GSIS continuously reviewing investment policies, Veloso says
THE GOVERNMENT Service Insurance System (GSIS) will continue to review its policies for investments after the agency’s president and officials were investigated for purchasing shares in a listed company.
“Policies will continuously be reviewed. But it will never change the result. For me, we will continue to find opportunities to grow the GSIS fund and ensure we follow our investment policy guidelines,” reinstated GSIS President and General Manager Jose Arnulfo “Wick” A. Veloso said in a briefing on Wednesday.
In an order dated Sept. 18, the Office of the Ombudsman lifted the preventive suspension on Mr. Veloso and four other officials as there was “insufficient ground to believe that their continued stay in office may prejudice the investigation of the case filed against the respondents.”
In July, the Office of the Ombudsman ordered the preventive suspension without pay for six months against Mr. Veloso and six other GSIS officials for purchasing P1.45 billion in preferred shares from AlterEnergy Holdings Corp. (AHC) under a private placement.
Mr. Veloso said on Wednesday that GSIS made “calculated” investments in AHC. He added that GSIS’ P1-billion investment in DigiPlus Interactive Corp. was able to yield P139 million in returns.
He added that GSIS will continue to invest in companies as long as they can generate returns.
“As long as it continues to pay dividends, as long as their business allows them to operate profitably, then we continue to generate money. And if our government says that that is no longer a legal investment, then we will immediately abide.”
Mr. Veloso said that 19% of the state-run pension fund’s income comes from equities, which is dependent on the performance of the stock market. Meanwhile, 5% comes from private equity, 40% from government securities, 20% from loans to members, 4% from cash and cash equivalents, and 12% from property investments.
He added that GSIS is looking to invest in properties in Metro Manila to boost its property portfolio.
It will continue to hold discussions for the construction of a transport hub in Quezon City, which is expected to rise on a three-hectare GSIS property at the corner of Elliptical Road and Commonwealth Avenue that it expects to boost its profit.
GSIS is also in talks with the Manila City Government for a housing project at the Manila pier. It also wants to help in the development of the Pasig River transport system, with plans to build an asset within the system such as a terminal.
The pension fund is also eyeing a development in the Jai Alai building across Rizal Park in Manila.
As of end-June, GSIS reported a net income of P77 billion, up by 30% year on year. — AMCS
