Facts:

• Romarico J. Mendoza was the president of Summa Alta Tierra Industries, Inc. (SATII).
• SATII was registered with the Social Security System (SSS).
• Mendoza was charged for not remitting SSS premium contributions of SATII employees, totaling PHP 421,151.09, from August 1998 to July 1999.
• Despite multiple advisories and extensions from the SSS, Mendoza failed to remit the contributions.
• Mendoza was indicted and convicted by the Regional Trial Court of Iligan City, Branch 4, for violating Section 22 (a) and (d) in relation to Section 28 of Republic Act No. 8282 (Social Security Act of 1997).
• The trial court sentenced him to imprisonment for six years and one day to eight years and ordered him to pay the unpaid contributions.
• The Court of Appeals affirmed the trial court's decision, stating that lack of criminal intent or good faith is not a defense under the Social Security Act.
• Mendoza's motion for reconsideration was denied, leading to the present petition for review on certiorari.

Issue:

• (Unlock)

Ruling:

• Yes, the managing head or president of a corporation is personally liable for failing to remit SSS premium contributions under Section 28 (f) of the Social Security Act.
• The penalty imposed on Mendoza was modified. He was sentenced to an indeterminate prison term of f...(Unlock)

Ratio:

• The Supreme Court held that remittance of contributions to the SSS under Section 22 (a) of the Social Security Act is mandatory.
• Failure to comply is considered malum prohibitum, making intent or good faith irrelevant.
• The law's mandate is clear and unambiguous.
• The term "managing head" in Section 28 (f) is used broadly to include any person with management, control, and power over a business entity.
• This interpretation pr...continue reading