Despite 97,000 Firms Not Remitting Contributions, SSS Earns P274.5M from Real Estate
Manila, Philippines–Despite the Commission on Audit’s (COA) report that 97,000 companies failed to remit premium contributions, totaling to P8.17 billion, to the Social Security System (SSS) in 2014*, SSS has generated an income of P274.5 million in the first half of 2015 from the sale and rent of SSS-owned properties such as residential and commercial lots, condominium units, buildings, and parking lots.
SSS foresees year-end earnings at about P1.2 billion, which should come from the additional earnings of P289 million from the lease of these properties in the remaining months of 2015, and P696.5 million from the sale of some properties in the second half of this year.
In a statement, May Catherine Ciriaco, SSS senior vice president and concurrent officer-in-charge of the lending and asset management division, said the earnings were mainly derived from leasing properties with a combined value of P12.7 billion, which are part of a total of P17.9-billion portfolio of noteworthy properties.
“…SSS assets for the most part have not remained idle, for about 70 percent of our P17.9-billion investment properties have been on lease and are bringing in regular income for SSS. The rest of SSS assets are either for sale, or are retained as SSS property due to their expected increase in value,” Ciriaco said.
Properties scheduled for bidding before the end of 2015 include condominium units and parking lots in Bella Villa and Pioneer Highlands, as well as lots in Marilao, Villa Josefina, Zamboanga, and Manila Harbour.
“Meanwhile, as part of the [private sector] pension fund’s long-term strategy, SSS intends to maintain its ownership of select prime properties, such as in Fort Bonifacio in Taguig City and East Triangle in Quezon City, given the expected appreciation in their real estate value,” Ciriaco added.