BY NOEL SALES BARCELONA
Contributed to Bulatlat
September 17, 2008
A group of government employees said that the funds of Government Service Insurance System (GSIS) and Social Security System (SSS) are in ‘grave danger.’
The Confederation for Unity, Recognition and Advancement of Government Employees (Courage) said that the money invested by the GSIS and SSS in the local stock markets will be affected by the falling world stock markets due the declaration of bankruptcy by the Lehman Brothers, one of the America’s top banking groups.
Courage National President Ferdinand Gaite said that they have warned the social security institutions about the danger of putting the members’ money in volatile investments the like of shares of stocks.
World financial analysts and stock brokers fear that the Lehman Brothers’ declaration is just one of the series of ‘bad news’ for the financial sector and the current US financial turmoil will worsen in the coming days.
“Like Manila Electric Co. shares, which dropped excessively—from the original price of P80.90 (US$1.71, based on the prevailing exchange rate) to P57 ($1.21) per share—same thing will happen to other investments made by the GSIS and SSS to the stock market,” explained Gaite.
Aside from the Meralco shares, GSIS also suffered losses in buying stocks with the former Equitable-PCI Bank, Bell Resources, Empire East, and even with San Miguel Corporation, he added.
The group said they will file formal charges against the GSIS management, particularly against GSIS President and General Manager Atty. Winston F. Garcia, for mismanagement of funds and violations of the Republic Act No. 8291 or the GSIS law. Bulatlat
Corruption of the top executives of GSIS during the era of Mr. Winston Garcia has made themself a real crocodile. They have eaten the flesh and blood of every member of GSIS faithfully paying the monthly premium.
I have said this things, because of my personal experiences with the system. They had made me a huge salary loan amounting to half a million which I never avail of during my government employment, as a result of this they hostage my benefits from my last employers due to non issuance of GSIS Clearance.
Until now, I’am following up the matter to the GSIS and still the struggle and pain continues…..