Former GSIS chief says he is ready to face audit

MANILA, Philippines - Former Government Service Insurance System (GSIS) president and general manager Winston Garcia said he is ready to face any investigation or audit of GSIS’ operations during his time.

Garcia, who also welcomed the appointment of GSIS chairman Daniel Lacson, said he managed the state-owned pension fund’s resources and assets in a prudent manner.

“Right from the start, my primary concern was sound management of our pension fund so that we could provide our members with the entire range of social security benefits, such as compulsory life insurance, optional life insurance, retirement, separation, disability due to work-related accidents, and death benefits,” Garcia said.

Because of these reforms, he said the GSIS’s actuarial life-or the period by which it can provide for the needs of its members and pensioners-has been substantially extended.

“In 2001, the Fund’s life was projected to last only until 2028. By December 2009, the Fund’s actuarial life was estimated to last until 2064,” he added.

Earlier stories quoted former Sen. Ernesto Herrera urging the new chairman of the GSIS to disclose to the public the true condition of the pension fund’s $565-million Global Investment Program (GIP).

“GSIS members have no idea whether the GIP has been making or losing money, and to what extent it has been generating gains or incurring losses,” said Herrera, secretary-general of the Trade Union Congress of the Philippines (TUCP).

“Over the last two years, the global financial markets have been highly turbulent. We reckon the GIP has been shaken by the turmoil,” added Herrera, former chairman of the Senate committee on labor, employment and human resources development.

Lacson should also find out and then reveal to the public the management fees being paid by GSIS to Credit Agricole Asset Management Ltd. and ING Investment Management for overseeing the GIP, Herrera said.

GSIS launched the GIP in April 2008.