DISPUTES over investment policy within the Government Service Insurance System (GSIS) have the potential to erode confidence in the pension fund for civil servants, management organizations said.
In a joint statement, the organizations said the cloud hanging over investments made by the GSIS “raises serious questions about accountability, transparency, and oversight in government-owned and -controlled corporations (GOCCs).
“The reported disputes between the GSIS president and general manager and members of the board of trustees over significant decisions and the scope of executive authority are a serious matter,” they said.
“The conflict challenges the core principles of fiduciary duty, transparency, and oversight of the board, which are crucial for all GOCCs managing public funds,” they added.
The signatories to the statement were the Institute of Corporate Directors, the Financial Executives Institute of the Philippines, the Institute for Solidarity in Asia, and the Justice Reform Initiative.
They said the GSIS dispute presents an opportunity for the Philippines to reinforce governance standards across all GOCCs.
To achieve this, they said the principle of board authority must be upheld in setting policy and approving high-risk investments and clear, enforceable dual accountability of GOCC executives.
They supported stricter protocols within GOCCs to prevent the undermining board oversight and promote transparency in all financial and investment dealings.
They also urged the GSIS leadership and its regulators to organize a review to clarify lines of authority and accountability over major decisions.
“We stand for strong governance. The sound, ethical, and transparent management of public funds by all GOCCs is non-negotiable for securing the nation’s future and ensuring the trust of the Filipino people,” they added. — Justine Irish D. Tabile