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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