In fact, an internal committee of the SSS has all but allowed senior SSS officials to get away with leading an illegal strike. The penalty of one month’s basic pay is hardly enough. It will be recalled that the strike was called when so-called career officers of SSS resented the attempt of then SSS president Lanny Nañagas to look into the SSS investment mess.
What happened at SSS shows the inability of Ate Glo’s administration to establish what should be the principles of a Strong Republic. Simply, that is the rule of law. Not only did Ate Glo capitulate to the strikers at SSS by removing reform-oriented Nañagas, but she also allowed the strike leaders to be reinstated by a body composed of her appointees. These are no ordinary laborers. Their leader makes more than P300,000 a month basic.
But the investment mess at the pension fund must be investigated and the guilty parties punished. I caught an interview of SSS president Cora dela Paz at ANC with Cito Beltran and she explained why they need the additional contributions of employers into the fund. She kind of admitted there were investment failures, but she didn’t want to dwell on it, perhaps for internal peace at the SSS.
I can understand Cora’s concern. But is it right to just sweep anomalies under the carpet and merely let employers and, maybe later on, employees pay more to cover the negative impact on the trust fund? A recent issue of Biznews, a financial gazette published by veteran business reporter Lito Gagni, pointed out that the stock market losses of SSS and GSIS have reached an astronomical P20 billion.
In a lead story written by Gagni himself, Biznews reports that the losses are now being booked by the two pension funds on account of the rules under the Government Accounting and Auditing Manual. Gagni explains that "this is the reason for the deficiency in the actuarial reserves level of the SSS and GSIS for which they have sought increases in the premium contributions." SSS has assessed an additional five percent on premium contributions with the employers asked to shoulder the increase starting March.
The booked losses of the pension funds can, however, still be considered paper losses because both funds have not yet sold their stock holdings. Gagni estimates that the two pension funds may have to live with their paper losses for up to 15 years or more unless they decide to sell sooner and make their paper losses real. Among these investments are Best World or the infamous BW and Belle Resources, both Erap crony firms, neither of which have any real value now.
The other large investment of the pension funds is Equitable PCI Bank where SSS and GSIS each pumped in P7.5 billion to gain control. This excludes other normal purchases of the bank’s stock in the market. Biznews pointed out that Equitable is now trading at just a fifth of its value when the transaction was done indicating paper losses of P6 billion each for GSIS and SSS.
Biznews also identified Waterfront Philippines, another Erap crony firm, as another beneficiary of what is now considered a non-performing loan to the tune of P375 million. Biznews reports that its sources claim SSS has accumulated a large amount of non- performing loans valued at over P50 billion as of the beginning of January 2002.
The Ombudsman should take note and do a fresh investigation of what ails our pension funds. The new Ombudsman should disregard whatever arrangements may have been made in the past and do a thorough audit of his own because if there is something that is of continuing vital public interest, the management of SSS trust funds certainly is it.
The Social Security Commission which is like the Board of Directors of the SSS should stop allowing themselves to be blackmailed by the powerful clique within the system and start standing up for the rights of the pension fund members. So far, only Johnny Tan, an 80-year-old labor leader, is doing his sworn duty.
Good evening Mr. Chanco. I read your article today in the Philippine STAR. Just like you I had an opportunity to migrate out of the Philippines before I was 18 years old because my Mom was a Canadian citizen (petitioned by my older sister) and just like you I steadfastly refuse to migrate abroad. But unlike you I still believe in our country.
I am a product of the public school system for my education. A public elementary school, Philippine Science High School and the University of the Philippines in Diliman. I have always felt obligated to pay back this country whom I owe my education and I feel that there is something I can do for our country in spite of all the problems we are currently having.
I have nothing against those who leave the Philippines, but I believe that many of our basic problems stem from the fact that we don’t want to make sacrifices. That is why many of our youth would rather work for somebody else with a high starting pay than putting up his own business.
I have always believed that the solution to the problems in our country is more entrepreneurs who are willing to risk their whole lives trying to be successful rather than take the easy way out. I started my company Innovatronix with my last 15 days salary from Intel Semiconductors (my former employer) and in the past 15 years we have steadily grown.
One of the major reasons why I became an entrepreneur is that I would want to be a role model for young people in the field of technological entrepreneurship. I believe we would be able to do it in spite of all the problems that our country is currently having and I wouldn’t mind if it would take my whole lifetime to do it.
Please tell others that there are many people who believe differently and still believe in country. Mabuhay ang Pilipinas.
There was a preacher whose wife was expecting a baby. The preacher went to the congregation and asked for a raise. After much consideration and discussion, they passed a rule that whenever the preacher’s family expanded, so would his paycheck.
After six children, this started to get expensive and the congregation decided to hold another meeting to discuss the preacher’s salary. There was much yelling and bickering about how much the clergyman’s additional children were costing the church.
Finally, the preacher got up and spoke to the crowd, "Having children is an act of God!"
Silence fell on the congregation. In the back of the room, a little old lady stood up and in her frail voice said, "Snow and rain are also acts of God, but when we get too much, we wear rubbers."
Boo Chanco’s e-mail address is bchanco@bayantel.com.ph