‘Processing of GSIS loans in full blast’

Government Service Insurance System president and general manager Winston Garcia has ordered all GSIS operating units to fast-track the processing and releasing of all claims and loans to members.

The order came after a meeting called by President Arroyo and attended by Finance Secretary Isidro Camacho, Budget Secretary Emilia Boncodin and Garcia. In the meeting the President made it clear that she disagreed with the suspension of the processing of loans and said at "no time should the GSIS members be inconvenienced even while reforms are being instituted."

It was also clarified that the suspension in the processing of loans while initiating reforms in the System was a policy solely of the GSIS.

In a statement issued to the press, Garcia said, "We wish to clarify that I have never stated that the GSIS cannot disburse funds to the members due to the non-remittance of contributions by certain government agencies."

"In the course of updating the records of the GSIS, we have stumbled across several instances of unreconciled remittances, which occurred before the administration of President Arroyo and my administration. This is an inherited problem. We are now in the process of reconciling the accounts with the subject government agencies.

"Despite the above problems, we wish to state for the record that the GSIS is in sound financial condition, and is at its most profitable. All legitimate loans and claims can and will be paid," Garcia added.

Garcia also apologized for the temporary inconvenience that the reforms have caused. "The reforms were instituted to lengthen and strengthen the life of the GSIS fund for the benefit of its members and their families," Garcia averred.