Union of Government employees raise issue of discontinuance of housing loans with new GSIS leadership

GSIS official admits agency incompetency

For his part, Vergara was very forthcoming about the weaknesses and failure of the GSIS to provide for the needs of its members. “We’re not a house lending institution. We are a pension fund. We admit that we do not have the staff, the infrastructure or the competency to implement an efficient housing loan program,” he said.

Courage president Ferdinand Gaite leads the government employee’s dialogue with GSIS General Manager Robert Vergara. In an interview with the media, Vergara said that he recognizes Courage’s consistent watchfulness regarding GSIS issues, hence his willingness to dialogue with its leaders and members. (Photo by Ina Alleco R. Silverio / bulatlat.com)

Vergara said that in lieu of a housing loan program, the GSIS will begin to adopt wholesale approaches to asset sales and in working with key shelter agencies (KSAs). He said that he and the rest of the GSIS Board will meet with officials of the Home Development Mutual Fund — popularly known as the Pag-Ibig fund – and discuss how they can use its lending structure for the housing needs of GSIS members.

“We want to synchronize our efforts in the implementation of the government’s housing loan program through closer partnership with the KSAs the core functions of which focus on housing. We will be able to avoid duplication with their functions.”

He went on to say that applications and existing housing loans before April 28 would be processed and serviced and that policies and procedural guidelines for GSIS housing programs would remain in effect for the said loans. The disposition of acquired assets would also continue, but on a cash basis only.

“The suspension of the GSIS housing loan programs will enable the agency to focus on other types of loans that it can offer to its members and pensioners,” he said.

Vergara said that the GSIS is in a “healthy financial position” and the “withdrawal from direct home lending will not adversely affect this standing.”
Officers of the Consolidated Union of Employees (CUE) of the National Housing Authority (NHA) reacted strongly against Vergara’s declaration that the GSIS supports the establishment of a department of housing as the proposed agency will supposedly help make the delivery of housing services more efficient.

The CUE officials said the Aquino government’s plans to fully privatize the KSAs will spell death for the hopes of small income earners among government employees and private sector workers to own their houses.
“GM Vergara, we hope that you will seriously reconsider your support for the proposed department of housing. It should continue its housing loan program because this is something government employees need. The GSIS can improve its services for its employees and increase the benefits it can offer them by putting an end to the anomalous investments and exorbitant paychecks and perks being given to its top officials,” they said.

Go after Winston Garcia

In the meantime, Courage secretary-general Santi Dasmarinas said that the new leadership of the GSIS is very late in initiating efforts to investigate the anomalies and abuses committed by the previous GSIS board headed by Winston Garcia. He said that the last nine years when the GSIS was under Garcia, the agency became a “haven of corruption” and member-beneficiaries spent may sleepless nights worrying about where their contributions were going.

“We spent hundreds of sleepless nights fearing that we would never enjoy our GSIS benefits because of the continued reports of how Garcia was squandering the funds on paintings, exorbitant salaries of the board members, and the relentlessly defective GSIS computerization system,” he said.

Various members of the delegation said that they find it most difficult to accept that despite the much ballyhooed-computerization program, the GSIS is still found repeatedly and consistently guilty of negligent record keeping. Some said that they were shocked when they received letters stating that they had outstanding loans with the GSIS when they had already paid them off in full. Others said that the records of their contributions were not updated when they went to check with the nearest GSIS office.

Vergara issued the same explanation previously issued by other GSIS officials that the problem was because of faulty software supplied by international firm IBM for their computerization program. In 2009, the GSIS filed a case against IBM before the Pasay City regional trial court, and the company has already issued its denial of the charge.

In closing, Gaite said that the challenge remains for Vergara and the GSIS to prove their sincerity in implementing substantial and pro-employee changes in the operations and policies of the fund agency.

“If the GSIS is sincere in its’ intent to recover its’ liabilities and protect the worker’s fund, it should investigate the midnight deals and dubious investments committed by the previous administration and to hold them criminally-liable. We cannot accept that Winston Garcia and the other thieves in the GSIS board of directors under him will be able to get away with their massive theft unpunished. Government employees suffered much because the mismanagement of the pension fund. We will also continue to monitor the GSIS and its operations and demand changes to improve its delivery of services,” he said.