Several current and former trustees of the Government Service Insurance System (GSIS) have called for the immediate resignation of President and General Manager Jose Arnulfo Veloso, citing alleged poor investment decisions that they claim caused P8.8 billion in losses.
In a strongly worded letter dated October 14, six GSIS trustees and former board members urged Veloso to ‘immediately and irrevocably’ vacate his post, accusing him of approving high-risk transactions that ‘violated fiduciary duties’ and ‘threatened the stability and integrity’ of the fund entrusted to millions of government workers.
“Your (Velasco’s) actions and championed risky transactions have compelled us to act. We contend that these initiatives are not merely questionable, but they directly violate the fiduciary duties of the GSIS,” the trustees wrote.
“Marked by a disturbing lack of transparency and offering no clear benefit to the institution, these ventures threaten the very stability and integrity of the fund we are sworn to protect. Your insistence on pursuing them, despite clear and substantial risks, is a grave betrayal of the trust placed in you by the GSIS’s members,” they added.
The group alleged that under Veloso’s management, the GSIS pursued speculative placements that had already suffered substantial losses. These include multi-billion investments in Monde Nissin Corp., Nickel Asia Corp., Bloomberry Resorts Corp., Digiplus Interactive Corp. and Alternergy Holdings Corp.
They also raised red flags over the proposed P456-million Figaro Culinary Group investment, which they said violated GSIS investment guidelines and the planned acquisition of The Centrum, which they claimed was marred by overvaluation and irregular procurement practices.
The signatories, namely Ma. Merceditas Gutierrez, Emmanuel de Leon Samson, Rita Riddle, Evelina Escudero, Joclyn de Guzman Cabreza and Alan Lucas, also cited findings from the Commission on Audit (COA) and the Office of the Ombudsman flagging irregularities in the Alternergy investment, which led to Veloso’s earlier preventive suspension.
The group warned that his continued leadership places the welfare of 2.6 million members, who have entrusted their life savings and future security to the institution, in “imminent danger.”
They added that Veloso’s leadership ‘exposes the current administration to severe and justifiable criticism,’ saying that the GSIS ‘must remain a bastion of stability and trust, not a source of controversy and political liability.’
“To prevent further erosion of trust and to safeguard the future of our members, your resignation is the only honorable and viable course of action,” the trustees said.
“We urge you to step down immediately to allow for a transition to leadership that will restore faith in the GSIS and reaffirm its commitment to its true stakeholders,” they added.
GSIS backs Veloso
In a statement issued on October 17, the GSIS stood by Veloso and defended its investment strategies, calling the allegations a ‘difference in perspectives on investment strategy and governance philosophy.’
The agency said that all investment decisions ‘follow the strictest procedural and legal frameworks’ under Republic Act No. 8291, emphasizing that its fund management is ‘data-driven, prudent, and fully compliant.’
“We emphasize that the true measure of our stewardship lies not in anonymous allegations or personality-driven narratives, but in objective, verifiable performance,” the GSIS said.
“Our financial data provides clear, measurable evidence of the strength of our management and strategy,” it added.
As of August 2025, the GSIS said its total assets rose to P1.92 trillion, showing strong financial health.
Net income hit P100.02 billion, which is 51% higher than its target, while total income climbed to P231.06 billion, boosted by premium contributions and investment gains.
The fund life was also extended to 2058, ensuring long-term stability for civil servants.
“These results are the direct outcome of a stability-focused strategy and expert asset management-delivered under the very leadership that is now being questioned,” the agency said.
GSIS added that Veloso, who recently resumed his duties after preventive suspension, continues to lead the institution with a focus on continuity and transparency.
“We respect and defer to the legal process, but our focus remains unwavering: serving our members,” GSIS said.
‘Our mandate is to our members. Our guide is verifiable data. Our mission is to secure their future. We remain focused, undeterred, and fully committed to this singular goal,’ they added.