'GSIS won't sell paintings yet; study ongoing'

MANILA, Philippines -  Paintings worth millions of pesos placed under the custody of the Government Service Insurance System (GSIS) will not be sold until after a thorough study is made, presidential spokesman Edwin Lacierda said yesterday.                     

“There’s an ongoing study (on) how to maximize the assets. There’s a need to further maximize the assets. There is still no clear decision to sell the assets yet,” he said.               

GSIS president Roberto Vergara said they have plans to auction off the artworks – which include Juan Luna’s ‘Parisian Life” worth P200 million – to pay off the state insurer’s debts and keep it afloat.The sale of the artworks would help finance the claims of the insurer’s housing and educational plan holders.               

The GSIS bought the Luna painting for P46 million in 2001. It was reportedly appraised to be worth at least P200 million. The insurer believes it can earn up to P500 million from the sale of artworks in its museum. “We’ve stopped collecting artworks. We had preliminary discussions with some art collectors in the Philippines. We will also talk to auction houses to see if there’s any interest in our collection,” Vergara said.Other options considered are the forced retirement of 16 of its top executives – three executive vice presidents, three senior vice-presidents, and 10 vice-presidents – and the reduction of salaries, benefits, and bonuses of officials and employees.

“We will offer them (executives) roles within the organization. If they will not accept, early retirement will be done,” Vergara said.            

GSIS is also considering the sale of some of its real estate properties in Fort Bonifacio and Ortigas Center.                  

While the plan is not expected to pay for all of the insurer’s debts estimated at P15 billion, it would help the agency raise money to meet its responsibilities to members.             

The GSIS is also studying a proposal to ask the Pag-Ibig Fund to handle housing loans of more than 1.4 million government workers.

Sen. Lito Lapid, meanwhile, has filed a resolution seeking an inquiry into the move of the GSIS to suspend its housing loan program after failing to collect loans amounting to P11 billion.

The suspension of the loan program raised suspicions of bankruptcy after GSIS chairman Daniel Lacson Jr. affirmed that the state insurer is struggling to collect the unpaid loans.

”It is very well within the mandate of the GSIS to provide housing loans program to active and eligible members,” Lapid said. – With Christina Mendez