InsiderPH is publishing in full the statement of Government Service and Insurance System (GSIS) president and general manager Jose Arnulfo "Wick" Veloso, which he issued on the evening of July 24, 2025.
First, my preventive suspension is based solely on an anonymous and unverified complaint purportedly filed against me. My preventive suspension was issued without the Ombudsman considering my counter-affidavit. In a joint order dated 20 June 2025, which I received on 30 June 2025, the Ombudsman directed me to file my counter-affidavit and even granted an extension to allow me to file the same on 21 July 2025, so that I may refute the allegations made in the anonymous and unverified complaint.
However, without waiting for my counter-affidavit, which was timely filed, the Ombudsman decided to rely solely on the bare allegations contained in the anonymous and unverified complaint in preventively suspending me and other hardworking officers of GSIS.
Second, based on the records of GSIS, and narrated under oath in my counter-affidavit, the investment of GSIS in Alternergy underwent rigorous evaluation and endorsement by the GSIS investment team, whose technical expertise in financial instruments and risk assessment confirmed that the Alternergy investment fell squarely within established parameters. Certainly, the professional judgment of these experts holds significantly greater credibility than the unverified assertions of an anonymous source.
Third, and more importantly, the Alternergy investment complied with all applicable investment rules and regulations of GSIS.
Under GSIS policy, board approval is required only for investments exceeding P1.5 billion. The Alternergy investment—P1.45 billion for 100 million preferred shares—was well within the authority delegated to the president and general manager. No board approval was legally required.
Republic Act No. 8291, on the other hand, allows GSIS to invest in preferred or common shares of listed corporations. It does not require that the specific shares be listed at the time of purchase—only that the issuing company be listed and regulated. Alternergy has been listed on the Philippine Stock Exchange since March 2023 and remains under full regulatory oversight.
As to the Market Capitalization and Free-Float Thresholds, these are intended for investments in publicly traded common shares, where liquidity risk must be managed. The Alternergy investment was not for common shares. GSIS subscribed to non-traded preferred shares, which are fixed-income instruments designed for yield, not for trading. Applying market capitalization and public float criteria here reflects a failure to understand both the nature of the instrument and the purpose of the policy.
Fourth, in 2024, barely a year after the investment was made, GSIS earned P117.9 million in cash dividends from Alternergy. This is a concrete return that strengthens the GSIS fund and directly benefits our members and pensioners — clearly disproving any suggestion of financial loss or mismanagement.
Finally, to allay any misconception as to the financial status and sustainability of the GSIS fund, I am proud to share that since I assumed office as president and general manager, the fund has grown from approximately P1.54 trillion by end of 2021 to around P1.88 trillion as of June 2025 — an increase of over P300 billion, or roughly 20 percent over three years.
As of June 2025, approximately 72 percent of the GSIS investment portfolio is allocated to relatively risk-free assets such as government securities, loans to members, and real estate, reflecting a cautious and stability-focused strategy, 19 percent in equities, 5 percent in private equity funds invested in infrastructure, and 4 percent in cash and near-cash items.
Preliminary financial figures as of 30 June 2025, show that the total income stood at P172.7 billion, reflecting a year-on-year growth of P21.67 billion or 14.35 percent, while net income surged to P77 billion, marking a significant P18 billion (or 31 percent) rise from June 2024. With these figures, the GSIS has extended its fund life up to 2058 or for 33 more years, enabling us to fulfill our responsibility of delivering benefits to our members and retirees on time.
With decades of experience in finance and investments, I have always been mindful of the boundaries of my authority, and have consistently ensured that all investment decisions remain well within those limits. As president and general manager of GSIS, my mandate has always been to protect and grow the GSIS fund through prudent, opportunity-driven strategies, for the benefit of government workers and pensioners.
I have responded to the proceedings before the Office of the Ombudsman, and I remain confident that a full and fair review of the facts will affirm the integrity of the Alternergy investment, that it was conducted within legal bounds, policy limits, and fiduciary standards — and was made solely with the best interests of GSIS members in mind.
