Jauhn Etienne Villaruel

Office of the Ombudsman main building. Mark Demayo, ABS-CBN News

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Office of the Ombudsman

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<p>MANILA (<strong>UPDATED</strong>) — The Office of the Ombudsman has placed GSIS President Jose Arnulfo “Wick” Veloso under preventive suspension over a P1.4 billion transaction with Alternergy Holdings Corp.</p><div><a class="fr-green" href="https://www.abs-cbn.com/business/06/29/22/marcos-gets-banking-veteran-wick-veloso-to-head-gsis">Marcos gets banking veteran Wick Veloso to head GSIS</a></div><p>Aside from Veloso, GSIS officials Michael Praxedes, Jason Teng, Aaron Samuel Chan, Mary Abigail Cruz-Francisco, Jaime Leon Warren, and Alfredo Pablo were also preventively suspended over the deal.</p><p>According to the Ombudsman, the deal &quot;breached&quot; the 2022 GSIS Investment Policy Guidelines.</p><p>The anti-graft body noted that in November, 2023, the GSIS subscribed to 100 million preferred shares of Alternergy at P14.50 per share without endorsement from crucial committees and approval from the Board of Trustees.</p><p>The Ombudsman added that the shares were not listed with the  Philippine Stock Exchange during the payment of the subscription. </p><p>It said the deal also failed to comply with the minimum market capitalization and exceeded the free float market capitalization cap.</p><p>The Ombudsman said there was a &quot;strong evidence showing their guilt&quot; on the charges against the officials for grave misconduct, gross neglect of duty, and violation of reasonable office rules and regulations may warrant their removal from the service. </p><p>&quot;Their continued stay in office may prejudice the investigation of the case filed,&quot; the order said. </p><p>In a statement, Veloso acknowledged the Ombudsman&#x27;s inquiry into the transaction, and assured that they are &quot;cooperating fully with the investigation.&quot;</p><p>&quot;We welcome this opportunity to affirm the integrity of GSIS’s investment decisions and will provide further updates once the process concludes,&quot; Veloso added. &quot;As the investigation is ongoing, we will refrain from additional comments at this time.&quot;</p><p>The GSIS said its board designated Juliet Bautista, Executive Vice President for Support Services, as officer-in-charge to temporarily assume the Veloso&#x27;s responsibilities. </p><p>&quot;A certified public accountant with more than 20 years of experience in auditing, accounting, and financial systems, Bautista previously led GSIS’s Internal Audit Services Office, where she was instrumental in achieving international service quality (ISO 9001) and data protection (ISO 27001) certifications. Bautista holds a Master’s in Business Administration from the Ateneo de Manila University and a degree in Accountancy from the University of Santo Tomas,&quot; the GSIS said in a press release.</p><p>&quot;The GSIS Board underscores that safeguarding the institution’s integrity and protecting members’ funds remain its highest priorities. Investments in governance reforms and strong internal controls are ongoing to further reinforce system resilience and transparency,&quot; it added. </p><div><br/></div><div><strong>RELATED VIDEO:</strong></div><script data-wid="auto" type="text/javascript" src="https://content.viralize.tv/display/?zid=AAFz8gWM8iRADsJr&amp;cid=ABcsBzfZB5hU_59M"></script>

<p>According to the Ombudsman, the deal "breached" the 2022 GSIS Investment Policy Guidelines.</p>

According to the Ombudsman, the deal "breached" the 2022 GSIS Investment Policy Guidelines.

Ombudsman suspends GSIS president Veloso over P1.4-B deal

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Ombudsman suspends GSIS president Veloso over P1.4-B deal

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Published Jul 22, 2025 02:41 PM PHT

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Updated Jul 22, 2025 08:28 PM PHT

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