EDITORIAL - Using SSS funds

How can spending for infrastructure and social protection measures be considered an investment that will earn financial profits? A “fair” return on investment is what Malacañang is promising the 27 million members of the Social Security System to explain a plan to use P12.5 billion of the private sector’s pension fund for the government’s pump-priming infrastructure projects. The only individuals who might profit financially from an infrastructure project are the contractor and any crook who might receive a commission from the deal. If the bidding is rigged, the bigger will be the commission.

Executive Secretary Eduardo Ermita would only say that SSS Administrator Romulo Neri could explain the plan if ever fund members challenge it with a class suit. Neri has said that the SSS charter allows the use of a portion of the pension fund for products with sovereign guarantees.

The designation of the SSS chief, recycled from the Commission on Higher Education, as overseer of the multibillion-peso economic stimulus package already raised eyebrows. Why not Ralph Recto, the socio-economic planning secretary who is also director-general of the National Economic and Development Authority? Palace officials could issue only vague explanations that came down to one argument: it was what President Arroyo wanted.

Now that SSS funds are being tapped for unusual purposes, Neri’s dual roles can start to make sense. And critics are leery. Several senators are urging SSS members to sue Neri for technical malversation. The Senate is planning to investigate the use of the funds, which critics suspect will be diverted to the campaign coffers of the administration for the 2010 elections.

The SSS might be able to provide a convincing explanation for the use of private sector money for public spending. But for this the SSS needs full transparency – a weak point of Neri, who will always be remembered for invoking executive privilege to protect evil in government.