NEW DELHI, India Sen. Risa Hontiveros expressed concern over the investment decisions made by the Government Service Insurance System (GSIS), including its purchase of preferred shares and its stake in an online gambling platform.
Following the suspension of GSIS General Manager Wick Veloso over the P1.45-billion investment in Alternergy Holdings Corp., Hontiveros also raised questions about the agencys decision to place invest in firms that cater to egaming.
Pinaka-nakakagulat sa lahat, nag-invest ang GSIS ng lagpas P1 billion sa online sugal!" Hontiveros said in Filipino in a privilege speech on Tuesday, August 8, noting that the GSIS bought shares when they were at a peak of P65.30. "Those shares have since hit a low of P13.68. Lugi na!
In the first place, what was GSIS thinking, investing funds in online gambling? she added.
Hontiveros also alleged that Veloso and other executives tagged in the Alternergy controversy violated GSIS policies by entering what she says is a risky investment.
Alternergy's market capitalization was far below the P15 billion minimum reportedly required under GSIS policy for investible companies. The shares were not even listed with the Philippine Stock Exchange on the dates of the execution of the agreement and the payment of the subscription, Hontiveros said.
Alternergy was also heavily in debt and had a low interest coverage ratio.
Citing 2023 reports from the Commission on Audit, Hontiveros said the GSIS invested a total of P2.38 billion in three companies.
Sadly, the GSIS has already suffered a P251.37 million valuation loss on these equity bets. P251.37 million valuation loss! This is no longer risk-taking, she said.
Hontiveros said this should be the cause for the Senate to revisit the GSIS Act so that the measure could be revised and updated if needed.
Palace: No rush to ban online gambling
Hontiveros' concerns come amid growing public debate over online gambling in the Philippines.
While President Ferdinand Marcos Jr. previously moved to shut down Philippine offshore gaming operators, he made no mention of a similar crackdown on domestic online gambling in his most recent State of the Nation Address.
In response to criticism, Palace Press Officer Claire Castro said the government was still weighing the pros and cons of banning online gambling.
Castro added that the Palace was considering whether most gambling-related harm stems from illegal apps, rather than licensed operators.
Finance Secretary Ralph Recto also said that regulating online gambling was better, as an outright ban might only drive more people towards illegal gambling.
Both online gambling and the heavy advertisement around it have drawn widespread concern from politicians and civic leaders, with many citing the danger of driving players to financial ruin.
