Ex-GSIS head raps Fortun’s charges

A former head of the Government Service Insurance System (GSIS) denounced the attempts by the Estrada camp to divert public attention from the plunder of the pension fund by blaming those who had previously managed the institution for the mess.

Cesar Sarino, former interior secretary and GSIS president, said the latest swipe by lawyer Raymund Fortun on GSIS investments since 1993 was "a cheap shot."

In a statement, Sarino said that under his watch, the GSIS experienced "a financial and organizational renaissance – a watershed which the institution can now use as a standard in evaluating future performance, particularly in terms of responding to the needs of its 1.5 million members."

He pointed out that from 1992-1997, the GSIS not only expanded but also increased members’ benefits annually.

"The expansion and increase in benefits were done while chalking up milestone achievements in its finances. From 1992-1997, gross revenues increased from P14.3 billion to P31.1 billion," Sarino said.

He admitted that GSIS indeed invested some funds in Belle Resources in 1993.

"But we bought the shares at an average price of P3.84 per share and unloaded this shortly thereafter at an average of P4.54 per share, resulting in actual net gains of P145.8 million. There is a big difference between the trading gains made in 1993 and the losses incurred in the transaction last year," he said.

Sarino urged the current GSIS administration to issue a report on the financial state of the pension fund for the year 2000, "when all the frivolous and anomalous investments were made."

"Let the record and the facts speak for themselves," he said.