Former vitality secretary Vicente Perez’s renewable vitality agency Alternergy defends the transaction saying it was above board, and that the GSIS will get a 56% price of return on its funding
MANILA, Philippines – The Ombudsman has preventively suspended Authorities Service Insurance coverage System (GSIS) chief Jose Arnulfo “Wick” Veloso and 6 different officers over the state company’s buy of 100 million shares of renewable vitality pioneer Alternergy Holdings Company price P1.45 billion.
In a July 11 order, Ombudsman Samuel Martires upheld the advice to preventively droop 7 GSIS officers for “gross misconduct, gross neglect of responsibility, and violation of affordable workplace guidelines and rules” for the Alternergy transaction.
Martires mentioned the share subsription deal, signed by GSIS and Alternergy Holdings on November 7, 2023, violated the GSIS’ funding coverage pointers and was achieved with out the approval of the GSIS Board of Trustees.
Ombudsman investigators had carried out an investigation into the transaction based mostly on an “nameless complainant,” and got here up on January 30 with their suggestion to preventively droop the officers and pursue an administrative case.
The six different GSIS officers preventively suspended are:
- Michael M. Praxedes, govt vice chairman
- Jason C. Teng, govt vice chairman
- Aaron Samuel C. Chan, vice chairman
- Mary Abigail V. Cruz-Francisco, vice chairman
- Jaime Leon Ok. Warren, officer II
- Alfredo S.S. Pablo, performing officer IV
The Ombudsman cited the next grounds for its ruling:
“(1) the Perpetual Most well-liked Shares weren’t listed with the PSE (Philippine Inventory Trade) on the dates of the execution of the settlement and the cost of the subscription;
“(2) the funding was non-compliant with the Minimal Market Capitalization and exceeded the Free Float Market Capitalization Cap;
“(3) the topic most popular shares had been purshased with out the required indorsement from the [GSIS] Belongings and Liabilities Committee (ALCO) and the Danger Oversight Committee (ROC) for the approval of the Board of Trustees (BOT).”
Veloso, in a press release despatched on Tuesday to the TV5 enterprise information present, Cash Talks, mentioned, “I’m holding off any media engagement till my counter-affidavit has been acknowledged by the Omubdsman.”
Veloso is a former president and CEO of Philippine Nationwide Financial institution, and likewise served as CEO of business financial institution HSBC Philippines the place he labored for 23 years. President Ferdinand Marcos Jr. appointed him to the GSIS in June 2022.
Alternergy’s protection
Alternergy, based by former vitality secretary Vicente Perez, defended the transaction by saying it was “totally documented, clear and above board,” and that the GSIS will get a 56% price of return on its funding.
“Alternergy has already remitted the primary Perpetual Most well-liked Shares (PPS) coupon totaling P118 million to GSIS in December 2024. This coupon is payable yearly and successfully offers GSIS a 56% return on its funding within the PPS, totaling P826 million, over 7 years,” the corporate mentioned in a disclosure to the PSE on Tuesday. “As well as, funds used to subscribe to the PPS amounting to P1.45 billion shall be returned to GSIS in full on the finish of the funding interval.”
Alternergy mentioned GSIS’ funding was in assist of the federal government’s objective of vitality transition, noting that the “proceeds of the funding had been used to speed up the event and building of Alternergy’s Tanay and Alabat wind tasks.”
“We’re assured that every one our actions adhere to the very best requirements of governance. Sustaining stakeholder belief is on the core of every part we do,” mentioned Alternergy president Gerry Magbanua, including that it was able to cooperate with any evaluate of the transaction.
In his column on Tuesday for Rappler, veteran enterprise editor Val Villanueva mentioned that “a misstep of this scale, compounded by potential authorized legal responsibility, threatens to undermine public belief within the nation’s pension system itself.”
“The implications of this scandal are far-reaching. The GSIS is without doubt one of the Philippines’ largest institutional traders, managing over P1.8 trillion in property. The fund exists to offer retirement, incapacity, and life insurance coverage advantages to authorities staff — resembling schoolteachers, troopers, police, healthcare staff — lots of whom reside on mounted incomes.
“If the P1.45 billion funding proves unrecoverable, it will characterize a direct hit to the fund’s capital base and, extra critically, a loss that the federal government might in the end be compelled to backstop with taxpayer funds,” he mentioned.
Alternergy, in its July 22 assertion, additionally mentioned it has been in a position to present “constant profitability and sturdy monetary development since its profitable preliminary public providing in March 2023.” It posted 241% development in web revenue from 2023 to 2024 (₱38 million to ₱129.6 million) and 60% income development from 2023 to 2024 (₱171.5 million to ₱274.9 million.
Villanueva, nonetheless, in his column mentioned Alternergy’s financials have deteriorated, citing the agency’s income drop from P1.2 billion in June 2022 to destructive P607 million in March 2025. – with studies from Lian Buan/Rappler.com
