Members of the Board of Trustees of the Government Service Insurance System (GSIS) are not letting president and general manager Jose Arnulfo “Wick” Veloso off the hook by issuing a new statement seeking a review of Veloso’s questionable investments.
Joined by former officials of the state pension fund, they accused Veloso of promoting what they called “illusory growth metrics” to paint a false picture of financial strength.
The trustees cited the Mercer CFA Institute Global Pension Index 2025, which ranked the Philippine pension system among the weakest globally. They warned that continued mismanagement could further erode trust in the country’s already fragile retirement safety net.
They urged immediate transparency and accountability, saying that only a “rigorous examination of tangible performance and procedural integrity” can safeguard the fund’s long-term stability.
“Only through an honest assessment of the facts can we truly protect the future of the fund and the welfare of its members,” they said.
The statement was signed by current Audit Committee Chairperson Rita Riddle, incumbent trustees Ma: Merceditas Gutierrez and Evelina Escudero, and former board members Alan Luga and Jocelyn Cabreza.
They described the situation as a “failure of governance” and called for a comprehensive investigation into the investment decisions made under Veloso’s leadership.
The statement, issued days after several trustees formally demanded Veloso’s “immediate and irrevocable” resignation, said the state pension fund incurred P8.8 billion in losses due to investments described as “risky, underperforming, and insufficiently vetted.”
According to the trustees, GSIS’ reported asset growth was “predicated on misleading metrics and structural inflows” rather than actual investment gains. They noted that much of the increase stemmed from unrealized property revaluation gains and automatic premium collections from its mandatory membership base — features that they said do not reflect sound or strategic fund management.
“The true, dependable income of the GSIS continues to be derived from its legacy investment portfolio established before the current administration,” the statement said.
In contrast, it asserted, most of the investments introduced or endorsed by Veloso “have overwhelmingly underperformed,” with many now posting significant losses.
The trustees further said that weak internal controls and attempts to bypass established governance protocols compounded the losses. They accused Veloso of proceeding with high-risk investment ventures “without proper board review, scrutiny, or risk assessment.”
“The very purpose of a board review is to provide a crucial layer of scrutiny, risk assessment, and collective judgment,” the statement said. “It was precisely by evading this process that PGM Veloso was able to proceed with the underperforming ventures that have now resulted in substantial losses.”
Earlier, the anti-Veloso officials pointed to several transactions as having contributed to the P8.8-billion loss. Flagged were controversial investments in AlternergyHoldings Corp., Figaro Coffee Group, Udenna Land Inc. and 8990 Housing Development Corp. all of which they described as “risky and imprudent.”
They also raised concern over GSIS’ exposure to private equity funds managed by Neuberger Berman and NightDragon, warning that these introduced “a grave and unacceptable level of risk” to members’ retirement savings.
Anyone claiming that the situation at the most prominent state social insurer is calming down has misread the situation.