More senators back probe of ‘reckless’ GSIS investments

More senators want the upper chamber to look into the investments of the Government Service Insurance System (GSIS), including a P1-billion stake in listed online gambling platform DigiPlus Interactive Corp.

Senators Sherwin Gatchalian and Erwin Tulfo said it was imperative to scrutinize the investments of the government pension fund in online gambling and other high-risk ventures, including a separate P1.45-billion investment in Alternergy Holdings Corp. (AHC) that was believed to be in violation of the GSIS policies.

The GSIS has total assets of P1.83 trillion and a membership of more than 2.7 million Filipinos.

“Government institutions must always uphold prudence and integrity, especially when managing workers’ hard-earned money,” Gatchalian said in a statement as he urged the pension fund to cooperate and come clean for the sake of public trust and financial security.

“[The] GSIS should not gamble [with] the hard-earned money of our public servants, including our teachers, policemen and health-care workers, in an industry that places many of our fellow Filipinos at risk,” he added.

Tulfo, the Senate committee on games and amusement chair, also expressed strong disappointment in the GSIS leadership for investing the hard-earned money and contributions of government employees in online gambling.

“If the committee on rules deems it appropriate to investigate this with the committee on games and amusement as lead committee, I will investigate the GSIS’ placement of retirees’ money in online gambling as soon as possible,” he said.

Sen. Imee Marcos has also filed her own resolution seeking an investigation into the GSIS investments.

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Apparent pattern

Senate deputy minority leader Risa Hontiveros earlier called out the GSIS for investing in DigiPlus Interactive, which used to be a stock market favorite before a clamor for an online gaming ban caused its shares to drop from P65.30 to P13.68 each.

Hontiveros also noted an apparent pattern of “reckless and questionable investment decisions by the current GSIS leadership.”

On July 11, Ombudsman Samuel Martires ordered the six-month preventive suspension of the GSIS general manager Jose Arnulfo Veloso and six other executives over the purchase of P1.45 billion in preferred shares from AHC in November 2023 without the previous approval required by the GSIS policies.

Upon the announcement of the suspension, Finance Secretary Ralph Recto said the Department of Finance would also take a closer look into the controversial stock picks of the GSIS.