GSIS needs an investment professional - DEMAND AND SUPPLY

Now that President GMA has started to recall appointments, here is one more for her to recall. The presidency of the GSIS was given to a protégé of Lito Osmeña of Promdi. Unfortunately, I have received reports that the guy is not as qualified for the job as Federico Pascual, the man he replaced.

Lito Osmeña’s guy is supposedly a lawyer with no experience in management and the financial world. His appointment is actually in violation of the GSIS Charter. Republic Act 8291 or the GSIS Act for 1997 stipulates in Section 44 that the President and General Manager must have management and investment expertise.

The GSIS is a trust fund the government manages on behalf of government workers. Unfortunately, it was abused during the Marcos regime. After EDSA 1, even during Erap’s short reign, it had been more or less managed professionally. Except for the instances when Mark Jimenez bullies it to finance some of his corporate forays.

Still, Ding Pascual did seem like he did as much as he could to manage the trust fund as a professional investment banker would. In fact, GMA would have been justified to retain him. At least, Ding Pascual had a lifetime career as a banker and is, therefore, qualified to manage GSIS as a trust fund.

What is worrisome now is how President GMA so quickly surrendered a key post to pay off a perceived political debt to Lito Osmeña. I am sure that if Finance Secretary Bert Romulo were consulted, he would have wanted to see a few more names and check out qualifications and track records. Any President owes the government workers this much consideration.

At least, the SSS was placed in very capable and trustworthy hands. After a cloud of doubt hovered over the system under Erap pal Chuckie Arellano, we can be sure Lanny Nañagas will not allow the kind of political interference that Chuckie relished in. An ex-Citibanker who knows his investment banking, Lanny is also one of those rare ones with strong spiritual roots.

Anyway, if the appointment is final, even if illegal, maybe Secretary Romulo will just have to be extra watchful that the GSIS is not managed as some kind of spoils of a political war. COURAGE, the association of government workers should have a permanent seat in the GSIS Board so they can more easily monitor what belongs to them.

Secretary Romulo should also take special care that the long running re-insurance scams are eradicated in his watch. Too many administrations took liberties with the pension fund of poorly paid government employees. It is time their welfare is finally made the paramount concern of the GSIS.

Incidentally, the GSIS should immediately collect on Sen. Blas Ople’s "low cost" housing loan at Corinthian Gardens. He should pay his arrears and penalties of over P25 million or so, if that’s the last honorable thing he will do on this earth.

It is unfair for GSIS to publish several newspaper pages of foreclosed assets from government employees who are unable to pay hundred thousand peso housing loans and allow a multi-million peso housing loan go delinquent. If the senator refuses to pay, foreclosure proceedings should start immediately.

Imagine how many poorly paid government employees can get housing loans if only Senator Ople paid his debt.

Erap cronies

So there is a deluge of Erap cronies who want to testify against him in exchange for immunity. I think government should be careful in reacting to these offers, specially from the likes of Jaime Dichaves and Atong Ang. As Justice Secretary Nani Perez correctly observed when we talked about it at the EDSA Shangri-La Tuesday Club, some of these cronies may be guiltier than Erap.

Secretary Nani Perez also said he thinks he can get the job done with Mark Jimenez alone. Erap’s "corporate genius" was apparently in on a hell of a lot of deals. His record-keeping is also supposedly a prosecutor’s dream – returned checks and letters galore.

Unlike other Erap cronies, MJ also reportedly paid a lot in terms of taxes, making it look like his "brokerage services" were legal. As it is turning out, MJ was one powerful influence peddler whose genius is largely because public perception of his close relationship with Erap gets people to cut deals right away.

Secretary Perez told me the new materials they have will make their case against BW officers even stronger. The details contained in MJ’s testimony will implicate a lot of people, the justice secretary said. It has become such that Secretary Perez required MJ to prepare several affidavits instead of one long one. That will make the volume of evidence manageable.

But for the other cronies, let them face the charges. As Nani puts it, they seem more culpable or guilty than Erap himself. Besides if these arrogant monosyllabic creatures get immunity, people will suspect they managed to fix DOJ prosecutors. That’s not good for the young administration’s image.

Trapos

I received this e-mail from reader Alex de la Paz of Alabang about our column on the trapos.

I cannot help but react to your column this morning, Jan. 29. I know I will be late to the office, but just the same, I am taking my time to write you to let you know that I share your opinion about "all the old politicians should just fade away from the scene and allow the younger ones to take over". Better yet, they (De Villa, De Venecia, Peping Cojuangco ... and the likes) should be hauled away with Erap and exiled to the Spratley Islands.

Like you, I also saw Peping Cojuangco’s interview with ANC. They did not only try very hard to claim credit for EDSA, but they also showed their true colors (their color adopts to the color of the political faction they talk with) by brokering links with the likes of Sanlakas which also clamored for the head of GMA (remember Resign All?).

This is a classical trapo move where concessions are promised even to your known foes, if only to get the numbers to put them in power, unmindful of the danger on the principles they are supposed to be fighting for. Honestly, when I saw Mr. Cojuangco in the forefront of the rallies in Makati during the earlier days of protest in the later part of last year, I had goose bumps. We were fortunate that he took the low road when the numbers in EDSA started to grow, otherwise, we would have not gotten half the number we had during the height of the revolution, and this is no exaggeration.

"People are sick of the old tired faces of politicians who had their chance at government and failed". You couldn’t have said it any better. Can’t you send this message too to GMA so she will be more conscious with the clamor of the EDSA 2 crowd and always have this in mind when she makes her Cabinet appointments?

More power to you and keep speaking your mind. Your specie is becoming very rare these days.

Favorite sport

Dr. Ernie Espiritu sent this timely joke, all the way from Texas.

A traveler asks a Filipino what the most popular exotic sport is in his country. The Filipino says, "Cockfighting."

"Revolting!" responds the traveler.

"No, that’s second."

(Boo Chanco’s e-mail address is [email protected])