Calls for Accountability in GSIS Investment Scandal
MANILA, Philippines — Government workers are demanding justice as they call on the Office of the Ombudsman to hold GSIS leaders accountable for a controversial P1.45 billion investment. The investment involved perpetual preferred shares of Alternergy Holdings Corp. (AHC) and was described as unauthorized and irresponsible by union groups.
During a press briefing on Thursday, the Confederation for Unity Recognition and Advancement of Government Employees (Courage) and ACT Teachers pressed for prompt action following the Ombudsman’s suspension of GSIS president Wick Veloso and six other officials. The groups emphasized the urgency of resolving this case to protect the interests of government employees.
Ombudsman Highlights Grave Misconduct in GSIS Case
The Office of the Ombudsman issued a 13-page order dated July 11, citing strong evidence of grave misconduct, gross neglect of duty, and violations of office rules relating to the GSIS purchase of Alternergy shares. The investment allegedly breached the 2022 GSIS investment policy and was made without the required approval from the GSIS Board of Trustees.
Authorities noted that the shares were not listed on the Philippine Stock Exchange when the deal was struck and paid for. Additionally, the investment failed to meet the necessary market capitalization standards, raising questions about due diligence and proper protocols.
Union Leaders Demand Justice and Transparency
Courage national president Santiago Dasmariñas praised the Ombudsman’s decision, urging the investigation to reach its logical conclusion. “This should end in the logical conclusion. Veloso and six other officials acted without the necessary approval of the Board of Trustees. This is a big violation,” he said.
Dasmariñas stressed the importance of GSIS as a financial lifeline for millions of government employees and retirees, especially in times of crisis. “Government employees rely on the GSIS … In times of calamities, government employees are in need. But this is what Veloso and six other employees did,” he added.
Similarly, ACT Teachers chair Vladimer Quetua echoed calls for accountability. “To us, [GSIS executives] shouldn’t just be investigated. Heads should roll here. Meaning, there should be someone punished,” Quetua said. “The teachers’ calls are similar to the government employees: Don’t turn the pension of the employees into a business.”
He noted that teachers, as major contributors to GSIS, have long faced burdensome policies with unreasonable interests and arrears. “It should be teacher-focused, government employee-focused. Because it’s the [state] insurance system, it should help the government employees themselves,” Quetua said.
Suspensions and Ongoing Investigation Amid Leadership Changes
The suspended officials include GSIS executive vice presidents Michael Praxedes and Jason Teng; vice presidents Aaron Samuel Chan and Mary Abigail Cruz-Francisco; officer Jaime Leon Warren; and acting officer Alfredo Pablo. The Ombudsman warned that their continued presence might affect the investigation’s integrity.
Ombudsman Samuel Martires’ term ends on July 27, potentially passing the case to his successor. Political experts note that the investigation will remain valid under new leadership. A University of the Philippines professor said, “The case can continue considering that only the current Ombudsman will finish his term. The new Ombudsman still has jurisdiction over the case.”
Seventeen candidates have applied to be the next Ombudsman, including key government officials. Public interviews are scheduled from July 30 to August 6. Experts urge civil society to scrutinize nominees closely to ensure public trust.
Courage expressed hope that the new Ombudsman will pursue the case with independence and determination. “The next Ombudsman has to focus on this,” Dasmariñas said. “This should end in the best logical solution. Enough corruption in the GSIS.”
For more news and updates on GSIS investment case, visit Filipinokami.com.
