Sen. Francis Escudero has asked the Government Service Insurance System (GSIS) to publicly disclose the extent of its investments in the United States to assure its members that the agency’s funds remain safe and intact.
This after the continued refusal of the GSIS to give detailed investments in the US following the collapse of investment firm Lehman Brothers and recently bailed-out American International Group (AIG).
Escudero, chairman of the Senate ways and means committee, said even with the general statement issued by GSIS that its members have “nothing to worry about the impact of the collapse of Lehman Brothers and AIG” and after the bailout package of the US government to its troubled financial institutions, “GSIS has an obligation to assure its members by providing the details of its investments made by its fund managers.”
“The GSIS is in bind to, more than anyone else, its members to show proof that not only are their investments intact and well protected but that it remains to be so. Its continued refusal to disclose its global investment programs (GIP) only adds to the jitters felt by the public,” Escudero said.
The GSIS, after much prodding from lawmakers and various groups, only said that it had so far disbursed a total of $600 million to its fund managers.
GSIS said it had named the ING Investment Management and Credit Agricole Asset Management (Singapore) Ltd as global fund managers for the global investment program with each given a mandate of $300 million each.
GSIS president Winston Garcia said, “our fund managers were given flexibility to determine their investment strategy in both the asset selection and the instrument selection.”
However, Escudero continued to press GSIS to provide details on how much discretion was given to these fund managers with respect to how and where the GIP investments were to be made.
“If they are not hiding anything and indeed the funds are safe, come out with the proof and let the public know the details of the investments made by these fund managers,” Escudero said.
The senator said the GSIS should be able to fully account for the entire amount of the GIP because “$600, if that is what they only invested in GIP, is the blood and sweat of its million members who are grappling with the global economic slowdown.”