CITING “strong evidence showing their (respondent’s) guilt,”
The Office of the Ombudsman said it has ordered seven officials of the Government Service Insurance System (GSIS), led by President and General Manager Jose Arnulfo A. Veloso placed under six-month preventive suspension in relation to the P1.45 billion investment in Alternergy Holdings Corp. (AHC) in 2023.
Ombudsman Samuel Martires signed the seven-page order on July 15, 2025.
Suspended together with Veloso were GSIS Executive Vice President (EVP) Michael M. Paxedes, EVP Jason C. Teng, Vice President (VP) Aaron Samuel C. Chan, VP Mary Abigail V. Cruz-Francisco, Officer II Jaime Leon K. Warren, and acting officer IV Alfredo S. S. Pablo.
“(T)his Office finds sufficient grounds to grant the recommendation for the issuance of an Order for Preventive Suspension against the following respondents from GSIS considering that there is strong evidence showing their guilt,” the Ombudsman said.
The respondents are facing administrative charges for grave misconduct, gross neglect of duty, and violation of reasonable office rules and regulations, which may warrant their removal from the service if found guilty.
Veloso and the other GSIS officials were reminded that the directive is immediately executory, which means implementation shall not be interrupted regardless of the filing of a motion for reconsideration, an appeal, or a petition challenging the order.
Only an order from the Ombudsman or from a court of competent jurisdiction will stop the implementation of the suspension.
The Ombudsman explained the continued stay of the respondents in their respective posts may prejudice the investigation aside from the need to preserve documents and other evidence pertaining to the case over which the said officials have control and custody.
The investigation which was prompted by an anonymous complaint centered on the GSIS’ purchase of 100 million perpetual preferred shares of AHC through a subscription agreement signed on Nov. 7, 2023.
According to the Order, investigators already submitted the Results of the Investigation on the said transactions as early as Jan. 30, 2025 with a recommendation for the suspension of the seven respondents.
Specifically, the investigators found that the investment was a violation of the 2022 GSIS Investment Policy Guidelines (IPG) and that it pushed through despite the absence of the required approval of its Board of Trustees (BOT).
Based on the findings of the ROI, the breach of the 2022 GSIS IPG were committed because the Perpetual Preferred Shares were not listed with the Philippine Stock Exchange (PSE) on the dates of the execution of the agreement and the payment of the subscription; the investment did not comply with the Minimum Market Capitalization as it exceeded the Free Float Market Capitalization Cap; and the purchase proceeded even if the shares did not have the necessary indorsement from the Assets and Liabilities Committee (ALCO) and the Risk Oversight Committee (ROC) to the Board of Trustees.
