Philippine Senator Risa Hontiveros shockingly revealed on August 5th in Congress that the Government Service Insurance System (GSIS) had used public officials' retirement funds, amounting to 1 billion pesos, to invest in the online gambling platform DigiPlus, which now faces a nearly 90% loss in book value, causing public uproar.
DigiPlus is controlled by current casino tycoon and Congressman Albee Benitez. GSIS is suspected of buying shares at a high of 65.3 pesos each, but as of now, the price has fallen to 13.68 pesos, resulting in heavy losses. Hontiveros exclaimed, "Public servants can't even enter casinos, yet GSIS is investing their retirement funds in a gambling company?"
This high-risk investment occurred under the tenure of the suspended former GSIS President Jose Arnulfo “Wick” Veloso. Hontiveros questioned whether his decisions violated GSIS internal standards and severely damaged the trust of 2.7 million members.
More worryingly, GSIS is suspected of other high-risk investment behaviors, including spending 1.45 billion pesos on high-debt, unlisted Alternergy preferred shares without board approval, and investing in Del Monte Pacific, which has a debt of 2.3 billion USD, resulting in a loss of over 19 million pesos.
Hontiveros has called for a thorough investigation by the Senate, demanding legislation to strengthen oversight of GSIS fund operations to prevent national pension funds from becoming gambling capital. She bluntly stated, "Don't wait until the accounts are empty to regret!"
