THE Government Service Insurance System (GSIS) asked Congress to provide a clearer policy direction on its investments, following Senator Risa Hontiveros’ concerns over its P1-billion investment in online gambling firm DigiPlus.
GSIS President and General Manager Jose Arnulfo A. Veloso emphasized that the state pension fund’s mandate is to grow and protect members’ contributions through investments that are legal and transparent.
‘We would like to get the wise wisdom of this committee and your chamber. We are just being obedient, if this is what the people want, let us change the policy so we could be guided,’ Veloso said mostly in Filipino.
‘We were told that if the company is legal and listed by the Philippine Stock Exchange, then we could invest in it.’
The pension fund chief clarified that investments are made within strict guidelines, with focus on profitability, liquidity, and security.
Veloso highlighted that the GSIS portfolio remains largely concentrated in low-risk assets, including government bonds, loans to members, and income-generating real estate properties.
Citing the pension fund’s performance, Veloso said GSIS assets reached P1.88 trillion in the first half of the year, an increase from P1.54 trillion in 2022.
Net income in the first half of the year climbed to P77.82 billion, marking a 30 percent increase from the same period last year.
He said the actuarial life of the GSIS fund is secured until 2058, reflecting the sustainability of its investment strategy and its capacity to meet the obligations of future retirees.
Still, Senator Risa Hontiveros pressed Veloso on why GSIS chose to invest in DigiPlus, despite the social costs associated with online gambling.
Veloso acknowledged these concerns but clarified that the investment decision was based strictly on financial and legal considerations.
‘I cannot impose my own moral standards because our duty is to be able to grow the fund,’ Veloso said.
Meanwhile, the Commission on Audit (COA) flagged the DigiPlus investment and recommended that GSIS prepare recovery plans for its stock exposures ‘at a term not disadvantageous to the fund.’
COA further advised GSIS to review its investment policy guidelines and align them with the GSIS Charter, which outlines limitations on fund placements.
Veloso said the fund has already drawn up recovery plans covering DigiPlus and other equity holdings identified by the audit.
However, he explained that the fund is waiting for more stable market conditions before executing any recovery plans