At a press conference, Garcia’s lawyer Estrella Elamparo noted how the complaint only came after a failed move by GSIS employees to launch a massive and week-long rally to pressure Garcia to step down.
She added the charges filed by an organization of government employees were merely a rehash of misleading accusations against the GSIS chief. In their complaint, the Confederation for Unity, Recognition and Advancement of Government Employees (Courage) charged that no premium payment was made by Garcia prior to the release of his salary loan from GSIS.
Garcia’s loans from the agency include a P2 million salary loan which he made to purchase a Swedish-made Volvo car, and an P11-million housing loan to acquire a house in an exclusive village. He maintains there was nothing irregular in his loans and its processing, saying he would be able to repay these even if he resigns from his post.
"This complaint is without any basis in law and in fact," Elamparo told reporters. "We welcome this investigation of the Ombudsman. Our position is any investigation in any legal forum is an opportunity for Mr. Garcia to prove which side has the evidence and prove the truth," she said.
Asked why Garcia was not present in the press conference, Elamparo said he decided to focus on his work at GSIS and had appointed her as spokesperson. "It’s not necessary for him to speak on the matter," Elamparo said.
GSIS executive vice president Enrequeta Disuanco confirmed Garcia did not have premium contributions before his loan was released. But she pointed out it was not necessary for the GSIS to consider the premium contributions of a member who has been in the service for a long time.
In Garcia’s case, Disuanco said he has been in the service for 12 years and is more than qualified to avail of the salary loan in the maximum amount of eight months.
"It’s not necessary that we consider the premium contributions. With respect to the amortization said to be deficient or not in the right amount. His loan amortization should start in August this year," she explained. She said the GSIS has already deducted Garcia’s loan amortization for the previous months for the loan, which should have been already paid. Garcia actually has an overpayment of P73,000, she said.
"If a member is in the service for so many number of months then he’s qualified to avail of a loan and we’ll approve the loan," Disuanco said. Asked to comment on the alleged favored stockbroker of the GSIS, executive vice president Omelita Tiangco said First Resources Corp., owned by Vivien Yuchengco, has been its stockbroker since 1988 even before Garcia was appointed to the GSIS.
This action was approved by the GSIS board of trustees, she said. Tiangco said the GSIS only has First Resources as its stockbroker, noting that if the system will distribute the businesses to many stock brokers, this will unnecessarily increase stock prices and will be disadvantageous to the GSIS as buyer and investor.
"Actually, our practice in stock trading has reached P1.1 billion and therefore, it’s not true it’ll be more profitable if it is invested in time deposit which gives us only around four percent at most," she said.
Garcia’s counsel said Yuchengco’s friendship with Garcia and First Gentleman Jose Miguel Arroyo has nothing to do with the GSIS decision to use only one stockbroker. "If they want to use Mr. Garcia as a springboard to attack somebody else, that’s their prerogative. But it’s not for him (Garcia) to confirm or deny something that he doesn’t know of," Elamparo said.