The Office of the Ombudsman placed Government Service Insurance System (GSIS) President Jose Arnulfo “Wick” Veloso and six other officials under a six-month preventive suspension without pay for the purchase of P1.45 billion in preferred shares from Alternergy Holdings Corp. in November 2023.
In a seven-page order dated July 11, the anti-graft body cited that it found sufficient grounds to suspend Veloso, executive vice president Michael Praxedes, executive vice president Jason Teng, vice president Aaron Samuel Chan, vice president Abigail Cruz-Francisco, officer II Jaime Leon Warren, and acting officer IV Alfredo Pablo.
This is “considering that there is strong evidence showing their guilt” of possible grave misconduct, gross neglect of duty, and violation of reasonable office rules and regulations over the P1.- billion stock purchase from Alterenergy.
Despite the order being executory, the Ombudsman ruled that Veloso and the six other officials can still file an appeal on their suspension.
“The [Ombudsman’s Results of Investigation] expounded that the provisions [of the GSIS Investment Policy Guidelines] were contravened by the respondents because: the Perpetual Preferred Shares were not listed with the PSE (Philippine Stock Exchange) on the dates of the execution of the agreement and the payment of the subscription, the investment was non-compliant with the Minimum Market Capitalization and exceeded the Free Float Market Capitalization Cap,” the Ombudsman resolution read.
The GSIS executives purchased the preferred shares without the necessary endorsement from the Assets and Liabilities Committee and Risk Oversight Committee for the approval of the Board of Trustees.
“Their continued stay in office may prejudice the investigation of the case filed against them. [The suspension order is being issued] in order to preserve documents and evidence pertaining to this case which they have control and custody; and in order to avoid respondents’ commission of further malfeasance and/or misfeasance in office,” the Ombudsman said.
