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GSIS chief Veloso placed under preventive suspension by Ombudsman

The Office of the Ombudsman has placed Government Service Insurance System (GSIS) President Jose Arnulfo 'Wick' Veloso and six other officials under preventive suspension without pay for six months amid its probe on the P1.4 billion deal with Alternergy. In an Order dated July 11, the Ombudsman said it 'found sufficient grounds' to place Veloso and six other GSIS officials under a six-month preventive suspension '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 P1.4 billion stock purchase from AlterEnergy Holdings Corporation. '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 said. Likewise, the Ombudsman said that the P1.4 billion worth of preferred shares were purchased by GSIS without the necessary endorsement from the Assets and Liabilities Committee (ALCO) and the Risk Oversight Committee (ROC) for the approval of the Board of Trustees (BOT). '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. GMA News Online has reached out to Veloso for comment but he has yet to reply as of posting time. Meanwhile, the Ombudsman said the GSIS officials can appeal the suspension, although its immediate implementation cannot be interrupted. —VAL, GMA Integrated News