GSIS won’t conduct separate bidding for Napocor insurance

The Government Service Insurance System (GSIS) has decided not to conduct its own separate bidding for the $6.5 billion insurance of the assets of the National Power Corp., it was learned last night.

In a telephone call to The STAR, a spokesman said GSIS president and general manager Winston Garcia decided not to conduct its own bidding in deference to Finance Secretary Jose Isidro Camacho who chairs the joint bidding committee created by Malacañang.

The GSIS was earlier poised to conduct its own bidding, according to industry sources.

The joint bidding committee is expected to push through with the electronic bidding on the insurance policy today at 5 p.m. at the Napocor head office.

Sources said Garcia had informed Camacho, chairman of the joint bidding committee, through a letter that the pension fund "would not be participating" in the bidding. But Garcia changed his mind later on.

It will be recalled that President Arroyo interceded in the GSIS-Napocor squabble by issuing Memorandum Order No. 30 directing the two institutions to create a joint bidding committee to be chaired by the Secretary of Finance and to be witnessed by the Commission on Audit.

In a meeting last Monday, it was learned that GSIS and Napocor had disagreements again on disqualifying one or two insurance brokers.

In that meeting, Napocor insisted on the exclusion of Jardine Lloyd Thompson Insurance Brokers Inc. and Marsh & McLennan Companies Inc. in the list of pre-qualified bidders for today’s auction.

But the committee ruled that it would only be Jardine Lloyd that would not be prequalified. This move of the committee reportedly triggered the "walkout" of GSIS representatives in the Monday meeting, which was chaired by Finance Undersecretary Antonio Bernardo as Camacho was then out of the country.

Initially, GSIS recommended six insurance brokers to be pre-qualified, but eventually changed this to 10 to include the world’s 10 top insurance brokers. The GSIS’ list, however, includes both Jardine and Marsh which Napocor believed should be excluded from the pre-qualified list. Jardine, which was allegedly remiss in providing "better" service to the state-owned power firm, is the current re-insurer of Napocor.

Napocor president Jesus Alcordo said they would meet the Sept. 30 deadline, the date that the insurance policy of Napocor lapses.

"It was the decision of the majority to conduct the bidding. The committee ruled that we should go ahead," Alcordo said.

For his part, Energy Secretary Vincent Perez also expressed optimism that the issue between GSIS and Napocor would be resolved soon. "I am confident that the bidding will push through Thursday (Sept. 27)," Perez said. – Donnabelle Gatdula