GSIS execs cleared in P53-million art purchase

MANILA, Philippines - The Court of Appeals (CA) cleared Government Service Insurance System (GSIS) chairman Winston Garcia and nine others of graft charges in connection with the purchase of paintings by national artists Juan Luna and Fernando Amorsolo worth over P53 million in 2002.

The fourth division of the appeal court upheld the ruling of the Office of the Ombudsman that junked the complaint filed by two former GSIS lawyers Albert Velasco and Mario Molina and the advocacy group Courage.

In dismissing the appeal of petitioners, the CA said they failed to present convincing arguments that would warrant reversal of the Ombudsman decision.

CA Associate Justice Andres Reyes Jr. said the Ombudsman was correct in pointing out that there is no clear factual basis and parameters for confirming that the price of the artworks was “sky-high” because there was no empirical data to compare the excessive price with.

It saw no need to re-examine the probative value of findings of Commission on Audit as it was already done by the Ombudsman.

The graft case stemmed from purchase of the art masterpieces “Parisian Life” by Juan Luna and Amorsolo’s “Under the Mango Tree” and “Rice Fields” at the Christie’s Auction House in Hong Kong in October 2002 for P53,501,168.

The GSIS said the purchase was approved by six members of the GSIS board of trustees and by the COA’s resident GSIS auditor, Reynaldo Venture.

The GSIS said its charter (Republic Act 8291) allows it to spend funds in investments that will earn profit for GSIS if resold.

The Ombudsman also found no clear showing that the government was prejudiced by the purchase as the items are still at its disposal.