Hontiveros flags unregistered P1B GSIS gambling investment

Senator Risa Hontiveros on Friday raised alarm over the Government Service Insurance System’s (GSIS) controversial P1 billion investment in an online gambling platform, revealing that the investment was not registered with the Securities and Exchange Commission (SEC) at the time it was purchased.

“Naku po, napag-alaman na naming una na hindi rehistrado sa SEC 'yung mga shares na 'yun sa petsang nagkaroon ng kasunduan at talagang binili 'yan (We already found out that those shares were not registered with the SEC on the date the agreement was made and they were actually bought),” Hontiveros said in a television interview.

Her remarks came in response to the GSIS's earlier defense of the investment, where the agency assured the public that the social insurance fund remains strong, secure, and actuarially sound.

According to its statement on Monday, GSIS reported total assets of P1.88 trillion and a P76.82 billion net operating income as of June, marking a 31% increase compared to the same period last year.

GSIS also pointed to its consistent five-year average return on investment of 6.75%, arguing that its portfolio remains profitable and well-managed.

However, Hontiveros pushed back, citing concerns raised by the Commission on Audit (COA) regarding high-risk investments like the one in question.

“Mismong ang Commission on Audit ang nagbabala na sa ganiyang mga investment ng GSIS. In fact, nanganganib 'yung actuarial life ng GSIS o ng pension funds ng ating mga government employees (The Commission on Audit itself warned that such investments by GSIS endanger the actuarial life of GSIS or the pension funds of our government employees),” she lamented.

Hontiveros further criticized GSIS for what she described as a breach of fiduciary responsibility, saying the agency failed to safeguard the hard-earned contributions of government workers.

“Higit pa nga d'yan sa actuarial life, ay hindi talaga daw in-exercise ng GSIS 'yung fiduciary responsibility sa paghawak nila ng pondo ng ating government employees (More than just actuarial life, GSIS has not truly exercised its fiduciary responsibility in handling the funds of our government employees),” she said.

It was Hontiveros who first brought the issue during her privilege speech on Tuesday and has since called for a Senate investigation.

She said she looks forward to GSIS's cooperation in the upcoming probe.

Meanwhile, Hontiveros reiterated her stance against online gambling, announcing that she has filed a bill that aims to impose the strictest regulatory measures on the industry.

“Pagdating po sa online sugal, naghain po ako ng aking panukalang kontra e-sugal na nagsusulong ng pinakastriktong regulasyon (When it comes to online gambling, I have filed an anti-e-gambling bill that advocates for the strictest regulation),” she said.

Among her bill’s provisions are the prohibition of e-wallet and superapp integration with online gambling, and a ban on advertising across traditional media, digital platforms, and public spaces.

“Hindi casino ang ating mga cellphones (Our cellphones are not casinos),” Hontiveros emphasized, adding that cutting off financial access and visibility is key to minimizing the harm caused by online gambling.

President Ferdinand R. Marcos Jr. earlier defended his decision to exclude the issue of online gambling from his recent State of the Nation Address (SONA), emphasizing that the government must prioritize addressing its social impact rather than pushing for an outright ban.

Growing threats, creeping disease

In a separate statement on Friday, Senator Sherwin Gatchalian also warned about the growing threat of online gambling in the Philippines.

He urged the government to take immediate and decisive action to prevent what he described as an “impending social crisis,” particularly among the country’s youth.

Gatchalian expressed deep concern over the increasing accessibility and addictiveness of mobile casino apps, which allow users to gamble anytime and anywhere.

“If the country does not do anything, this addiction will spiral out of control, especially among our youth. Betting your hard-earned money on mobile casino apps anytime and anywhere is just too convenient,” he said.

Gatchalian then proposed that the government commission an independent industry expert to conduct the research, arguing that the Philippine Amusement and Gaming Corporation (PAGCOR) should be excluded from the process due to a conflict of interest.

“PAGCOR should not undertake this study as it has a self-interest to preserve,” he said. “The study should include, among other things, the technology that can effectively and completely block websites and apps from offering online gambling in our country.”

Describing online gambling as a “creeping disease,” Gatchalian warned that it is gradually eroding the country’s moral foundations and endangering the welfare of families and communities.

“This online gambling is a creeping disease that is slowly eating up our moral fiber,” he said. “The government needs to act fast.”