Economy September 18, 2023 | 8:00 am

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Audit points out a gap of more than RD$2 million in payrolls of the General Directorate of Mining

Santo Domingo.- During the period spanning from 2020 to 2022, the General Directorate of Mining (DGM) encountered significant disparities in the payrolls it reported to both the Social Security Treasury (TSS) and the General Directorate of Internal Taxes (DGII). These discrepancies amounted to 2,014,833 pesos, potentially leading to inaccuracies in social security contributions and income tax withholdings.

This revelation comes from an audit conducted by the Comptroller General of the Republic. The audit scrutinized the DGM’s activities from August 17, 2020, to December 31, 2022, revealing inconsistencies in employee counts between reports submitted to both agencies within the same months.

The most substantial variation surfaced in August 2022, where a payroll totaling 8,633,772 pesos was reported to the TSS for 209 employees. However, when submitting the IR-3 form for Income Tax Withholding (ISR), the reported payroll stood at 7,152,150 pesos (a significant 1,481,621 pesos less) for only 183 employees, signifying a shortage of 26 workers.

August 2021 also exhibited a significant disparity between both reports. The payroll presented to the Treasury was 7,590,847 pesos for 195 employees, while the Internal Taxes report showed a 1,340,421 pesos deficit (6,250,425 pesos) among 172 employees (23 fewer employees).

Conversely, there were instances where the opposite occurred, like in March 2021, when the IR-3 form indicated 190 employees with a total payroll of 8,175,280 pesos. However, the report submitted to the TSS for that same month listed two fewer employees, with a payroll of 7,590,846 pesos, resulting in a 1,082,633 pesos difference.

January 2022 was the month with the least discrepancy during the analyzed period. The Internal Taxes payroll was only 624 pesos less than what was reported to the Treasury, totaling 7,925,310 pesos, with both institutions reporting the same number of employees, 204 in total.

Furthermore, the audit identified that at least 28 employees had outdated files and lacked supporting documents. These files lacked technical assessments, training records for 27 employees, and psychometric tests for 26 employees. Additionally, 18 employees had no criminal record, 12 were missing job applications, four lacked resumes, and three lacked education certificates.

As a result, the audit recommended that the human resources department clearly define job functions, complete missing files, and ensure that all required documents are collected during the hiring process, keeping them up-to-date to prevent the loss of critical information.

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Paul Tierney
September 18, 2023 10:23 am

This gap points out the flaws in the country’s payroll system allowing it to be corrupted to the point that ghost employees can be placed on payrolls. These ghost employees can collect salaries and pensions all knowing they and their sponsors have a rare chance to be held accountable for the malicious behaviors that rob the treasury. There is a deep need to have payroll audits of employees; look at them, confirm the workplace, hours worked, employment application, and employment history. It is not uncommon in the country to have people on the government payroll who do absolutely nothing under the supervision of superiors who would not recognize them.