THE GOVERNMENT should investigate a proposed investment plan of the Government Service Insurance System (GSIS), according to a former congressman who raised concerns on Wednesday that government workers’ pension fund will be put at risk.
“We cannot allow risky ventures that jeopardize the financial security of government employees,” former party-list congressman, Ferdinand R. Gaite, said in a statement.
Mr. Gaite issued the statement as Jose Arnulfo A. Veloso, president and general manager of the GSIS, floated plans to invest government pension money into an investment fund.
GSIS funds are proposed to be injected into the Neuberger Berman Credit Opportunities Fund II (NBCOF), a firm previously owned by Lehman Brothers, a bankrupt American financial services provider.
The GSIS did not immediately respond to an email seeking comment on the matter.
Lehman Brothers filed for bankruptcy in 2008 amid the subprime mortgage crisis in the United States, among the worst economic downturn experienced by the country since the Great Depression.
“The revelations surrounding the proposed NBCOF II investment underscore the importance of thorough scrutiny and adherence to legal and ethical standards in managing the GSIS funds,” Mr. Gaite said.
The GSIS Board of Directors should fulfill its fiduciary duty to safeguard the fund from unwarranted risks, he added. “Any investment decision must prioritize the welfare and financial stability of the government employees who rely on these funds for their future,” said Mr. Gaite. — Kenneth Christiane L. Basilio
