GSIS suspends benefit grant to gov't TV network employees

MANILA, Philippines - The Government Service Insurance System (GSIS) had suspended the grant of benefits that include insurance, health, and housing loans to employees of the government-owned television station National Broadcasting Network (NBN) after the firm failed to pay the mandatory monthly contributions worth P20.261 million from July to December last year.

The Commission on Audit (COA) 2010 report showed that the GSIS has suspended the grant of benefits to Channel 4 personnel because of the unsettled obligations.

As provided by law, the unpaid premiums, unless updated, also bar NBN employees from availing of their PhilHealth and Pag-IBIG housing and personal loan benefits.

The COA report said this is not the first time that the GSIS suspended the grant of benefits to employees of NBN, formerly known as People’s Television Network Inc. (PTNI).

State auditors said the failure of the network’s management to remit the monthly contributions of its personnel violated Republic Act 8291 or the GSIS Law of 1997, Republic Act 9679 or the Home Development Mutual Fund Act, and Republic Act 7875 or the PhilHealth Law.

But instead of reprimanding NBN Channel 4 officials, the COA report urged the management to find ways to improve its finances.

The audit team said the government television station should “improve its revenue-generating activities and intensify its collection efforts to raise much-needed funds to finance its operations and settle its obligations on time.”

State auditors also urged officials to ask the Department of Budget and Management (DBM) and the Office of the President (OP) for financial support or subsidy in case its revenue is still not enough to sustain its operations.

The COA reported that the government should assist NBN Channel 4, which is the government’s media network providing free live telecast to Malacañang for its press conferences and issues of national concerns.

In response, network officials said it has already asked the Presidential Communication Operations Office (PCOO), the DBM and the OP for subsidy since its revenues are not enough to cover regular expenses.

NBN Channel 4 is a government-owned and controlled corporation (GOCC) with 13 provincial stations nationwide engaged in television broadcasting.