Press Release
October 6, 2008

As GSIS claims P 1.2 Billion growths abroad

Senator Chiz Escudero today said the Government Service Insurance System is obliged now more than ever to properly disclose its investment schedules abroad after it claimed to have gained 1.2 billion pesos under its global investment program (GIP).

He said the growth claim still leaves so much doubt because the GSIS failed and continues to refuse to provide details of where the supposed gain as of September 30 came from.

"From what date to what date was 5 percent gain calculated? It may have been computed prior to recent market crash".

"GSIS vaguely said it has invested $600 million of its $1 billion global investment program. They have not even showed anything to prove the extent of this investment, where and how the global investment is made. And now they want us to just accept their words at face value that the funds grew?"

If indeed the government employees' state pension fund grew, Escudero challenged GSIS to show the asset selection fund managers have made on behalf of GSIS and what proportions of these investments have gained.

He also urged GSIS to translate the supposed growth into efficient, effective and outright service to its members by way of immediate release of pensions to those who are claiming what is just rightfully theirs in the first place".

GSIS, he said, is no different from private corporations with stockholders and board members. Only, GSIS has members as stockholders who should be properly informed and notified on the state of their investments.

"Can they please tell the public how this supposed growth came to be? If they really want to avoid panic among their members, they should put everyone in a position to ascertain for themselves that their funds are intact, safe and remains to be properly invested for their protection".

GSIS President Winston Garcia ignored groups and individuals demanding for the agency's proper disclosure of its possible exposure in the US market following the collapse of its major investment and financial houses. He hit back at them saying their unfounded doubts are just driving the public in panic and agitation.

"Look who is putting the public in panic and continued jitters? Their continued refusal to publicly disclose where they put the government employees' money only fans the embers of doubt and insecurity among its members".

Escudero, chairman of the Senate Ways and Means Committee has been pressing GSIS to provide details on how much discretion was given to the fund managers with respect to how and where the GIP investments are to be made.

Fund managers are financial agencies selected by GSIS as the custodian of its funds and assets intended for global investment.

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