SSS lifestyle check eyed; contribution hike to proceed

MANILA, Philippines — Bayan Muna Rep. Carlos Zarate urged President Duterte yesterday to order a lifestyle check on all board members and officers of the Social Security System (SSS).

“This is to find out those who are using their positions to enrich themselves. They must remember that they are there to serve the members of the SSS and most of them are political appointees. They are not there to become rich but to share their supposed skills and talents to the people,” he said.    

“As it is, the salaries and bonuses of SSS officials are already so high compared to other government-owned and controlled corporations, so they must do all they can to serve the people honestly,” he said.

At least four SSS officers are reportedly under investigation by an internal panel for alleged conflict of interest for buying shares of stock for themselves upon the advice of a stockbroker hired by the SSS. 

The officers were in charge of stock purchases. They were supposed to buy shares of stock for the SSS and not for themselves.

It was learned that the irregularity happened under the new SSS management led by former law dean and Duterte supporter Amado Valdez.

The committee on banks and financial intermediaries of the House of Representatives chaired by Eastern Samar Rep. Ben Evardone will inquire into the stock purchase anomaly when Congress resumes session on Nov. 20.

Higher contributions

Meanwhile, SSS is still keen on pursuing its plan to increase the contribution of its members despite calls to suspend such move amid the stock trading controversy in the agency.

In an interview with the ABS-CBN News Channel, SSS president and chief executive officer Emmanuel Dooc said the SSS would still push through with the proposed contribution hike of its members to preserve the viability of the state pension fund.

“I will still pursue the contribution hike. I think the financial strength, the robustness of the fund will define my presidency. And I think that vision is shared by many of our commissioners,” Dooc said.

Earlier, the Partido Manggagawa called on the SSS to suspend its plan to increase members’ contributions until it fixes the internal issue plaguing the agency.

This refers to the administrative complaint filed by SSS commissioner Jose Gabriel Laviña against officials for allegedly trading stocks using information acquired from an SSS-accredited stockbroker.

These officials were named as equities investment division chief Reginald Candelaria and equities product development head Ernesto Francisco Jr.

SSS executive vice president Rizaldy Capulong and chief actuary George Ongkeko Jr. were also named in the complaint for allegedly neglecting their duties and allowing the other two officials to do the transaction.

According to Dooc, the complaint arose from the officials’ failure to inform the SSS of the planned initial public offering (IPO) of companies, which could have served as potential revenue sources for the state fund.

“There was a failure on their part to duly inform the SSS about the potential investment offered by these companies that will IPO. So there were some lost opportunity to the SSS,” Dooc said.

Asked if the allegations against Candelaria and Francisco could be considered “insider trading,” Dooc said “that will be looked into during the investigation.”

The SSS is authorized to invest in shares of stocks listed in the stock exchange provided that such investment shall not exceed 30 percent of its Investment Reserve Fund.

Dooc reiterated that no money from the state fund was used or compromised in the alleged illegal stock trading.

President Duterte earlier this year approved P1,000 hike in the pension benefits of SSS members, which shortened the actuarial life of the state fund to 2032 from 2042.

To extend the actuarial life of the state pension fund, the SSS is pushing for the increase in the contribution rate of its members, as well as the increase in the maximum salary credit to P20,000 from the current P16,000.

Dooc earlier said the plan to increase members’ contributions was deferred to 2018, after the enactment of the tax reform bill and the amendments of the SSS charter.             –  With Mary Grace Padin