Government Service Insurance System (GSIS) President Jose Arnulfo “Wick” Veloso
THE Office of the Ombudsman has placed Government Service Insurance System (GSIS) president Jose Arnulfo “Wick” Veloso and six other officials under preventive suspension without pay for six months.
This action stems from an ongoing investigation into a P1.4 billion investment deal with Alternergy Holdings Corporation.
The Ombudsman’s order, dated July 11, cites sufficient evidence suggesting the officials’ guilt on charges of possible grave misconduct, gross neglect of duty, and violation of reasonable office rules and regulations. The investigation centers on alleged violations of GSIS Investment Policy Guidelines, specifically regarding the purchase of unlisted Perpetual Preferred Shares and non-compliance with minimum market capitalization requirements.
The Ombudsman’s findings indicate that the P1.4 billion investment in Alternergy preferred shares lacked the necessary endorsements from the Assets and Liabilities Committee (ALCO) and the Risk Oversight Committee (ROC), crucial steps before Board of Trustees (BOT) approval.
The suspension is intended to safeguard evidence related to the case and prevent any further potential misconduct while the investigation proceeds.
The Ombudsman’s order emphasizes the need to protect the integrity of the investigation and ensure the preservation of relevant documents and evidence. The officials’ continued presence in office could potentially compromise the ongoing investigation.
GSIS President Veloso, in a statement expressed confidence in the integrity of GSIS’s investment decisions and promised further updates upon conclusion of the process.
The six-month suspension without pay represents a significant development in the case and underscores the seriousness of the allegations against the GSIS officials. The outcome of the Ombudsman’s investigation will have significant implications for the GSIS and the management of its investment portfolio.
