On the refusal of GSIS to disclose the status of its foreign investments

    Government Service Insurance System spokesperson Atty. Estrella Elamparo’s refusal to reveal the current status ("mark-to-market valuation") of the $600 million foreign investments of the GSIS—in the face of a growing clamor from its members for disclosure—implies that these are not doing well at the moment. This is a cause for concern to all GSIS members, as the GSIS Global Investment Program (GIP) comprises almost 10% of the total assets of the state pension fund.

    Her assurance that the GSIS “has taken every move” to ensure the success of the GIP, and specifically that it only deals with those fund managers with at least $100 billion in managed assets is meaningless, considering that the current meltdown in Wall Street shows that such assets can evaporate overnight.

    Her refusal to make a full public disclosure is infuriating and demonstrates once more the arrogance and lack of transparency of the GSIS management under Winston Garcia.

    Finally, while Elamparo has seen fit to mention that $300 million of the GSIS’s funds are being managed by ING Investment Management and another $300 million by Credit Agricole Asset Management, she conveniently omits the fact that Citibank NA serves as the “global custodian” of the GIP, as announced by Garcia last November. What are the risks posed to the pensions of members with the involvement of Citibank?

    They owe their members a full explanation. Our pensions are on the line.

Antonio Tinio

ACT chairperson