Ombudsman lifts Veloso suspension
The Office of the Ombudsman lifted the suspension of Government Service Insurance System (GSIS) president Jose Arnulfo “Wick” Veloso and four other executives, saying their presence will not impede an inquiry into the pension fund’s disputed stock investment.
In an order dated Sept. 17, acting Ombudsman Dante Vargas reinstated Veloso along with Jason Teng, Mary Abigail Cruz-Francisco, Jaime Leon Warren and Alfredo S.A. Pablo.
Two other respondents, Michael Praxedes and Aaron Samuel Chan, were excluded from the order because they were no longer connected with the fund.
The officials were suspended in July after an anonymous complaint questioned the GSIS’s P1.45-billion investment in Alternergy Holdings Corp. It was a six-month suspension meant to prevent them from influencing the inquiry.
But the Ombudsman said there was now “insufficient ground” to believe their stay in office would affect the investigation.
The case records and supporting documents, the antigraft body added, were already on hand, making continued suspension “no longer necessary.”
In a statement, Veloso said the order was a “recognition of the professionalism and integrity with which I have conducted myself throughout my tenure.”
“From the beginning, I have always acted in good faith and in accordance with the policies, procedures and legal limits governing GSIS,” he said. “I look forward to returning to the institution.”
The complaint implicating Veloso and other GSIS officials triggered a probe into the due diligence, risk exposure and the use of pension funds in the controversial stock investment.
The transaction was flagged earlier by the Commission on Audit, saying that the GSIS invested a total of P2.3 billion in the stocks of three companies that “have no proven track record of profitability over the last three years.”
State auditors warned that the transactions—including the deal with Alternergy—exposed a “significant amount of members’ contributions to high risk” and may harm the financial health and stability of the pension fund.
Veloso earlier said the suspension order was imposed without considering the counteraffidavit he submitted in response to the complaint.
He also maintained that the deal with Alternergy “underwent rigorous evaluation and endorsement by the GSIS investment team.”
As of March 2025, the GSIS has a total of 2.74 million members and pensioners. Its total assets amount to P1.83 trillion.
