Notable business organizations in the country have sounded the alarm over alleged governance and accountability issues within the Government Service Insurance System (GSIS), implicating its president and general manager, Arnulfo “Wick” Veloso.

“The Institute of Corporate Directors (ICD), the Financial Executives Institute of the Philippines (FINEX), the Institute for Solidarity in Asia (ISA), and the Justice Reform Initiative (JRI) express serious concerns over recent reports at the GSIS, which raise questions about corporate governance and accountability within this vital state-run pension fund,” the groups said in a joint statement on Wednesday.

According to the organizations, the disputes between Veloso and members of the Board of Trustees (BOT) over major investment decisions and the scope of executive authority are deeply concerning.

“The conflict challenges the core principles of fiduciary duty, transparency, and oversight of the board, which are crucial for all Government-Owned or -Controlled Corporations (GOCCs) managing public funds,” they said.

Earlier, former GSIS trustees accused Veloso of overseeing billions in investment losses while allegedly promoting “illusory growth metrics” to project false financial stability.

The groups noted that the Office of the Ombudsman has been tasked with verifying the allegations raised by the resigned trustees.

“Our foremost concern is that these internal disputes may erode confidence, thereby undermining trust in the fund’s stability—a cornerstone of the nation’s economic and social well-being,” the statement said.

They also called the GSIS situation a critical opportunity to strengthen governance standards across all GOCCs and outlined key measures that should be enforced immediately, including:

• Clear reinforcement of board authority: ensuring that the BOT’s power in setting major policies and approving high-risk or non-standard investments is “unambiguous and paramount.”

• Enforceable accountability: managing the dual accountability of GOCC executives through internal governance structures that prioritize fiduciary duty.

• Strict compliance and transparency: tightening financial and investment protocols to prevent actions that undermine board oversight.

Lastly, the groups urged a “thorough and impartial resolution” of the GSIS controversy, calling on the agency’s leadership and the Governance Commission for GOCCs (GCG) to conduct a comprehensive review to clarify authority and accountability.

“We stand for strong corporate governance. The sound, ethical, and transparent management of public funds by all GOCCs is non-negotiable for securing the nation’s future and ensuring the trust of the Filipino people,” the group emphasized.

Amid growing calls for Veloso’s resignation, the GSIS chief said Tuesday that he would “not resign unless President Ferdinand Marcos Jr. tells him so.”