The board of trustees of state-run Government Service Insurance System revoked on Thursday board resolutions that authorized the sale of properties at the Manila North Harbor, including a 672,645-square-meter property where International Container Terminal Services Inc. operates.
GSIS chairman and officer-in-charge Rolando Macasaet said in a message to Finance Secretary Carlos Dominguez III that the revocation of the resolutions on the planned sale of the North Harbor property was one of the matters tackled by the board after President Rodrigo Duterte accepted the resignation of GSIS president and general manager Jesus Clint Aranas.
The Finance Department exercises administrative supervision over government financial institutions including GSIS pursuant to Executive Order No. 251 (s. 2000).
Macasaet said that during the board meeting, the board accepted the resignation of president and general manager Jesus Clint Aranas and “revoked resolutions authorizing the sale of the ICTSI/PPA property until further review and consultation with all concerned stakeholders.”
“In fairness to the board, Atty. Aranas always assured the board that this transaction had the approval of PRRD [President Rodrigo Duterte,” he said in a text message to Dominguez.
GSIS revoked Board Resolution No. 38 dated Feb. 27, 2018 that approved the sale and disposal of Manila International Port Terminal Inc. through public bidding and Board Resolution No. 89 dated June 25, 2019 that approved a higher minimum bid price.
Macasaet said that he also assumed the OIC position of GSIS as instructed, and would officially advise Malacañang Palace through Executive Secretary Salvador Medialdea and Dominguez through a formal letter.
Before the resignation of Aranas on Tuesday, GSIS was in disagreement with ICTSI and the Philippine Ports Authority over the planned sale of a 672,645-square-meter property at Manila North Harbor.
ICTSI earlier questioned the plan, saying it would hamper its operations at the site.
Aranas said in a news briefing in June that GSIS was bent on pursuing the sale of its non-performing assets in Port Area, Manila amid the increase in zonal valuation of the properties. Aranas said the pension fund would want “to sell the assets as soon as possible.”
Aranas said the Port Area assets are composed of residential, commercial and industrial lots. Commercial and industrial lots measure 672,645 square meters, while the residential areas measure 109,212 square meters for a total area of 781,857 square meters.
As per the Bureau of Internal Revenue website, the zonal valuation of the Port Area properties in 2018 reached P25.56 billion for the commercial/industrial properties and P412.82 million for residential lots.
The May 2019 zonal valuation of the BIR showed the commercial/industrial areas were valued at P33.63 billion, while the residential areas were valued at P3.82 billion.
Aranas said GSIS was planning to sell the Port Area properties “as is, where is.”
Aranas submitted his resignation weeks later, citing “personal reasons” for deciding to quit.
“I resign secure in the knowledge that I have unwaveringly advanced the interest of GSIS and its members in discharging the functions of the said office always in obeisance to all the laws and never once compromising my integrity or that of the office I now relinquish,” he said.
Aranas’ resignation came following reports on the Commission on Audit’s order for the GSIS to refund P260.5 million in incentives given by the pension fund’s management to its employees, calling them “illegal expenditures.”
GSIS posted a quadruple increase in net income in the first quarter to P38.7 billion from P9.05 billion a year ago, driven by the rise in stock market values, increase in interest income and higher premium contributions.
