Another lawmaker has called on the House of Representatives to investigate the allegedly ‘risky’ investments made by the Government Service Insurance System (GSIS), which led to losses of over P8.8 billion.
In a statement on Tuesday, Mamamayang Liberal Party-list Rep. Leila de Lima said she has filed House Resolution (HR) No. 414, asking the appropriate House panels to investigate the issues.
‘There is an urgent need to immediately investigate the questionable investment decisions of the GSIS and to undertake a comprehensive review of the policies, procedures, and guidelines governing its investment operations, as well as those of similar institutions, in order to strengthen compliance and oversight mechanisms, enhance transparency and accountability, and address policy gaps and ambiguities that have allowed such risky and imprudent transactions to occur,’ de Lima said.
‘The House of Representatives, in the exercise of its oversight functions, should conduct an investigation into the transactions and investments made by the GSIS to determine whether these comply with the fundamental requirements of liquidity, safety, and yield necessary to maintain the actuarial solvency of the fund,’ she added.
De Lima’s resolution, filed on Monday, also cited the letter from current and former high-ranking officials of GSIS who have called for the ‘immediate and irrevocable’ resignation of GSIS president and general manager Jose Arnulfo ‘Wick’ Veloso due to ‘poor investment decisions.’
At one point, de Lima showed the investments mentioned in the letter:
Monde Nissin Corporation Four large trades between March 15-20, 2023, totaling P4.8 billion, structured to evade oversight. The investment has lost P1.4 billion
Nickel Asia Corporation – Two trades on April 12-13, 2023 worth P1.5 billion, resulting in P618.6 million in losses
Bloomberry Resorts Corporation – A P1.45 billion investment on a single day, divided into two transactions, now down by P901.9 million
DigiPlus Interactive Corp. – Two trades in June 2025 totaling P1.2 billion, with current losses of P749.5 million
Alternergy Holdings Corporation – COA found violations of the GSIS Charter, citing lack of profitability history, missing approvals, and non-traded stock purchases.
Figaro Culinary Group, Inc. – Proposed P456 million investment violated the Investment Policy Guidelines (below P15B market cap, excessive exposure). The responsible officer allegedly attempted to pressure the Board for approval
Private Equity Investments – Proposed participation in funds by Neuberger Berman and Nightdragon deemed impermissibly high-risk and illiquid, violating the GSIS’s fiduciary duty to preserve capital
Udenna Land, Inc. – Proposal to fund Clark Global City was viewed as a corporate bailout, contrary to the GSIS’s mandate to pursue prudent, low-risk investments
8990 Housing Development Corporation – Plan to purchase condominium units in bulk for resale was described as speculative and outside GSIS’s mandate, exposing members’ funds to real estate market risks
Acquisition of The Centrium – The proposed purchase was marred by fiscal, legal, and valuation irregularities: (a) Overvaluation errors by the Parañaque Assessor’s Office (P2.6B) and COA Technical Audit (P6.4B), (b) The lease purchase scheme was deemed an attempt to circumvent procurement laws, and (c) Overall, the deal was considered legally and financially indefensible, exposing GSIS to severe liability
‘Reports from the GSIS Board revealed that certain investment transactions were deliberately divided into smaller tranches to evade board oversight exceeding P1.5 billion, with others exceeding allowable exposure limits in violation of GSIS investment rules,’ de Lima noted.
Aside from de Lima, lawmakers from the Makabayan bloc have also filed a separate resolution, calling on the House to probe the matter, particularly GSIS’s investments in an online gambling site.
According to HR No. 415 filed by ACT Teachers party-list Rep. Antonio Tinio, Gabriela party-list Rep. Sarah Elago, and Kabataan party-list Rep. Renee Co, government employees like teachers and health workers have been contributing to the GSIS fund only for the management to invest these money into activities that are supposedly detrimental to society, like online gambling.
‘While teachers, education support personnel, public health workers, and other government employees sacrifice portions of their already meager salaries for their GSIS contributions, trusting that their money will be invested wisely and ethically so that they can receive their benefits whenever they need them, it turns out that the GSIS is funding an industry that destroys families and communities through gambling addiction,’ they added.
Last October 14, the following GSIS officials called for Veloso’s resignation:
Ma. Merceditas Gutierrez, chair of the legal oversight committee
Emmanuel de Leon Samson, chair of the risk oversight committee
Rita Riddle, chair of the audit committee
board member Evelina Escudero
former board members Jocelyn de Guzman Cabreza and Alan Luga
According to the letter dated October 14, 2025, Veloso was accused of pursuing risky investments ‘marked by a disturbing lack of transparency.’
Gutierrez, Samson, and Riddle eventually submitted their respective resignations to President Ferdinand Marcos Jr., citing deep divisions over Veloso’s investment strategies.
Last October 20, Palace press officer and Undersecretary Claire Castro said that Marcos is well aware of calls to remove Veloso and issues hounding GSIS, adding that the Chief Executive is studying allegations against the GSIS head.
Despite the issues raised, Veloso has defended the GSIS’ investments, noting that GSIS had already made P139 million from its exposure to online gaming firm DigiPlus, while its P1.45-billion investment in Alternergy, a renewable energy developer, could yield P2.22 billion within seven years, ‘or a 56 percent return.’
‘When you are in the investment business, you make calculated risks; you do research; you study. We invested in a legal listed corporation in the Philippines,’ Veloso said during a Kapihan sa Manila Bay forum last September 24.
‘When you invest in equities, you need to understand that they have volatilities,’ he added.