Press Release
October 4, 2008

CHIZ URGES GSIS TO SHOW PROOF FUNDS ARE INTACT, SAFE

GSIS asked for details of the $600 million investment in global investment program

Senator Chiz Escudero, chairman of the Senate Ways and Means Committee, has put to task the Government Service Insurance System (GSIS) to publicly disclose the extent of its US investments to assure its members and the general public that its investments are intact, safe and well protected.

This after the GSIS' continued refusal to give detailed investments in the American market following the collapse of US firms Lehman Brothers and American International Groups.

Escudero said even with the general statement issued by GSIS that its members have "nothing to worry about the impact of the collapse of the Lehman Brothers and AIG" and after the bail-out package of the US government to its troubled financial institutions, GSIS has an obligation to assure its members by providing the details of its investments made by its fund managers.

"The GSIS is in bind to, more than anyone else, its members to show proof that not only are their investments intact and well protected but that it remains to be so. Its continued refusal to disclose its global investment programs (GIP) only adds to the jitters felt by the public".

Earlier this week, the GSIS had said, after much prodding from lawmakers and various groups, that it had so far disbursed a total of $600 million to its fund managers.

GSIS said it had named the ING Investment Management and Credit Agricole Asset Management (Singapore) Ltd as global fund managers for the global investment program with each given a mandate of $300 million each.

GSIS President Winston Garcia had said, "our fund managers were given flexibility to determine their investment strategy in both the asset selection and the instrument selection".

However, Escudero continued to press GSIS to provide details on how much discretion was given to these fund managers with respect to how and where the GIP investments are to be made.

"If they are not hiding anything and indeed the funds are safe, come out with the proof and let the public know the details of the investments made by these fund managers".

"We want to know, is GSIS even aware of the investment strategy adopted by these fund managers and the corresponding asset selection and instrument selection they have made on behalf of GSIS"?

The senator added that the GSIS should be able to fully account for the entire amount of the GIP because "$600 million dollar, if that is what they only invested in GIP, is the blood and sweat of its million members who are already grappling with the global economic slowdown".

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