Over anomalous GSIS eCard system:
Garcia Faces Storm as State Employees Call
for His Ouster Anew
Government employees
will call anew for the ouster of Winston Garcia, GSIS chief and a close
political ally of the President. Garcia’s multimillion-peso eCard project
was found to be anomalous no less by the Commission on Audit.
BY ALEXANDER MARTIN
REMOLLINO
Bulatlat
The Government Service Insurance System (GSIS)
will once again become a battleground as state employees are gearing to
renew their call for the ouster of the agency’s president and general
manager, Winston Garcia.
This time however, Ferdinand Gaite, chair
of the Confederation for the Unity, Recognition and Advancement of
Government Employees (Courage) said, the campaign for Garcia’s resignation
will also be brought to Malacañang, the presidential office of Gloria
Macapagal-Arroyo for her failure to curb corruption particularly at the
GSIS.
On March 16, Gaite told Bulatlat,
government unions will mount a nationally-coordinated protest action
against Winston and President Macapagal-Arroyo. Garcia came under fire
last year for his refusal to leave GSIS despite charges of corruption
including anomalies that appeared to bleed the state insurance firm dry of
funds.
“This time the fight
is no longer just against Garcia,” Gaite said. “We intend to bring the
fight to Malacañang, because, the fight is against a president who claims
to wage an anti-corruption campaign but has not even lifted a finger
against Winston Garcia, a corrupt official.”
The renewed demand for Garcia’s ouster
stemmed from a report no less by the state Commission on Audit (CoA) that
the establishment of the GSIS eCard violated law, rules and regulations.
In particular, the eCard project was
awarded to the Union Bank of the Philippines (UBP) which is owned by the
Aboitiz Group of Companies. Presidential Social Secretary Bettina
Araneta-Aboitiz is married to Sabin Aboitiz, the Aboitiz Group’s chief
executive officer.
The Courage chair said that the new CoA
findings merit the filing of charges against Garcia before the Ombudsman.
Charges against the GSIS chief are being prepared by Courage and the
Kapisanan ng Manggagawa ng GSIS (KMG or GSIS Employees Association) led by
its president, Albert Velasco
The CoA had reported
Jan. 21 that “the processes employed in the prosecution of the GSIS eCard
project and their repercussions” violate law, rules and regulations. The
CoA team that investigated the implementation of the eCard project was
composed of lawyers Joel Estolatan and Rhoda Pileña, team leaders; lawyer
Leonor Boado, team supervisor; and lawyer Alexander Juliano and Ma.
Rosalinda Salvarod, members.
Trouble with eCard
“Supposedly, the eCard system was created
to ease GSIS members’ transactions of their applications for loans and
benefits,” said Velasco, a lawyer. “Instead of filling up papers, the
members simply have to go to ATMs, punch in some codes, and they could see
how much they could avail of, and in a few minutes they could get the
amount they need.”
The problem, Velasco said, is that the
eCard has instead made life more difficult for GSIS members.
“The first problem of eCard holders is
finding ATMs,” said Velasco. “So they are often forced to resort to the
old way where they have to go through the processing of papers. The
purpose of the eCard system is thus defeated.”
The depository bank for the eCard system,
which involves P1 billion ($17.86 million based on a $1:P55.99 exchange
rate) in GSIS funds, is the UnionBank of the Philippines (UBP) which has
only 111 branches and 94 ATMs nationwide according to its own company
website (http://www.unionbank.com.ph/).
In contrast, the LandBank of the
Philippines (LBP), the former GSIS depository bank, has 503 ATMs
nationwide based on the CoA report, and has interconnections with the
ExpressLink and Megalink member banks. “Eighty percent (80%) of the
national government agencies’ accounts are maintained with the LBP and it
has proven its capability to serve their electronic-based banking needs,”
the CoA report said.
The designation of the UBP as GSIS
depository bank is disadvantageous not only to the 1.6million GSIS
members, but to the government itself, the CoA report stated. The
government stands to lose an estimated income of P1.27 billion in seven
years from the transfer of GSIS funds from the LBP to the UBP, the report
also said.
Legality
And this is where the issue of legality
comes in, Velasco said.
The CoA report shows that the GSIS, in
January 2003, had sent letters to the LBP, the Development Bank of the
Philippines (DBP), and the Philippine National Bank (PNB) inviting hem to
submit proposals to provide the GSIS with an eCard service. The GSIS would
then evaluate which proposal would best serve its requirements and “with
the most favorable cost-benefit comparison.”
The three banks submitted their proposals,
but the GSIS decided in February that same year to defer the eCard
project. But in January 2004, the GSIS revived discussion on the eCard,
inviting the Bank of the Philippine Islands (BPI) to participate in
“exploring options” and increasing GSIS depository banks to include
private banks. The BPI and the LBP discussed their respective services in
a series of meetings with the GSIS, as would other banks like the
Equitable-PCI Bank (EPCIB) and Metrobank.
It was only on May 17 last year that UBP
submitted its proposal to the GSIS. Yet, three days later the GSIS Board
of Trustees awarded the eCard project to the Aboitiz-owned bank.
The CoA report noted that the project did
not go through the regular bidding process as required by law, and that
the GSIS Board of Trustees “gravely abused its discretion” in awarding the
project to the UBP.
“The bidding process itself was full of
anomalies because it was railroaded to award it to the UBP,” Gaite said.
“We had said even last year that the GSIS
fund transfer was anomalous,” Velasco said. “Now that it is the CoA itself
that is saying so, I think our arguments should carry more weight.”
Political payback?
“Why was the project awarded to the UBP,
in such an anomalous manner, when the LBP is clearly more capable of
serving its requirements?” Velasco continued. “We can see no reason except
that it is part of President Gloria Macapagal-Arroyo’s payback to those
who supported her during the 2004 election.”
As early as October 2003, Garcia had
expressed support for Macapagal-Arroyo’s bid for a fresh presidential
term. “We trust in the leadership and moral ascendancy of the president
and believe that she deserves six more years to finish the programs that
she has started,” Garcia said in a press interview on Oct. 18, 2003.
Macapagal-Arroyo assumed the presidency
through a largely anti-corruption people-power uprising in January 2001.
Bulatlat
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