Republic of the Marshall Islands v Jaluit Local Government [2006] MHHC 7; Criminal Case 2006-057 (14 October 2006)

IN THE HIGH COURT OF THE
REPUBLIC OF THE MARSHALL ISLANDS

Criminal Case 2006-057

REPUBLIC OF THE MARSHALL ISLANDS

v

JALUIT LOCAL GOVERNMENT

APPEARANCES: Whitlam Togamae for the Republic
Lionel Angimea for Defendants

Reporter: Travis Joe

ORDER

This matter came before the Court for a hearing on October 10, 2006.

At the hearing the evidence showed that the Defendant had failed to file any Social Security return or pay any Social Security contributions. There was evidence that the Defendant's clerk was previously told by a former employee of Social Security that they were not required to make a contribution for workers earning less than $250.00 per quarter. This policy was denied by a current employee of Social Security.

Counsel for Defendant submitted that as the Defendant sought advice from Social Security and was told it didn't need to make contributions it can not be found to have "knowingly failed" to file or submit contributions. The Defendant's submission does not address the Defendants failure to file returns and make contributions prior to receiving the incorrect advice from Social Security.

The Republic points out that §189 of the Social Security Act states that all employers are required under the law to file returns and pay contributions, regardless of the quarterly salary.

The allegation by the Republic that the Defendant failed to file and contribute to Social Security is proven.

Penalty

There seems no point applying any punitive penalty against the Defendant however there is obviously an urgent need that the situation be rectified.

The court therefore makes the following orders:

1. The Defendant is fined $1000.00 for failing to file and contribute to Social Security in violation of §149(2) of the Social Security Act, however the fine is suspended for period of 1 year pursuant to §190 of the Criminal Code on the following conditions.

a. Defendant shall within 90 days of this order prepare and file Social Security returns for every quarter since January 1, 2000.

b. Defendant shall enter into an arrangement with Social Security to make the employers contributions for all employees pursuant to §130 of the Social Security Act for the period January 1, 2000 to date.

c. Defendant is to remain current on filings and contribution for all Social Security, Health Fund and all payments of withholding tax.

Dated October 14, 2006

Richard Hickson
Associate Justice