JEDDAH, 1 October 2004 — THE ONGOING controversy surrounding the president of the Government Service Insurance System GSIS), Winston Garcia, and the way he has mishandled its funds shouldn’t have been allowed to drag on for so long. As soon as it looked like it was going to be a long and drawn out fight between Garcia and his critics in Congress, President Gloria Macapagal Arroyo should have issued Garcia his marching orders. But she hasn’t.
The main issue of contention has been the transfer of 19 billion pesos in state pension funds from the government owned Land Bank of the Philippines to the privately owned Union Bank of the Philippines.
Garcia claims he decided to move the funds because the Land Bank was allegedly insisting that GSIS maintain a minimum balance of 7 billion pesos, while Union Bank asked only for 1 billion pesos.
Much has been made of the fact that Garcia being a Cebuano, and the Union Bank being controlled by a prominent Cebuano family, the Aboitizes, means there has been collusion to favor Cebuano interests.
This is interesting because many commentators are suggesting that President Arroyo thanked the Cebuanos for the estimated 1 million votes they gave her in the past election, in part by giving the GSIS post to Garcia who is not even a banker or economist by training.
Garcia and his confidential advisers have already shown bad judgment in taking personal cash advances totaling five million pesos from GSIS. Considering that his annual salary is a whopping 7 million pesos, much more than what President Arroyo earns, one wonders why he has to use GSIS as his personal piggy bank!
Not only that, but Garcia is also accused of having lost valuable paintings owned by GSIS, valued at 262 million pesos. He denies these charges, but he has so far failed to prove his critics wrong.
Daily protests outside the GSIS headquarters in Manila have now become daily occurrences, with disgruntled GSIS employees calling for his resignation.
Garcia has stubbornly refused to resign, saying he serves at the pleasure of the president. President Arroyo so far has refused to fire him, and has also refused to come to his rescue, urging Garcia to explain his side to Iloilo Rep. Rolex Suplico and Bayan Muna Rep. Crispin Beltran.
Graft and malversation of public funds charges have been filed against him at the Office of the Ombudsman, but this doesn’t seem to have made Garcia pause. Instead, he’s fighting back viciously like a rottweiler who will never give up.
Daily appearances on the nightly news by an embattled Garcia, coupled with images of protesters being cruelly hosed down by anti-riot police, do nothing to boost investor confidence in the Philippines.
If President Arroyo were smart she would have said bye, bye to Garcia a long time ago, and appointed a trusted investment expert to head the GSIS.
Holding on to Garcia only makes her look beholden to political interests that helped her during the election.
When the GSIS funds are formed by the millions of contributions of working Filipinos for their retirement, should Arroyo really be playing politics with them?
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