Marcos wades into GSIS row

President Ferdinand Marcos Jr. will step into the controversy hounding the GSIS, particularly the reported loss of P8.8 billion from questionable investments allegedly made under the watch of president Jose Arnulfo Veloso.

Malacañang said Marcos will personally look into the allegations.

Mr. Marcos’ intervention also comes following trade organizations and contributors raising an alarm over questions of accountability and unsound governance at GSIS.

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

“Right now, the investigation into the matter is thorough. The President will not ignore all the allegations and will carefully study whether they are true. So you can expect the President to take action on this,” Palace Press Officer Undersecretary Claire Castro said.

In relation to the controversy, Veloso was urged to hand in his resignation, but he has denied the accusations and noted that the GSIS has even gained more funds.

Alarmed over feud

According to the business groups, disputes involving Veloso regarding his investment decisions and the scope of executive authority are serious matters.

“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 members of the GSIS Board of Trustees accused Veloso of overseeing billions in investment losses while promoting what they called “illusory growth metrics” to paint a false picture of financial strength.

Three GSIS trustees had resigned amid the board’s conflict with Veloso.

The GSIS, on Monday, welcomed the appointment of new board members Gilbert Tan Sadsad, Enrico Gregorio Molina Trinidad, and Cenon Cruz Audencial Jr. They replaced Ma. Merceditas Gutierrez, Emmanuel Samson and Rita Riddle.

“We look forward to working with them, knowing their extensive experience will be invaluable as we build on the pension fund’s historic gains,” the GSIS said.

Plea sent to Ombudsman

The business organizations said that determining the veracity of the allegations raised by the resigned trustees has been entrusted to the Ombudsman.

“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 stressed.

Further, the groups stated that the GSIS situation is a critical opportunity to reinforce governance standards across all GOCCs, recommending measures that should be instituted immediately, namely, a clear reinforcement of board authority; enforceable accountability; strict compliance and transparency; and a thorough and impartial resolution.

“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 stressed.

Amid calls for Veloso to resign amid the glaring mismanagement, Veloso said on Tuesday that he will not resign unless the President tells him to.