House inquiry into alleged losing GSIS investments sought; pension fund denies claims

A congressional inquiry into state-run Government Service Insurance System's (GSIS) supposedly high-risk investments that allegedly led to P8.8 billion in losses has been proposed in the House of Representatives.

Makabayan lawmakers Antonio Tinio of ACT Teachers, Sarah Elago of Gabriela and Renee Co of Kabataan party-list made the call under their House Resolution 415, referring to GSIS investments made under its president and general manager Jose Arnulfo "Wick' Veloso.

Information on GSIS’ current investment portfolio was not immediately available, as these were not broken down in the annual reports and audited financial reports uploaded on its website.

“While teachers, education support personnel, public health workers, and other government employees sacrifice portions of their already meager salaries for their GSIS contributions, trusting that their money will be invested wisely and ethically so that they can receive their benefits whenever they need them, it turns out that the GSIS is funding an industry that destroys families and communities through gambling addiction,” the resolution read.

The GSIS defended such investments by citing that these moves increased its total assets to P1.92 trillion, hiked its net income to P100.2 billion and extended the fund life of the pension fund to 2058.

The Makabayan lawmakers however said Veloso’s moves violated Section 36 (h) of the GSIS Act of 1997 which Iimits the powers of the Board to enter into investments by mandating, among others, that “investments shall satisfy the requirements of liquidity, safety/security and yield in order to ensure the actuarial solvency of the funds of the GSIS.”

As for common and preferred stocks of any solvent corporation, the same law provides that such corporation must be listed in the stock exchange with proven track record or profitability over the last three years and payment or dividends at least once during the same period.

Likewise, the legislators cited the findings of the Commission on Audit Audit Observation Memorandum No. GSIS-2024-17 (AOM) which flagged GSIS for investing a total of P2.308 billion in the stocks of Alterenergy Holding Corporation, SP New Energy Corporation, and Bank of Commerce which have no proven track record of profitability over the last three years and payment of dividends at least once every the same period contrary to Section 36 (h) of the GSIS law, exposing the significant amount or members’ contributions to high risk that the actuarial solvency of the fund may not be ensured.

An AOM is not a final finding and can still be rectified by the agency concerned, in this case the GSIS, before COA makes an annual audit report.

Further, the lawmakers said COA also noted that GSIS reported a total of P251.371 million valuation loss in 2023 of the common stocks of Alterenergy Holding Corporation, SP New Energy Corporation, and Bank of Commerce.

“Whereas, the House of Representatives must scrutinize these and many other questionable investments made using the fund entrusted by GSIS members and pensioners, weigh these ventures against existing laws and rules, and strive towards greater safeguards against dissipation of funds in favor of high-risk and speculative investments, more conscientious corporate management, and accountability for violations of GSIS executives and officials of their fiduciary trust,” the resolution read.

“Now, therefore, be it resolved, that the House of Representatives investigate, in aid of legislation, the reported anomalous investments made by the GSIS which expose the GSIS Social Insurance Fund of government employees and pensioners to high risks, in violation of the pertinent laws, rules, and regulations” the Resolution added.

The Makabayan Bloc also filed a resolution to investigate the GSIS’ non-declaration of annual cash benefit for life insurance policies and non-distribution of dividends to members.

The Makabayan Bloc also filed a resolution to investigate the GSIS’ non-declaration of annual cash benefit for life insurance policies & non-distribution of dividends to members. @gmanews @gmanewsbreaking pic.twitter.com/FFAdu6zOjl

— Tina PanganibanPerez (@tinapperez) October 27, 2025

The Office of Ombudsman initially issued a 60-day preventive suspension without pay on Veloso and other GSIS officials due to the same issues, but it has since been lifted because "there appears insufficient ground to believe that their continued stay in office may prejudice the investigation of the case filed against the respondents. Thus, the continued imposition of preventive suspension of the above-named respondents… is no longer necessary." 

In a statement, the GSIS said the supposed P8.8-billion loss is “baseless” and does not appear in the agency’s audited financial statements. The latest report available on its official website is for the calendar year 2022.

“As of August 2025, GSIS total assets have reached P1.92 trillion, with a net income of P100 billion. These figures clearly show that the fund continues to grow and remains secure,” Veloso said in a statement released Monday afternoon.

“Every investment undergoes rigorous evaluation by our Investment Committee, Risk Oversight Committee, and the Board of Trustees. Each transaction is subjected to due diligence and strictly complies with the investment policies prescribed under Republic Act 8291,” he added.

Veloso also noted that the GSIS has held recent dialogues with stakeholders such as the Teachers’ Dignity Coalition (TDC), Action and Solidarity for the Empowerment of Teachers (ASSERT), Philippine Government Employees Association (PGEA), the Philippine Alliance of Retired Educators (PARE), and the GSIS Retirees Association (GRAI) to clarify issues and ensure that the correct information is shared.

“We safeguard and grow the contributions of government workers through prudent, lawful, and transparent investments,” he said.

“We ask the public to refer only to official, audited reports for an accurate understanding of GSIS’s financial performance,” he added.

In a previous statement, however the GSIS explained that the "current dissent arises from a difference in perspectives on investment strategy and governance philosophy."

In August, Veloso said that GSIS' investments in Alternergy and DigiPlus have already yielded gains for the government.

Veloso said that the Alternergy investment had resulted in P117 million in terms of dividends in the first year. “That is renewable energy investment and its rate of return of investment is 56% within five years,” he said.

On Digiplus, Veloso said that the GSIS, upon careful study, took advantage of the low price of Digiplus’ stock, and that the company’s share has been growing since GSIS invested in 2023. He, however, did not give an exact amount of how much the government gained from this investment.

Meanwhile, three organizations representing bureaucratic workers and retirees expressed support for the current leadership of the GSIS under Veloso.

In a statement, the Philippine Government Employees Association  said, "Ang mga ulat ng 'pagkalugi' ay hindi namin nakikita sa aktwal na sitwasyon (The reports of 'losses' are not seen by us in actual situations)."

"Ang GSIS ay may maayos na pondo at patuloy na kumikita (The GSIS has a sound fiscal standing and is continuously earning)," said PGEA, which reports a membership of some 600,000 individuals.

The Philippine Alliance of Retired Educators, with 280,000 members, and the GSIS Retirees Association Inc. also conveyed their confidence in the direction that the GSIS is taking amid recent public discussions regarding its investments and governance. —KG/RF, GMA Integrated News