CITING possible governance lapses that could affect the pension security of state workers and retirees, public sector workers have called for an independent investigation into the reported P8.8-billion loss in the investments by the Government Service Insurance System (GSIS).
In a statement over the weekend, the Public Services Labor Independent Confederation (PSLink) said the controversy reflects what it sees as serious failures in oversight and accountability within the GSIS.
‘Those responsible must be held liable for any breach of duty or misuse of members’ money. The pension funds of public servants are not for gambling, corruption, or political favor. They exist solely to guarantee security, dignity, and justice for those who have spent their lives serving the Filipino people,’ read the statement of the national confederation of public service workers.
The group urged the Marcos administration to order an independent and transparent probe into all GSIS transactions questioned by several of its trustees.
It also called for stronger internal controls, regular public disclosure of investment performance, and the inclusion of worker representatives in the GSIS Board to improve oversight.
‘Public sector unions and workers will not remain silent while their retirement savings are gambled away through mismanagement and impunity. We call on the Marcos administration to act decisively and transparently,’ it added.
PSLink’s call followed the confirmation of several GSIS trustees that the agency incurred the losses under the management of GSIS President and General Manager Wick A. Veloso. These trustees are: former Ombudsman Merceditas Consunji N. Gutierrez; Emmanuel D. Samson; Rita E. Riddle; Evelina G. Escudero; Jocelyn G. Cabreza; and, Alan R. Luga.
In a letter calling for the resignation of Veloso, the trustees alleged that the fund’s leadership bypassed board oversight and pursued high-risk investments despite repeated objections. They also claimed that some transactions were split to avoid review by the GSIS board.
The PSLink said these allegations, if proven, would constitute mismanagement and a breach of fiduciary duty. It also questioned the lifting of Veloso’s preventive suspension before the completion of a full investigation.
‘We are deeply concerned that Veloso’s preventive suspension has already been lifted, even as these serious allegations have yet to be fully investigated. Such action undermines accountability and threatens to erode the trust and confidence of millions of government employees and retirees who depend on GSIS for their social protection and retirement security,’ the PSLink added.