The move stems from an anonymous complaint, which the Ombudsman found credible enough to warrant a formal investigation.
Sources say the looming suspensions may come as early as next week, even as the officials are still preparing their replies to the allegations.
Named in the complaint are senior GSIS officials including executive vice president Michael Praxedes and several vice presidents involved in investment approvals.
At the center of the issue is GSIS’s 2023 memorandum of agreement with Alternergy to acquire unlisted perpetual preferred shares.
Critics argue the deal breached the fund’s own investment rules, as Alternergy’s market capitalization was a fraction of the required P15 billion, and the transaction exceeded the cap on allowable exposure to a single stock.
But insiders are questioning the timing and motive behind the pending action.
This wouldn’t be the first time Veloso has been targeted since assuming leadership of GSIS. His high-profile entry into the board of Metro Pacific Investments Corp. and his investment strategies have made waves not only in financial circles but also within entrenched bureaucracies.
The question now is whether the Alternergy controversy is a legitimate accountability push or just the latest attempt to undermine Veloso’s market-driven reform agenda.
To be sure, the fund’s returns have yet to fully justify some of its investments. The Commission on Audit recently flagged several GSIS stock picks, including the Alternergy buy, as underperforming. A pending House resolution also calls out the fund’s “usurious” lending terms for members.
Still, some in government see the campaign against Veloso as part of a larger turf war that pits him against other parties who want the top post in the fund.
If Veloso is benched, it may be a win for internal critics. But it could be a setback for the modernization of one of the country’s biggest institutional investors.
Senior Reporter
