House urged to probe GSIS P8.8 billion loss
MANILA, Philippines — Rep. Leila de Lima on Tuesday urged the House of Representatives to investigate the Government Service Insurance System’s (GSIS) reported P8.8 billion in losses from alleged risky investment decisions and transactions.
In House Resolution No. 414, De Lima sought a probe into an October 14 letter signed by former and current GSIS trustees, which cited transactions with 10 firms that supposedly led to the losses.
These include Monde Nissin Corp., Nickel Asia Corp., Bloomberry Resorts Corp., DigiPlus Interactive Corp., Alternergy Holdings Corp., Figaro Culinary Group Inc., Private Equity Investments, Udenna Land Inc., 8990 Housing Development Corp. and Acquisition of The Centrium.
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She stressed how much of a “disservice” it would be to government employees whose pensions rely on the GSIS if such funds are placed in “risky and questionable investments” likely affecting their benefits.
The GSIS reportedly has P1.6 trillion in managing assets, which De Lima said benefits 2.7 million active government employees and retirees.
The lawmaker also cited reports that found the GSIS intentionally splitting some investments into tranches to make it appear as if P1.5 billion is smaller and divided into separate investments.
The very fact that government employees are already concerned and skeptical of whether there are enough funds to support their retirement, De Lima said what more with the billions of pesos lost to bad choices.
“Para bang isinusugal ng GSIS ang hindi nila pera sa kwestyonableng mga transaksyon — kung lumago, magpasalamat na lang ang mga taga-gobyerno dahil may balatong pang-benepisyo,” she added.
The minority lawmaker said the probe should not only examine the transactions made under Veloso’s leadership, but also question the figures used to compute the GSIS’ actuarial life and assets.
This, she stressed, especially after the letter’s signatories said the growth in fund assets was largely overstated.
Veloso has since denied the allegations against him of violating and bypassing government procedures.
“We need to delve into these serious accusations, as well as the transactions made by the GSIS, to determine whether these comply with the fundamental requirements of liquidity, safety, and yield necessary to maintain the actuarial solvency of the fund,” De Lima said.
Should the House adopt the resolution during a plenary session with a quorum of members, the inquiry will be assigned to the appropriate committee or committees.
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