Sen. Recto tells GSIS to invest in RP not abroad

A senator on Sunday asked state-run pension fund Government Service Insurance System (GSIS) to explore possible investment options in the country before taking the money somewhere abroad. Sen. Ralph Recto, who heads the Senate committee on government corporations and public enterprises, raised his concern in a statement Sunday after getting a whiff that the GSIS was planning to invest $400 million overseas. The money can be used to start the government’s big-ticket projects under its public-private partnerships program, Recto said. “I strongly urge President [Benigno] Aquino III to issue a ‘hold departure order’ on these funds," he said. Recto said it was surprising that the $600 million GSIS invested abroad was only earning 7 percent. “[And] sending away another $400 million would be utterly vulgar," he added. The senator said the government should consider repatriating a chunk of the $600 million already invested abroad “to boost the financing pool for the infrastructure projects" of the Aquino administration. “As the new government lays down the blueprint of its PPP program, the GSIS could assume an active role by sending back home its overseas investments," Recto said. The state pension fund’s off-shore investments are managed by Amondi of France ($400 million) and Pimco Equity of California, USA ($200 million). “It’s time to… wire transfer them to Juan de la Cruz," Recto pointed out. “If we can’t get respectable returns on these investments abroad, we should rather use it here to serve as a funding catalyst for the PPPs," he reiterated. Last week, GSIS senior vice-president for asset management Lorenzo Sixto Lichauco told lawmakers that the state-run firm is mulling to make additional investments abroad. President Aquino has made a policy statement that most of the major projects of his government would be undertaken with the private sector under the PPP program. At least 10 PPP projects are lined up next year from an original list of 70, including airport projects in Panglao Island in Bohol and in Daraga, Albay. The short list cited improving the Laguindingan airport in Misamis Oriental, an irrigation facility in Sultan Kudarat, and additional lines of the Light Rail Transit system. At end-June this year, GSIS reported P541 billion in reserves and P38 billion in unassigned surplus. —JE/VS, GMANews.TV