Mar 202014
 
The Court of Appeals has upheld the conviction of former Justice secretary Agnes Devanadera of misconduct in connection with the attorney’s fees she received from the Government Service Insurance System (GSIS) in 2007.

In a 23-page decision, the CA’s Sixth Division “partially granted” a March 4, 2010 decision and a February 10, 2012 review by the Office of the Ombudsman finding Devanadera guilty of simple misconduct, simple neglect of duty, and conduct prejudicial to the best interest of duty.

The CA, in its ruling penned by Associate Justice Romeo Barza, affirmed the Ombudsman rulings but said they were “subject to modifications.”

Among the modifications was the penalty imposed on Devanadera, who, aside from being a former Justice secretary, also served as Solicitor General during the Arroyo administration.

“In lieu of the penalty of one year without pay, she is ordered to pay a fine equivalent to her salary as government corporate counsel for six months,” the CA said.

The CA also ordered Devanadera to “restitute to the Office of Government Corporate Council trust liability account” an amount of P760,000.

The Ombudsman had convicted Devanadera and her former head executive assistant Rolando Faller in connection with an agreement with the GSIS to handle the extrajudicial foreclosure of delinquent real estate loans in 2007.

In exchange, the Chief Government Corporate Counsel (OGCC) would get special assessment fees for its help.

The two officials allegedly received various amounts from the special assessment fee that the GSIS had put up, including P500,000 for Devanadera and P200,000 for Faller as attorney’s fees.

The Ombudsman, however, ruled that neither Devanadera nor Faller was entitled to such payment because it was against the provisions of Section 10, Chapter 3, Title IV, Book IV of the Administrative Code of 1987 and the 2004 OGCC Office Order No. 0006.

According to the Ombudsman, Devanadera deposited into her personal bank account a check for P450,000—already minus the P50,000 withholding tax—while Faller encashed his P180,000 check, which was less P20,000 for the withholding tax.

In explaining the modifications it made on the Ombudsman rulings, the CA said even the Commission on Audit had already said it “thought the petitioner’s actions were permissible under the law.”
 
“Furthermore, the records of the case even show that monies received by petitioner and Faller were subjected to taxes before they received the same,” the CA division said, adding these considerations “entitle petitioner to claim good faith.” — KBK, GMA News

Jul 152013
 
GSIS mulls return to int’l financial markets next year

MANILA, Philippines – State pension fund Government Service Insurance System (GSIS) is reconsidering tapping the international financial markets next year with a placement of between $300-$400 million amid improving economic prospects for the United States and Japan. In a briefing yesterday, GSIS president Robert Vergara said the plan is hinged on several domestic factors such as the stock market’s performance by the end of the year.  “We haven’t definitely decided whether we’re going international.  It all depends on domestic valuations, how the market performs at the end of year but I think it’s time for us to reconsider whether deploying assets externally will help dampen the volatility,” Vergara said. Volatility in emerging markets has been rising as foreign investors pull out of the world’s most expensive equities given the US Federal Reserve’s moves to scale back its massive bond-buying program. “If the market continues to correct, then why should we go outside and take foreign currency risk?  At the moment investing abroad is not something in the cards, although we’ll look at it as the market progresses.  It could be placements in stocks, bonds or private equity,” Vergara said. Vergara said the fund is looking to invest around $300 million to $400 million in the event it decides to go back to the overseas markets. This is roughly the same amount it shelled out for its first infrastructure project. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Like all things we do, we never go out there and take Read More …

Jul 052013
 
GSIS to increase exposure in stock market – Vergara

MANILA, Philippines – The Government Service Insurance System (GSIS) continues to take an active approach to equity investing by leveraging opportunities in a volatile market, according to its top official. GSIS president and general manager Robert Vergara said the country’s largest pension fund remains a long-term investor in the stock market and sees market volatility as an opportunity to load up on stocks with strong fundamentals. “We will increase our exposure whenever there are opportunities to add to our investments at attractive valuation levels as we have done in recent weeks,” Vergara said. Vergara said the fund also continues to be on the lookout for alternative investments that will boost returns amid a low interest rate environment. Just recently, GSIS participated in the preferred share offering of listed gaming firm Leisure & Resorts World Corp. (LRWC), taking up P800 million out of the P1.65 billion deal. The non-voting and non-participating preferred shares have a coupon rate of 8.5 percent per annum and are paid semi-annually. For each 20 preferred shares, the holders are entitled to one warrant convertible to common shares starting on the fifth year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Each warrant, if exercised at a price of P15 or the average weighted trading price for the three months prior (whichever is lower) will be converted to one common share. Vergara said the fund’s investment in LRWC reflects the agency’s confidence in the Philippine gaming industry, which is forecast to generate total revenues of $2.5 Read More …

May 252013
 
Know how to avail of SSS,GSIS educational loan

Need to enroll for college but short in cash? You may avail of the Social Security System or Government Service Insurance System education loans as long as you are an active contributing member with a monthly income of P25,000 or below, a television report on Friday said. SSS can provide up to P20,000 educational loan in one semester for a college student taking up a four-year course, Sherrie Ann Torres reported on GMA’s “24 Oras” on Friday. For those taking up vocational course, SSS can extend P10,000 loan. “After the four-year course plus the one year grace period, so our member starts paying or amortizing for six years. Three percent lang lumalabas ‘yung loan sa SSS so very affordable ang loan repayment,” said Luz Generoso, assistant vice president at SSS Loans and Assets Management Department. In April, SSS president and chief executive officer Emilio de Quiros Jr said members earning P25,000 and below per month are now eligible for Educ-Assist loans from the previous P15,000 maximum monthly income requirement. Meanwhile, for GSIS members, the state-run agency provides one-time educational loan for its members worth P4,000, the “24 Oras” report said. GSIS also provides scholarships to 200 incoming college freshmen, whose parents are from low to middle ranking regular government employees. A scholar with a four-year college course will receive P20,000 per semester and a monthly allowance of P2,000. “Dapat incoming freshman ka, so dapat magsimula tayo sa umpisa. Basta po ang bata ay nakapasa doon sa eskuwelahan na kanyang napupusuan [pwede Read More …