Philippine Senator Risa Hontiveros recently questioned the Government Service Insurance System (GSIS) at a Senate hearing, challenging the decision to invest 1 billion pesos in the online gambling platform DigiPlus without fully assessing potential social harms. The GSIS president responded that the investment was based on financial indicators and legality, but admitted that the social costs were not specifically assessed, sparking a discussion on the ethics of government fund investments.
Background and Focus of the Inquiry
Philippine Senator Risa Hontiveros raised questions about the GSIS's investment decisions at a Senate subcommittee hearing. The focus was on the process of GSIS's investment of 1 billion pesos in the online gambling platform DigiPlus, particularly the assessment of potential social impacts of the investment.
Hontiveros questioned whether GSIS had adequately considered the social harms of online gambling, including addiction issues, family financial risks, and other derived social costs.
GSIS's Investment Rationale and Defense
GSIS President Jose Arnulfo "Wick" Veloso responded at the hearing that DigiPlus is a legally registered company listed on the Philippine Stock Exchange, meeting all statutory standards for institutional investment. The investment decision was primarily based on profitability, safety, and liquidity financial indicators.
Veloso stated that unless Congress or the law specifies otherwise, GSIS's current investment decision process is mainly based on financial considerations. He also expressed willingness to seek guidance from Congress but emphasized that the current stage is "acting according to existing laws."
Controversy Over Social Cost Assessment
Hontiveros expressed dissatisfaction with GSIS's response, pointing out that methodologies and research foundations for quantifying the social costs of online gambling already exist in the public health field. She emphasized that relevant studies and cases were already available before the investment, and GSIS had no reason to ignore these factors.
The senator believes that GSIS is fully capable of proactively introducing a social responsibility assessment mechanism, rather than waiting for congressional legislation to mandate it. She called for the government pension fund to play a more active leadership role in social responsibility in investment decisions.
Views and Suggestions from Other Senators
Senator Mark Villar added at the hearing that although social externalities are "difficult to quantify," the management of government funds should be more cautious. He suggested that GSIS gradually incorporate social impact factors into the investment decision process.
Villar emphasized that as an institution managing public funds, GSIS has a responsibility to consider the broad social impacts of investment decisions, not just financial returns.
Follow-up Impact and Institutional Response
Hontiveros finally warned that if GSIS continues to refuse proactive reform on the grounds of "waiting for congressional legislation," it could lead to public disappointment. She pointed out that the pension fund concerns the contributions of a wide range of civil servants and unions, and GSIS should be a model of responsible investment.
The GSIS president stated that the institution is willing to consider these suggestions, but also emphasized the need to operate within the legal framework. Both parties agreed to continue discussing this issue to seek a balanced solution between financial returns and social responsibility.
