Senator Risa Hontiveros on Tuesday revealed that the state-run Government Service Insurance System (GSIS) has invested P1 billion in a private online gambling firm, DigiPlus, owned by casino operator and Negros Occidental Congressman Albee Benitez.

“In recent weeks, news articles have started to shine light on the P1 billion investment of GSIS in online gambling platform DigiPlus. You heard that right, Mr. President and dear colleagues. Pinaka-nakakagulat sa lahat, nag-invest ang GSIS ng lagpas P1 billion sa online sugal! Pinasok ito ng GSIS when DigiPlus’ shares were being offered at a peak of P65.30. Those shares have since hit a low of P13.68. LUGI NA!” said Hontiveros in a privileged speech on Tuesday.

She said the investment was made during the tenure of suspended GSIS President and General Manager Jose Arnulfo “Wick” Veloso—a clear dishonor to the 2,736,710 members of GSIS, including teachers, police, traffic enforcers, government doctors, nurses, and other public employees.

“In the first place, what was GSIS thinking, investing funds in online gambling?! Eh tayo nga po, mga kasamang nagtatrabaho sa gobyerno, ni hindi pwedeng tumungtong sa casino lalo na hindi pwedeng magsugal doon. Kaya bakit ang GSIS, todo taya, at ginawang puhunan ang pera ng public employees sa sugalan?” she asked.

Hontiveros raised the issue amid calls from various lawmakers — and even Malacañang — to curb online gambling in the country due to its harmful social impact.

“So why is GSIS doing the opposite? Why is GSIS investing the retirement money of public servants in seemingly expanding the e-gaming industry? We need explanations. And unfortunately, Mr. President, this is just the tip of the iceberg,” the senator said.

By law, GSIS has the fiduciary duty to invest its members’ contributions wisely, ensuring they meet the requirements of “liquidity, safety or security, and yield to guarantee the actuarial solvency of the funds,” Hontiveros emphasized.

“Yung mga nagtatrabaho sa gobyerno, gaano katagal na kayo? 10, 20, 30 years? Tapos hindi pala inaalagaan, hindi pala sinisiguro, hindi pala ginagarantiya yung pondo natin. Pagdating ng panahon, wala pala kayong tatanggaping pensyon?” she said.

Hontiveros also pointed to what she called a pattern of “reckless and questionable” investment decisions by GSIS leadership, saying “the guardrails we have put in place to guide and protect GSIS investments are seemingly being breached.”

Veloso and other GSIS officials were earlier suspended by the Office of the Ombudsman over a P1.45 billion subscription agreement with Alternergy Holdings Corporation for the purchase of 100 million perpetual preferred shares.

“According to the Ombudsman, Veloso and his fellow GSIS officials may have committed serious misconduct when they agreed to purchase Alternergy’s Perpetual Preferred Shares without the approval of the GSIS Board of Trustees, and in clear violation of the GSIS’s investment policies and guidelines,” Hontiveros disclosed.

The deal was made without endorsement from GSIS’s Assets and Liabilities and Risk Oversight Committees.

“Glaringly, Alternergy's market capitalization was far below the P15 billion minimum reportedly required under GSIS policy for investible companies. The shares were not even listed with the Philippine Stock Exchange on the dates of the execution of the agreement and the payment of the subscription,” she said.

Moreover, Hontiveros said Alternergy also appears to be “highly overleveraged.”

“Simply put, they have too much debt, with a debt-to-equity ratio of 194% and a dangerously low interest coverage rate. Paano nakapagdeklara ng ₱40 million cash dividend ang kompanya na iyan, eh puro sila utang, at in financial distress na?” she asked.

Hontiveros also flagged GSIS’s 0.82 percent stake in Del Monte Pacific, a company facing a reported $2.3 billion in debt and massive financial write-offs.

“This investment has already incurred an estimated paper loss of P19.1 million for GSIS, representing a 32.5 percent decline in its stake. This is why the Senate should act swiftly to review the policies, procedures, and guidelines covering the GSIS’s investment decisions. We should strengthen GSIS’s investment policy compliance and oversight. We should increase transparency and accountability in their investments. And we should plug policy gaps and clarify ambiguities,” Hontiveros said.