Putting common sense where it is a rarity

He is a big hunk of a man by Filipino standards, a roly poly. Yet he moves around with the crisp efficiency of a topnotch trial lawyer doing his thing in the courtroom, enthralling both the judge and the spectators with his keen sense of logic and gift of gab.

Indeed, Winston Garcia, president and general manager of the Government Service Insurance System (GSIS) can rattle off his thoughts like a seasoned disc jockey and not get lost in the seemingly endless train of ideas that effortlessly fleets by his mind.

This Cebu-based lawyer and retired trial court judge admits he was initially overwhelmed by the enormity of the task that laid ahead of him when accepted the GSIS post.

His awe, however, was short-lived. In no time at all, he was in control and not because he is an A-one technocrat who can unravel the complexities of running such a vast corporation – it‘s bigger than the food and beverage giant San Miguel Corp. in terms of net income.

"I am using this common sense approach to all problems. I don‘t want to complicate matters," he said.

Common sense tells him to leave complex matters like investments to the experts.

"Why worry when no one can really claim to be an expert in investments?," he asked.

GSIS will launch next month the first tranche of a P60-billion securitization program, involving the issuance of two-year bond.

"The only thing I can think of right now is to securitize this loan portfolio," he says, adding that the proceeds will, in turn, be invested in longer-term government securities.

He worries the fund’s current investment yield is only 11.9 percent which would hardly suffice to meet its future obligations to its members.

"We are a net operating company. We have this excess liquidity to be invested in activities earning 13 percent or more so that it can match our contingent liabilities to our members," he points out.

He reveals he will tap four global fund managers to the tune of $50 million each to handle GSIS investments. "You cannot match their collective wisdom. Even the Bangko Sentral is hiring fund managers to manage its funds. I can’t be more popish than the pope," he argues.

Garcia adds, however, that he keeps the prerogative of laying down the parameters of their service engagement, with yearly performance evaluation on the side.

With that, Garcia says he is freed of investment problems, enabling him to focus on "my real job" which is improving services to members of the state-run pension fund.

Enhanced services

On top of his list is full computerization, which he says had been the pet project of his predecessors.

"Perhaps, they thought it was just a matter of buying the equipment and the software program. That is wrong," he muses.

He says computerization requires fixing the data base first, and looking at the business aspect of the undertaking. That again, is something he will leave to the experts.

Also on the drawing board is the implementation of ATM and Touch cards designed to speed up payments of pensions and salary loans.

"Processing of retirement benefits should only be five working days, while salary loans should be released within 24 hours upon receipt. Complaints should be addressed within 10 days."

But first things first, there‘s got to be massive house-cleaning.

Garcia says he has drawn up a plan to attain utmost efficiency among his workers. To make it work, he will be giving away incentives.

"I am implementing a performance bonus scheme on the basis of how they perform on these targets. This is a team effort. There is peer pressure that you should work to the best of your ability."

"I want to encourage efficiency by rising the standards of performance. This is a first in GSIS," he asserts.

To drive home his management story, Winston directed the transfer of a large "Bayanihan" painting by Manansala transferred from the GSIS museum to his room, saying it embodies his philosophy of teamwork and close coordination.

Winston also reveals that starting next month, there would be no premium hikes, while monthly pensions will go up by 10 percent to 25 percent.

Those who retired within 1990 to 2001 will get a 10 percent increase; those from 1980 to 1989, 15 percent; those who retired within 1975 to 1980, 20 percent; 1975 and earlier, 25 percent.

Housing loan

Under Garcia’s stewardship, the GSIS also hatched up a P6-billion direct housing loan program with liberalized collateral requirements. The borrower can choose the design of his house from three models offered by the institution as well as enjoy full control of the construction aspect.

Members can also avail themselves of salary loans equivalent to their eight-month pay, repayable within 48 months.

Garcia says he intended to start his management of GSIS on a clean slate, and that included writing off bad investments made by previous administrations. "I have practically written off in our financial books our bad loans up to P9 billion, he says, adding that the move caused the decrease of GSIS’ net income from P29 billion to P20 billion.

Although he comes from a prominent political clan in Cebu, Garcia declares he has no political ambition for himself, but enjoys working "backroom strategist" for his relatives and allies.

During the recently-held May 14 congressional and local elections, Winston says Cebu delivered a solid 13-0 vote for the administration party People Power Coalition.

He says his family stuck it out with Lito Osmena even when he was no longer in power. "In politics, money is not the only consideration. It is the relationship that counts."