THE PURPOSE FOR which the Government Service Insurance System (GSIS) was created embarks on securing all properties, assets, and interests of the government against any risk – and nowhere in its provisions allow the agency to venture into games of chance.
It is for the same reason that members of its board of trustees are calling for the immediate resignation of GSIS President Jose Arnulfo Veloso for poor investment decisions resulting in losses amounting to P8.8 billion.
In a strongly-worded letter addressed to Veloso, members of the GSIS board of trustees accused Veloso of pursuing risky investments “marked by a disturbing lack of transparency.”
“Your continued presence at the helm of the GSIS puts the welfare of its 2.6 million members—dedicated public servants who have entrusted their life savings and future security to this institution—in imminent danger,” part of the letter states.
“The primary mandate of the GSIS is to manage its funds with utmost prudence, diligence, and loyalty. Your current trajectory suggests a departure from this sacred mandate, prioritizing transactions that serve interests other than those of the members,” it added.
ONE-MAN CONTROL
Among the signatories in the letter included former Ombudsman Merceditas Gutierrez (in her capacity as GSIS legal oversight committee chairperson), risk oversight committee head Emmanuel de Leon Samson, audit committee chief Rita Riddle, board member Evelina Escudero and former board members Jocelyn de Guzman Cabreza and Alan Luga.
The signatories also cited what they described as “a pattern of actions seemingly designed to bypass proper governance,” including the alleged practice of splitting investment transactions—a “clear tactic,” the petitioners stated, intended to evade the mandatory board review for investments exceeding P1.5 billion.
The board likewise accused Veloso of “fabricating issues and weaponizing administrative procedures to retaliate against [board] members exercising their fiduciary duty of oversight.”
VELOSO WON’T QUIT
Responding to the letter, Veloso outrightly rejected calls for his resignation even as he claimed to enjoy the trust of President Ferdinand Marcos Jr., who appointed him to the post.
He added that the call for his resignation is something that is “not entirely unexpected,” adding that the maneuver is politically motivated.
“I categorically state that the allegations against me are baseless. I am addressing them squarely and transparently in the proper legal forum, where they rightfully belong,” he asserted.
“I appeal to everyone to spare GSIS from politics,” he added.
“Our performance speaks for itself,” Veloso likewise argued, referring to figures that indicated GSIS’s total assets climbing to P1.92 trillion and a total income of P231.06 billion, with net income reaching P100.02 billion.
“These results clearly demonstrate that, despite market headwinds, GSIS remains financially strong, resilient, and highly profitable.”