Marilyn Cahatol

GSIS Acting Chair Wick Veloso. Mark Demayo, ABS-CBN News

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ABS-CBN News

<p>MANILA — Government Service Insurance System President Jose Arnulfo Veloso on Friday argued that a P1.4-billion transaction with Alternergy Holdings Corp. that led to his suspension was &quot;conducted within legal bounds&quot;. </p><p>The Office of the Ombudsman had said the GSIS in November 2023 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. The anti-graft body added that that the shares were not listed with the  Philippine Stock Exchange during the payment of the subscription and that the deal  failed to comply with the minimum market capitalization and exceeded the free float market capitalization cap.</p><p>But Veloso said his 6-month suspension was &quot;based solely on an anonymous and unverified complaint.&quot; He added that the Ombudsman suspended him and 6 others officials without considering his counter-affidavit. </p><p>Veloso said the share deal “underwent rigorous evaluation and endorsement by the GSIS investment team, whose technical expertise in financial instruments and risk assessment confirmed that the Alternergy investment fell squarely within established parameters.”</p><p>“Certainly, the professional judgment of these experts holds significantly greater credibility than the unverified assertions of an anonymous source,” he said in a statement. </p><p>He said that board approval is required only for investments exceeding P1.5 billion, which meant that the Alternergy deal &quot;was well within the authority delegated to the President and General Manager.&quot; </p><p>He said the law allows GSIS to invest in preferred or common shares of listed corporations, even if the share was not listed at the time of purchase.</p><p>“It does not require that the specific shares be listed at the time of purchase - only that the issuing company be listed and regulated. Alternergy has been listed on the Philippine Stock Exchange since March 2023 and remains under full regulatory oversight,” said Veloso.</p><p>He said that the minimum market capitalization and free float market capitalization cap only apply for investments in publicly traded common shares, where liquidity risk must be managed. </p><p>Veloso noted the Alternergy deal was not for common shares and that the GSIS had subscribed to non-traded preferred shares that are fixed-income instruments designed for yield, not for trading.</p><p>“Applying market capitalization and public float criteria here reflects a failure to understand both the nature of the instrument and the purpose of the policy,” he said.</p><div><a href="https://www.abs-cbn.com/news/2025/7/24/groups-say-heads-should-roll-on-p1-4-billion-gsis-alternergy-deal-1754">Groups say &#x27;heads should roll&#x27; on P1.4-billion GSIS-Alternergy deal</a></div><p>He noted that barely a year after the investment was made, GSIS earned P117.9 million in cash dividends from Alternergy, “clearly disproving any suggestion of financial loss or mismanagement.”</p><p>Veloso added that since he assumed office, the fund had grown from approximately P1.54 trillion by end of 2021 to around P1.88 trillion as of June 2025. </p><p>He said the GSIS has extended its fund life up to 2058 or for 33 more years. </p><p>Veloso said he was “confident that a full and fair review of the facts will affirm the integrity of the Alternergy investment, that it was conducted within legal bounds, policy limits, and fiduciary standards — and was made solely with the best interests of GSIS members in mind.” </p><div><br/></div><div><strong>RELATED VIDEO:</strong></div><div style="text-align:center"><iframe width="560" height="315" src="https://www.youtube.com/embed/1Yr4WMCQScI?si=u2xjqjdEUzHrRXnA" title="YouTube video player" frameBorder="0" allowfullscreen=""></iframe><br/></div>

<p>Government Service Insurance System President Jose Arnulfo Veloso on Friday argued that a P1.4-billion transaction with Alternergy Holdings Corp. that led to his suspension was "conducted within legal bounds".</p>

Government Service Insurance System President Jose Arnulfo Veloso on Friday argued that a P1.4-billion transaction with Alternergy Holdings Corp. that led to his suspension was "conducted within legal bounds".

GSIS chief Veloso questions suspension, says P1.4-B share deal legal

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GSIS chief Veloso questions suspension, says P1.4-B share deal legal

Marilyn Cahatol,

ABS-CBN News

Published Jul 25, 2025 01:48 PM PHT

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Wick Veloso

GSIS

Alternergy

ABSnews

Ombudsman

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