Ex-GSIS employees face jail time for padding payroll

ABS-CBN News

Posted at Jun 23 2017 03:21 PM

Three former Government Service Insurance System employees were sentenced to 6 years in prison Friday, after the court found them guilty of illegally increasing the salaries of some government employees to make them qualify for certain loans.

In the decision penned by Pasay City Regional Trial Court branch 114 Judge Edwin Ramizo, Computer Operator IV Clemente Flojo, Data Controller IV Reuben Cellona, and Computer Terminal Operator IV Emmanuel Valera were found to have "demanded and received in 2004, the amount of P55,000.00 in exchange for the approval of loan applications of 22 employees from the Philippine Postal Office."

Witnesses told the court that the loan applications from July to November 2004, were previously rejected by the GSIS, but the three accused "conspired" to make it appear that the applicants were qualified to avail loans amounting to P154,000.

"The court found that the applicants gave facilitation money to the accused ranging from P500 to P2,500.00 in exchange for loans ranging from P89,336 to P154,008.00," the decision read.

Evidence showed that the "padded salaries" of the 22 post office employees "were reduced back to their original and correct level" after the loans "were all granted and released in one day contrary to the regular three to four day processing period."

Aside from serving their time in jail, the accused were also perpetually prohibited from holding any public post.