House probe sought on gov’t agencies’ investments in Megawide
LAWMAKERS from the progressive Makabayan bloc are seeking an investigation in the House of Representatives on the alleged huge losses of state social insurance agencies from investments in Megawide Construction Corp.
Bayan Muna Rep. Carlos Isagani T. Zarate, Ferdinand G. Gaite, and Eufemia C. Cullamat filed House Resolution 2397 calling for the Committee on Good Government and Public Accountability to investigate the matter.
“It is questionable why these pension agencies continue to invest in a corporation with a doubtful record,” according to a copy of the resolution.
The Social Security System (SSS) for private sector workers and the Government Service Insurance System (GSIS) for government employees hold 4.48% and 3.39% of total shares in Megawide, respectively.
The resolution comes after the Department of Justice (DoJ) indicted 15 key company executives for alleged violation of the Anti-Dummy Law in connection with the Mactan-Cebu International airport contract, which led to a recent slump in shares of Megawide.
The Makabayan lawmakers estimate that the total losses in the value of Megawide shares held by SSS and GSIS would amount to P1.61 billion.
“These staggering losses are truly lamentable, if it will be considered for instance that SSS is yet to fulfill its commitment to Congress to implement the second tranche of P1,000 pension increase,” they said.
Existing laws provide that all revenues of the SSS and GSIS that are not needed to meet administrative and operational expenses can be placed in a reserve fund for investments.
They also require that common and preferred stocks invested should come from a corporation with a proven record of profitability in the last three years and paid dividends at least once during the same period.
Shares in Megawide at the stock exchange declined by 3.92% or 21 centavos to close at P5.15 apiece on Tuesday. — Russell Louis C. Ku
