Pressure is mounting inside the Government Service Insurance System (GSIS) as several current and former members of its Board of Trustees formally called for the immediate and irrevocable resignation of president and general manager (PGM) Jose Arnulfo “Wick” Veloso, citing what they described as “gross mismanagement, repeated violations of GSIS policies, and an alarming erosion of public trust.”

In a detailed letter dated 14 October, a copy of which was obtained by DAILY TRIBUNE, the signatories — composed of trustees and former board officials from the legal, audit, and risk oversight committees — accused Veloso of presiding over a series of high-risk, non-compliant investments that resulted in P8.8 billion in cumulative losses.

Questionable transactions

The letter singled out several major investments that raised red flags within the board. These included large-scale transactions involving Monde Nissin Corporation, Nickel Asia Corporation, Bloomberry Resorts and DigiPlus Interactive Corp., which collectively accounted for over P3.6 billion in realized losses.

The board said that some of the trades were split into smaller tranches to evade board oversight, while others exceeded allowable exposure limits under GSIS investment rules.

In addition, the Commission on Audit (CoA) flagged a P748-million private equity purchase made without the required board approval, describing it as a violation of the GSIS Charter. This transaction led to the preventive suspension of Veloso and several GSIS officials by the Office of the Ombudsman earlier this year pending an investigation.

Risky bailouts, property gambles

Among the more controversial decisions under Veloso’s watch was the proposed use of GSIS funds to support private ventures such as Udenna Land’s Clark Global City project, which critics said had “no direct benefit to members.”

The letter also cited the Centrium property acquisition, along with several large-scale real estate purchases intended for resale, as “reckless gambles” that exposed the pension fund to unnecessary financial and legal risks.

“These are not investments for pension security — they are speculative bets,” one trustee was quoted as saying.

Governance issues and alleged retaliation

The signatories further accused Veloso of circumventing governance procedures, retaliating against dissenting trustees, and falsifying records to justify questionable transactions. They said that several senior officials who questioned these actions were reassigned, sidelined, or pressured to resign.

“PGM Veloso’s actions have undermined collegiality in the board and placed the GSIS in reputational peril,” the letter stated.

Call for ethical leadership

The group called Veloso’s resignation “the only honorable and viable course of action” to restore confidence among members and ensure the stability of the country’s second-largest pension fund, which safeguards the retirement savings of 2.6-million government employees.

They warned that Veloso’s continued leadership would further erode the credibility of the institution — and, by extension, the administration’s reform agenda.

Among the signatories were trustees representing the legal, audit, and risk oversight committees, along with former GSIS executives and appointed reform advocates — which emphasized the seriousness and bipartisan nature of their call.

Awaiting response

As of press time, Veloso and the GSIS management had yet to issue an official statement on the matter. However, sources within the agency said that internal discussions were underway and the Department of Finance — the GSIS’ supervising body — has been informed of the board’s recommendation.

The controversy marks one of the most serious governance crises to hit the GSIS in recent years and could trigger a broader review of how the pension fund manages its multibillion-peso investment portfolio.

Veloso suspended, reinstated

In July 2025, the Office of the Ombudsman placed Veloso and several other officials under six months of preventive suspension without pay over a P1.45-billion investment in preferred shares of Alternergy Holdings Corp. The CoA earlier flagged the investment as a violation of the GSIS Charter and internal investment regulations.

The Ombudsman said there was sufficient ground to suspend Veloso and his co-respondents for grave misconduct, gross neglect of duty, and disregard of procurement and investment protocols — a move intended to prevent them from influencing the probe.

However, after reviewing the case records, the Ombudsman lifted their suspension in September 2025, noting that all relevant documents had been secured and that Veloso’s continued presence in office would no longer affect the investigation.

Veloso and four officials were reinstated, while two others who had left the agency were excluded.