Senator Risa Hontiveros on Tuesday sounded the alarm over the Government Service Insurance System’s (GSIS) recent investment decisions, including more than P1 billion poured into an online gambling company and a controversial stake in Alternergy Holdings Corp.
In a privilege speech, Hontiveros questioned the wisdom behind investing pension funds in what she described as high-risk ventures. She zeroed in on GSIS’s acquisition of gambling-related shares that were bought at a high of P65.30 but have since plummeted to just P13.68.
“Pinaka-nakakagulat sa lahat, nag-invest ang GSIS ng lagpas P1 billion sa online sugal!” she said, emphasizing the magnitude of the losses. “Lugi na!”
Hontiveros also called out suspended GSIS General Manager Wick Veloso and other officials over the P1.45-billion investment in Alternergy, alleging that the deal violated internal policies. According to her, Alternergy did not meet the minimum market capitalization threshold required under GSIS rules and was not yet listed on the Philippine Stock Exchange at the time the deal was made.
“Alternergy was already in significant debt and had a low interest coverage ratio,” she added.
Citing data from the Commission on Audit, Hontiveros said the state-run pension fund has already incurred a valuation loss of P251.37 million from its equity investments in three companies. “This is no longer risk-taking,” she said. “This is recklessness.”
The senator urged her colleagues to revisit and potentially amend the GSIS Act to strengthen safeguards and ensure better management of pensioners’ funds.
Her warning comes amid rising concerns about online gambling in the country. While President Ferdinand Marcos Jr. has moved to crack down on offshore gaming operators, he did not mention a ban on local online gambling platforms in his recent State of the Nation Address.
Malacañang, through Press Officer Claire Castro, said the administration is still reviewing the implications of banning online gambling. Castro suggested that the bigger problem may lie with unlicensed platforms rather than regulated ones.
Finance Secretary Ralph Recto also weighed in, arguing that tighter regulation would be more effective than a blanket ban, which could push users toward underground operations.
Despite the differing views on enforcement, calls for greater oversight continue to grow, as concerns mount over the financial and social risks tied to online gambling.
