3 GSIS execs dismissed

The Ombudsman has ordered the dismissal of three ranking officials of the Government Service Insurance System (GSIS) for approving a $10-million loan based on spurious collateral.

Ombudsman Simeon Marcelo issued the order yesterday against GSIS senior executive officers Alex Valencerina, Amalio Mallari and Fernando Campana.

Public Assistance Bureau director Marylyn Galvez said the three GSIS executives granted the loan to Ecobel Land Inc., even though the land title used as collateral in Lipa City in Batangas turned out to be illegitimate.

The three GSIS executives also face forfeiture of their retirement benefits, on top of the administrative charges and perpetual disqualification from being employed in the government.

The Ombudsman also called for the continuing investigation against Leticia Bernardo, manager of the GSIS’s surety department. Bernardo was spared the sanctions since the summons on her was not properly served.

Galvez said the three GSIS executives were held liable for releasing a $10-million "guarantee payment bond" to Ecobel Land for the purported construction of a 26-story commercial-residential building along Taft Avenue in Manila.

The building was supposed to stand on a 510-square meter lot and contain 139 units.

Galvez said she had wondered if the construction of the building had proceeded on the specified address since two days after the GSIS executives approved the loan on Feb. 9, 1999, the collateral was found to be fictitious.

"It was discovered that one property offered as major collateral situated in Lipa City under the name of Vicente Yupangco was spurious. Thus, GSIS canceled the bond," Galvez said in a statement.

After its cancellation, Campana, who holds office at the GSIS branch in London, England, "still received from Ecobel Land Inc., the premium payment."

And as expected, a notice of loan default was issued by the foreign creditor Bear Stearns Int’l to Ecobel in March 2000. — Delon Porcalla