EDITORIAL - Reforms in the SSS

Don’t push for privatization. Don’t be pugnacious with employees. These are lessons Vitaliano Nañagas II has learned the hard way, and which his successor can keep in mind as she assumes the helm of the Social Security System. Corazon de la Paz, however, should not take being non-combative to mean being timid, especially in cleaning up the SSS and instituting reforms.

The transfer of Nañagas to the Development Bank of the Philippines should also not derail the investigation of bad investments made by the previous SSS management, which have put the pension fund P11.2 billion in the red, according to a report from the Commission on Audit. Among those who pushed aggressively for Nañagas’ ouster was SSS executive vice president Horace Templo, one of several officials being investigated for behest investments made by the pension fund during the previous administration to bail out companies owned by friends of deposed President Joseph Estrada.

SSS employees walked out of their jobs not only to oppose the proposed privatization but also to complain about Nañagas’ management style. You can’t help wondering why these employees kept their peace when the SSS was rocked by scandals involving the multibillion-peso behest investments in the previous administration. And you can’t help suspecting that a number of these protesting employees were simply smarting from efforts by Nañagas to clean up and streamline the pension fund. Similar protests have rocked the Bureau of Internal Revenue, arguably the most corrupt government agency, since its new commissioner started reshuffling personnel and implementing reforms.

Corazon de la Paz has no record of being obnoxious in her style of management, and she is likely to think three times before reviving the proposal to privatize the pension fund. If SSS employees care about their agency, they should give their new administrator a chance to improve its operations. Given the ugly financial situation of the SSS, its employees – quick to protest against management style but not corruption and mismanagement – should stop blocking reforms.