Bu-lat-lat (boo-lat-lat) verb: to search, probe, investigate, inquire; to unearth facts

Volume 3,  Number 29              August 24 - 30, 2003            Quezon City, Philippines


 





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Congress Pressed to Probe GSIS Anomalies

Unionized government employees in Negros are asking Congress to investigate anew the Government Service Insurance Service (GSIS) for possible graft practices following complaints by many of its members over delayed loan applications.

By Karl G. Ombion
Bulatlat.com / Cobra-Ans

BACOLOD CITY - The demand for investigation came from the Confederation for Unity, Recognition and Advancement of Government Employees (Courage)-Negros in the wake of current probes by Congress into corruption in the Armed Forces of the Philippines (AFP) and lifestyle checks in the customs bureau, Bureau of Internal Revenue (BIR) and other agencies.

Courage Negros spokesperson, Danilo Alcoriza, late last week raised concerns about possible irregularities at GSIS citing in particular a report submitted by Ferdinand Gaite, Courage national president, to the House committee on government enterprises and privatization.

In his report, Gaite said thousands of government employees have been prevented from availing of salary loans and other benefits from GSIS since May this year over the flimsy reason that records were undergoing computerization, as claimed by the agency’s general manager, Winston Garcia.

Alcoriza said the real reason behind GSIS inaction on pending loan applications – number about 10,000 as of the latest count – is that the agency funds amassed from government employees’ money was diverted for failed investment ventures.

“There is simply no money in the GSIS as it is on the verge of bankruptcy due to its huge losses as a result of its failed investments,” Alcoriza said. “GSIS fund managers had invested billions of the agency’s fund in risky losing ventures.”

Out of 10,000 applications for salary loan GSIS can only release at most 30 treasury warrant checks a day, it was learned. Worse, loans are covered with cross-checks which entail that employees open bank accounts while withdrawals would take some time, Alcoriza said.

Employees have also discovered that interests on loans taken were higher at from 8% to 12% annually.

The grant of retired employees’ benefits is also a problem. Lump sum retirement payments can only be availed of by those who have left government service before 1977. The rest can avail of lump sum payment only for five years based on monthly pension releases.

Courage lambasted GSIS officials for not telling the truth when they say that applications for loans by government employees cannot be processed because records are still being updated. All GSIS records had been updated by 1998, the group said. 

 Against the employees’ interests, the GSIS has been given full powers to invest their money in just anything the board so desires without the consent of genuine representatives of the hundreds of thousands of employees, Courage said.  Bulatlat.com / Cobra-Ans

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