GMA orders probe into insurance scam

President Arroyo ordered yesterday a probe into the reported re-insurance scam at the Government Service Insurance System (GSIS).

The President directed Justice Secretary Hernando Perez to assign a team of lawyers from the Office of the Government Corporate Counsel (OGCC) to conduct the investigation.

The probe team earlier looked into alleged anomalies at the Social Security System (SSS).

The presidential directive came on the heels of an exposé by the Philippine Center for Investigative Journalism (PCIJ) claiming that a re-insurance scam has been going on at the GSIS for at least two administrations.

Winston Garcia, president and general manager of the Government Service Insurance System (GSIS), in a statement issued on Wednesday, branded the PCIJ report as "libelous, malicious and without an iota of evidence."

Reached by The STAR for comment, Garcia said the PCIJ story "is full of insinuations, has placed malice on our official actions, and — to make matters worse — is bereft of any evidence. To say that it is libelous is even an understatement."

Mrs. Arroyo enjoined Garcia to explain the alleged irregularity to Finance Secretary Isidro Camacho since the GSIS falls under the supervision of the finance department.

"Today, I gave instructions to Secretary Perez that it’s time for him to pull out his OGCC (team) from the SSS because they have filed already two cases based on their investigations," the President said. "I want him to bring his OGCC team to the GSIS to do the same investigation," Mrs. Arroyo added.

Garcia has challenged the PCIJ to substantiate its allegations. "I am sure they cannot come up with a single deal," he added.

The PCIJ report stated that certain private companies have established a monopoly of the re-insurance business at the GSIS in collusion with some officials of the agency.

The OGCC team earlier looked into the administrative charges filed by former SSS Administrator Vitaliano Nañagas before the Presidential Anti-Graft Commission against four SSS senior officials. — Marichu Villanueva