IN JULY 2025, the Ombudsman imposed a six-month suspension to Government Service Insurance System president Jose Arnulfo “Wick” Veloso and six other trustees over a P1.4 billion investment in Altenergy Holdings Corp., which the anti graft body said “breached” the 2022 GSIS Investment Policy Guidelines.
Aside from Veloso those suspended included GSIS officials Michael Praxedes, Jason Teng, Aaron Samuel Chan, Mary Abigail Cruz-Francisco, Jaime Leon Warren, and Alfredo Pablo were also preventively suspended over the deal.
This time around, the Ombudsman found GSIS president/general manager Veloso and four other officials administratively liable for violating reasonable office rules and regulations over the state pension fund’s P1.45-billion investment in Alternergy Holdings Corporation (AHC).
In a May 29, 2026 decision, a copy of which was obtained exclusively by The Manila Times, a special panel of prosecutors imposed the penalty of reprimand on Veloso, Executive Vice President Jason Teng, Vice President Mary Abigail Cruz-Francisco, Officer III Jaime Leon Warren, and Acting Officer IV Alfredo Pablo. The two have since left GSIS.
But the Ombudsman dismissed the more serious administrative charges of Grave Misconduct and Gross Neglect of Duty against the five officials, saying the evidence failed to establish bad faith, corruption, or gross negligence. It also dismissed the complaint against former executive vice president Michael M. Praxedes and former vice president Aaron Samuel C. Chan for lack of jurisdiction after they had left government service.
The administrative case arose from GSIS’ purchase of 100 million perpetual preferred shares of Alternergy under a subscription agreement signed on Nov. 7, 2023. GSIS paid the P1.45-billion subscription price on Dec. 15, 2023.
An anonymous complainant alleged that the investment violated the GSIS Investment Policy Guidelines because the preferred shares were not listed on the Philippine Stock Exchange (PSE) when the subscription agreement was executed and because Alternergy allegedly failed to meet the policy’s minimum P15-billion market capitalization requirement.
In its ruling, the Ombudsman said the respondents failed to strictly comply with GSIS’ internal procedures governing the transaction, making them liable for violating reasonable office rules and regulations.
However, the panel ruled that the evidence did not support the graver charges.
“While there was a failure to strictly observe the GSIS’s internal office procedure applicable to the transaction, the evidence on record does not demonstrate bad faith, malicious intent, corruption, or a degree of negligence so gross and reprehensible as to warrant liability for these grave administrative offenses,” the decision read.
The Ombudsman also found that there had been substantial compliance with the investment process, noting that the GSIS Board of Trustees acknowledged the transaction during its Dec. 12, 2023 meeting. It likewise noted that GSIS had accepted nearly P118 million in dividend payments from Alternergy without the board adopting any resolution repudiating the investment.
Veloso argued that Alternergy was already a publicly- listed company and that the investment was authorized under Section 36 of Republic Act No. 8291, the GSIS Act of 1997. He maintained that the Investment Policy Guidelines’ requirements on minimum market capitalization and free float applied to common shares and not to the perpetual preferred shares purchased by GSIS.
Veloso also insisted that the transaction underwent due diligence, including evaluations by the Research Office and consultations with the Assets and Liabilities Committee.
The other respondents likewise argued that they merely performed their official duties in processing and approving the investment and that none of them derived any personal benefit from the transaction.
The Ombudsman classified the violation as a light offense punishable by reprimand. According to the decision, the respondents have already served the penalty.
The ruling also comes after the Ombudsman lifted the preventive suspension imposed on Veloso and other respondents, allowing them to return to their posts while the administrative case has yet to be resolved.
In a statement, Veloso acknowledged the Ombudsman’s inquiry into the transaction, and assured that they are “cooperating fully with the investigation.”
During Veloso’s suspension, the GSIS said its board designated Juliet Bautista, Executive Vice President for Support Services, as OIC to temporarily assume Veloso’s responsibilities.
“A certified public accountant with more than 20 years of experience in auditing, accounting, and financial systems, Bautista previously led GSIS’s Internal Audit Services Office, where she was instrumental in achieving international service quality (ISO 9001) and data protection (ISO 27001) certifications. Bautista holds a Master’s in Business Administration from the Ateneo de Manila University and a degree in Accountancy from the University of Santo Tomas.”
“The GSIS Board underscores that safeguarding the institution’s integrity and protecting members’ funds remain its highest priorities. Investments in governance reforms and strong internal controls are ongoing to further reinforce system resilience and transparency,” it added.