Wick’s ship takes water
After being bombarded by media and other sources regarding its sour investments, the state pension fund, Government Service Insurance System (GSIS), had softened up.
GSIS president and general manager Jose Arnulfo “Wick” Veloso is under a six-month suspension as the Ombudsman looks into complaints of indiscriminate investments that led to considerable losses in the purchase of Alternergy shares.
“We welcome the scrutiny and call for public disclosure from various sectors, and we are prepared to present all relevant documents and data to the appropriate authorities,” the GSIS said in a statement yesterday.
“As stewards of the public trust, we affirm our unwavering commitment to act in the best interests of our members and pensioners,” the statement added.
“The GSIS social insurance fund remains strong, secure, and actuarially sound. As of June 2025, GSIS has total assets of P1.88 trillion and recorded a net operating income of P76.82 billion, representing a 31-percent increase compared to the same period last year.”
We have consistently enjoyed a five-year average return on investments at 6.75 percent, it added.
Yet, the GSIS has experienced an estimated paper loss of P19.1 million, representing a 32.5-percent decline in its 0.82-percent stake in Del Monte, which is burdened with a $2.3 billion debt and is facing massive write-offs.
The investment of P1.45 billion in 100-million perpetual Alternergy preferred shares has been flagged by the Commission on Audit as part of a P2.308-billion allocation in three companies, contributing to a total valuation loss of P251.37 million across these investments.
The specific loss attributable to Alternergy alone is not isolated in the sources, but the investment is under scrutiny for violating GSIS policies, and the company’s market capitalization is significantly below the required threshold, with its stock trading at P1.06 after falling from an IPO price of P1.28.
Thus far, the state pension fund’s losses run into hundreds of millions of pesos.
GSIS invested over P1 billion in DigiPlus shares at a peak price of P65.30, which later plummeted to as low as P13.68, representing a nearly 80 percent decline in value.
The estimate is that GSIS’ loss may run to P800 million, assuming the full P1 billion investment was made at the peak price.
The known loss for Del Monte is P19.1 million, while the Alternergy investments’ specific loss continues to flow. GSIS is under scrutiny for violating its policies. Lately, Alternergy stocks traded at P1.06 after falling from an initial public offer price of P1.28.
Veloso’s armada of GSIS investments is dangerously floundering and would likely go under.