Government Service Insurance System (GSIS) President and General Manager Arnulfo “Wick” Veloso defended the state-run insurer’s financial performance following an internal call rallying the recently returned chief to submit an immediate and irrevocable resignation.

This comes as Veloso reportedly ignored “clear and substantial” risks to the GSIS investments when he stepped into office, causing the firm to lose nearly ₱9 billion under his leadership.

“Poor investment decisions have led to GSIS huge losses of ₱8.8 billion. Despite our repeated inquiries and formal requests for your explanation, you have failed to provide a substantive response or engage in a discussion regarding these critical concerns,” six present and former GSIS executives told Veloso in a letter dated Oct. 14.

“Your actions and championed risky transactions have compelled us to act. We contend that these initiatives are not merely questionable, but they directly violate the fiduciary duties of the GSIS. Marked by a disturbing lack of transparency and offering no clear benefit to the institution, these ventures threaten the very stability and integrity of the fund we are sworn to protect,” they further said.

GSIS Board of Trustees (BOT) members include Legal Oversight Committee Chair Ma. Merceditas N. Gutierrez, Risk Oversight Committee Member, Emmanuel De Leon Samson, Audit Committee Member, Rita E. Riddle, BOT Member, Evelina G. Escudero, former Audit Committee Chair, Jocelyn De Guzman Cabreza, and former Risk Oversight Committee Chair Alan R. Luga.

“We are deeply concerned by a pattern of actions seemingly designed to bypass proper governance,” they said.

Efforts to sidestep proper oversight, they said, include splitting investment deals meant to avoid mandatory board scrutiny and the continued push for risky, non-compliant proposals before the board.

GSIS executives cited nine particular concerning transactions, including the one with Monde Nissin Corp. The insurer executed four transactions worth ₱4.8 billion in one week in March 2023, resulting in ₱1.4 billion in losses.

There were also losses tied to two other listed firms. GSIS placed ₱1.5 billion in Nickel Asia Corp. through back-to-back trades on April 12 and 13, 2023, and that position is now down ₱618.6 million. A separate ₱1.45 billion placement in Bloomberry Resorts Corp., split into two transactions in a single day, has likewise sunk, posting ₱901.9 million in losses.

Notably, the GSIS’ ₱1.2 billion placement in gaming firm DigiPlus Interactive Corp.—which prompted a two-month preventive suspension of Veloso—was carried out through two transactions in June 2025 and has already lost ₱749.5 million.

State auditors also flagged the Alternergy Holdings Corp. investment for violating GSIS rules, citing the company’s lack of a profitability track record, missing approvals, and failure to meet market standards—issues that likewise led to the preventive suspension of officials involved.

Several other proposals were also flagged for violating GSIS rules and exposing members’ funds to unnecessary risks. These include a ₱456 million placement in Figaro Culinary Group Inc., which breached market cap and exposure limits, and planned investments in private equity funds managed by Neuberger Berman and Nightdragon, which were deemed too risky and illiquid for a pension fund.

Likewise, proposed deals involving Udenna Land Inc., 8990 Housing Development Corp., and the Centrium property were criticized as speculative, fiscally unsound, or designed to bypass procurement and governance standards.

Veloso countered that the objections stem from differing views on investment strategy and governance, saying the current leadership follows a professional, evidence-based approach to managing funds.

Each placement, he said, is assessed for its ability to deliver the best returns for members, adding that the fund follows a disciplined, compliant, and prudent approach aligned with its mandate to grow and protect GSIS assets.

“This process effectively invalidates any insinuation of mismanagement or financial loss,” Veloso said in an Oct. 17 statement.

To back his position, Veloso pointed to the GSIS’ August financial results, noting that the fund’s life is projected to remain secure until 2058.

Net income hit ₱100 billion as of August, beating the period’s target by 51 percent and topping last year’s level. Total assets also expanded to ₱1.92 trillion.

“These results are the direct outcome of a stability-focused strategy and expert asset management—delivered under the very leadership that is now being questioned,” GSIS said.

As to how this case will move forward, Veloso said he respects and “defers to the legal process.”