The embattled president of the Government Service Insurance System (GSIS), Jose Arnulfo “Wick” Veloso, is facing scrutiny over yet another controversial investment — this time involving debt-laden food conglomerate Del Monte Pacific.

Senator Risa Hontiveros on Tuesday exposed what she described as a “pattern of reckless investments” under Veloso’s leadership, citing GSIS’s 0.82 percent stake in Del Monte Pacific as another red flag in the state pension fund’s investment portfolio.

“This investment has already incurred an estimated paper loss of P19.1 million for GSIS, representing a 32.5 percent decline in its stake,” Hontiveros revealed during a privilege speech at the Senate.

The senator pointed out that Del Monte Pacific is “teetering under $2.3 billion in debt” and struggling with massive write-offs — yet the GSIS has refused to divest.

"But despite repeated warnings to officials when the value dropped, the GSIS still refuses to pull out of Del Monte Pacific," she said.

"It seems like the money of our public servants is being toyed with and allowed to go to waste."

The latest disclosure adds to the list of questionable investments made under Veloso’s watch, including the now-infamous P1-billion bet on online gambling firm DigiPlus, and the P1.45-billion unapproved subscription to Alternergy Holdings Corporation’s preferred shares — an act that led to Veloso’s preventive suspension by the Office of the Ombudsman.

Hontiveros blasted the GSIS for risking the hard-earned contributions of 2.7 million government workers on volatile and ethically dubious ventures.

“In the first place, what was GSIS thinking, investing funds in online gambling? We government workers aren’t even allowed to set foot inside a casino, much less gamble there. So why is GSIS going all in — using public employees’ money to bet on gambling?” she asked in a previous speech.

That DigiPlus investment, made when shares were priced at P65.30, has reportedly plummeted to as low as P13.68 — a catastrophic loss in market value.

Now, the spotlight shifts to the continued investment in Del Monte Pacific, owned by Jose “Butch” Campos. Despite clear signs of financial instability, Hontiveros said, the GSIS continues to hold its shares.

“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,” Hontiveros stressed.

Veloso, along with other top GSIS officials, remains under preventive suspension for allegedly bypassing the GSIS Board of Trustees and violating internal investment protocols in the Alternergy deal.

According to the Ombudsman, Alternergy’s market capitalization was significantly below the GSIS’s minimum threshold of P15 billion for investible companies. Worse, the firm’s shares were not even listed on the Philippine Stock Exchange at the time of the deal.

“The actions of GSIS officials showed a blatant disregard for the very people whose contributions sustain the fund,” Hontiveros warned.
“When the time comes, will you end up with no pension at all?”

Hontiveros believes the GSIS is in desperate need of internal reform.

“The guardrails we have put in place to guide and protect GSIS investments are seemingly being breached,” she said.

“This is just the tip of the iceberg.”