value. All

notices of sale shall be published in newspapers of

general circulation.

No injunction or restraining order issued by any court,

commission, tribunal or office shall bar, impede or delay

the sale and disposition by the GSIS of its acquired assets

except on questions of ownership and national or public

interest.

SECTION 51. Government Assistance to the GSIS. - The

GSIS may call upon any employer for such assistance as

may be necessary in the discharge of its duties and

functions.

I. PENAL PROVISIONS

SECTION 52. Penalty. - (a) Any person found to have

participated directly or indirectly in the commission of

fraud, collusion, falsification, or misrepresentation in any

transaction with the GSIS, whether for him or for some

other persons, shall suffer the penalties provided for in

Article 172 of the Revised Penal Code.

(b) Whoever shall obtain or receive any money or check

invoking any provision of this Act or any agreement

thereunder,

without being entitled thereto with the

intent to defraud any member, any employer, the GSIS, or

any third party, shall be punished by a fine of not less

than Five thousand pesos (P5,000.00) nor more than

Twenty thousand pesos (P20,000.00) or by imprisonment

of not less than six (6) years and one (1) day to twelve (12)

years, or both, at the discretion of the court.

(c) Whoever fails or refuses to comply with the provisions

of this Act or with the rules and regulations adopted by

the GSIS, shall be punished by a fine of not less than Five

thousand

pesos

(P5,000.00)

nor

more

than

Twenty

thousand pesos (P20,000.00) or imprisonment of not less

than six (6) years and one (1) day to twelve (12) years, or

both, at the discretion of the court.

(d)

The

treasurer, finance officer, cashier, disbursing

officer, budget officer or other official or employee who

fails

to

include

in

the

annual

budget

the amount

corresponding

to

the

employer

and

employee

contributions, or who fails or refuses or delays by more

than

thirty

(30)

days

from

the

time

such

amount

becomes due and demandable, or to deduct the monthly

contributions of the employee shall, upon conviction by

final judgment, suffer the penalties of imprisonment

from six (6) months and one (1) day to six (6) years, and a

fine of not less than Three thousand pesos (P3,000.00)

but not more than Six thousand pesos (P6,000.00), and in

addition, shall suffer absolute perpetual disqualification

from holding public office and from practicing any

profession or calling licensed by the government.

(e) Any employee or member who receives or keeps fund

or property belonging, payable or deliverable to the GSIS

and appropriates the same, or takes or misappropriates or

uses the same for any purpose other than authorized by

this

Act,

or

permits

another

person

to

take,

misappropriate or use said fund or property by expressly

consenting

thereto,

or

through

abandonment

or

negligence, or is otherwise guilty of the misappropriation

of said fund or property, in whole or in part, shall suffer

the penalties provided in Article 217 of the Revised Penal

Code, and in addition, shall suffer absolute perpetual

disqualification from holding public office and from

practicing

any

profession or calling licensed by the

government.

(f) Any employee who, after deducting the monthly

contribution

or

loan

amortization from a member’s

compensation, fails to remit the same to the GSIS within

thirty (30) days from the date they should have been

remitted under Section 6(a), shall be presumed to have

misappropriated such contribution or loan amortization

and shall suffer the penalties provided in Article 315 of the

Revised Penal Code, and in addition, shall suffer absolute

perpetual disqualification from holding public office and

from practicing any profession or calling licensed by the

government.

(g) The heads of the offices of the national government,

its

political

subdivisions,

branches,

agencies

and

instrumentalities,

including

government-owned

or

controlled

corporations

and

government

financial

institutions, and the personnel of such offices who are

involved in the collection of premium contributions, loan

amortization and other accounts due the GSIS who shall

fail, refuse or delay the payment, turnover, remittance or

delivery of such accounts to the GSIS within thirty (30)

days from the time that the same shall have been due

and

demandable

shall,

upon

conviction

by

final

judgment, suffer the penalties of imprisonment of not

less than one (1) year nor more than five (5) years and a

© Compiled By RGL

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