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February 2025
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February 2025
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Philippine audit commission flags GSIS for investing in unprofitable firms

The Commission on Audit says it has recommended GSIS to recover the stock investments from the three companies
By Goh Thean Eu   
January 20, 2025

The Philippines’ audit commission has found that the Government Service Insurance System (GSIS) invested 2.3 billion pesos (US$39.26 million) in the stocks of three companies that have no profit record and haven’t paid any dividends in the past three years.

The three companies incurred a valuation loss of 251.37 million pesos in 2023, the Commission on Audit says in its annual report flagging the civil service pension fund’s investments.

The firms were not identified.

According to the report, GSIS management agreed to the commission’s recommendation to recover the investments “at a term not disadvantageous” to the pension fund.

The report also called out GSIS for failing to collect 14.75 billion pesos in premiums that were deducted from the salaries of several government entities, and recommended that the fund prepares “a realisable collection or recovery plan”.

Spokespersons for the pension fund did not immediately respond to questions from Asia Asset Management.

The GSIS had 1.68 trillion pesos of assets as of end-2023.