HOME PAGE ABOUT US CONTACT US SUBSCRIBE ADVERTISE ARCHIVES
TOP STORIES NATION ECONOMY COMPANIES SHIPPING OPINION PERSPECTIVE LIFE SPORTS BANKING
SEARCH ENGINE
WWWOur Site
Anchored by Jonathan dela Cruz, Salvador Escudero, Boying Remulla, Teddy Boy Locsin and Alvin Capino
Monday to Friday
8:00pm-10:00pm

ARTICLE SERVICES
  • bookmark this page
  • print this article
  • view archive
  • GSIS sued for remitting P1B to Palace in 2004

     

    By Zaff Solmerin

    Correspondent

     

    THE top official of the Government Service Insurance System (GSIS), along with the board of the agency’s board of trustees, are in hot water after two separate criminal and administrative complaints were filed against them before the Office of the Ombudsman by three groups who accused them of illegally remitting P1 billion in unassigned surplus of the Government Insurance Fund to the Office of the President instead of the National Treasury.

    Named respondents were GSIS president and general manager Winston Garcia; board of trustees chairman Bernardino Abes and board members Victoria Ablan, Jesse Andres, Mario Ramirez, Esperanza Ocampo, Reynaldo Palmiery, Alejandro Roces, Jesus Santos and Nita Javier.

    The complaints were filed by lawyer Alberto Velasco, former president of the Kapisanan ng mga Mangagawa sa GSIS, and Miguel Miram, founding member of the Parents-Teachers Coalition for Advancement, along with Luz Pacete of the School Association of Parents Anti-Crime.

    In view of the charges, the complainants asked the Ombudsman to order the preventive suspension of Garcia and the other GSIS officials to protect the integrity of the investigation and ensure that documents pertaining to the illegal disbursements are not stolen or destroyed, and to encourage witnesses to come out.

    Miram and Pacete claimed the respondents committed usurpation of legislative functions when they passed Board Resolution 188 on August 13, 2003, that decreased the “survivorship benefits provided by law.”

    “[The] GSIS Board Resolution … is a gross and brazen abuse on the part of Garcia and the Board of Trustees, as it amends a law when they have no such lawmaking powers,” the complaint said.

    The resolution provides that the benefits to be paid to retiring members shall be limited to the extent of their contributions that were remitted to the GSIS.

    Thus, if a retiree’s office failed to remit the contribution, the retiree will not be given any benefit, although his contributions were collected by his employer.

    The complainants also accused Garcia and members of the board of illegally passing Board Resolution 255 on December 6, 2004, for the remittance of the P1-billion fund to Malacañang.

    They said the respondents’ action violated Republic Act 8291, or the GSIS Act of 1997; Article 239 of the Revised Penal Code, or Usurpation of Legislative Functions; Antigraft and Corrupt Practices Act; and administratively for grave misconduct under RA 6713, or the Code of Conduct and Ethical Standards for Public Officials and Employees.

    Under the law, the complainants said, disposal of unassigned surplus from the Government Insurance Fund shall be apportioned in accordance with the schedule approved by the system, among the government agencies whose properties are insured in the fund.

    “This scheme and practice of the accused in delivering monies of the GSIS to the Office of the President is illegal, unlawful, and immoral.” They blasted the “penchant of the accused in sucking up to the powers that be by delivering monies to it, a departure from the GSIS’s practice in the past of coursing through the National Treasury any unassigned surplus to government agencies.”

    The complainants are confident the Ombudsman will exercise its independent power to thoroughly investigate the charges and finally find probable cause against the accused that would warrant the charges to reach the Sandiganbayan for prosecution.

    Garcia is a close ally of President Arroyo and has been in the limelight in recent months for his key role in shaking up the boardroom of the country’s largest power distributor, Meralco, a gambit seen in some quarters as a thinly veiled takeover by the government of the company majority-owned by the Lopezes, whose media units are often critical of the administration.

    The GSIS scoffed at the filing of the complaint before the Ombudsman.

    However, Estrella Elamparo, the agency’s chief lawyer, said that the GSIS board of trustees turned over the P1 billion “to the national coffers pursuant to Republic Act 656.”

    She did not say if the GSIS considers the Office of the President as “national coffers.”

    Elamparo pointed out that RA 656 mandates the GSIS to remit whatever unused or surplus earnings the agency has from its General Insurance Fund (GIF), which is distinct and separate from the GSIS Social Insurance Fund (SIF).

    “The benefits of GSIS members are derived from its Social Insurance Fund and not from the GIF. The P1 billion did not in any way diminish the funds allotted for the benefits of GSIS members,” she said.

    “As a matter of fact, GSIS members also received dividends totaling P847 million in December of 2004, which came from the GSIS SIF,” Elamparo added.

    “The P1 billion that went to the national coffers came from the GSIS GIF, the P847 million that went to GSIS members came from the GSIS SIF. This should be illustrative enough of the senselessness of the claim that the GSIS raided the funds due GSIS members so it can give P1 billion to the government,” she stressed.

    The SIF is where the contributions of GSIS members are kept while the GIF is the repository of the GSIS investment funds and earnings from its businesses.

    The P1-billion turnover was the first in eight years, 1997 being the last time the government received dividends from the GSIS in the amount of P200 million, Elamparo added.

    OTHER STORIES

    Insurers to fight GSIS on CTPL


    Markets decline all around on Fannie


    Investor sentiment in RP down


    P4 billion more for Katas


    Iraq envoy


    Power privatization


    GSIS sued for remitting P1B to Palace in 2004


    Government urged to nix Nama proposals


    New export services


    5mo. remittance