Workers demand full disclosure of GSIS exposure in failed US banks

MANILA, Philippines – Workers nationwide demanded yesterday full disclosure of the investments of state-run Government Service Insurance System (GSIS) with various foreign entities.

The Trade Union Congress of the Philippines (TUCP), the country’s largest labor group, said the workers and pensioners have the right to know where their money is being invested.

TUCP secretary-general and former senator Ernesto Herrera said GSIS admitted investing money in US and European entities, but refused to provide any other details.

“All that we want is for the GSIS to be more open. Secrecy breeds irregularities, whereas transparency promotes accountability,” Herrera said.

Herrera said the GSIS should follow the example set by the world’s largest public pension fund, the California Public Employees’ Retirement System (CalPERS), which had $240-billion worth of investments in the US and around the world as of June 30, 2008.

“If we look at CalPERS, the system even reports on its website the exact number of shares of stock that it holds, including the acquisition cost of every lot of stock, whether US or foreign stocks. CalPERS also posts on its website the aggregate daily market value of its investment portfolio for all to see,” Herrera pointed out.

He added that CalPERS has become the model for all public pension funds around the world when it comes to good governance and transparency, and both the GSIS and the Social Security System would do well to follow its example.

Herrera also cited the need for the GSIS to fully disclose the terms of its contracts with Credit Agricole Asset Management Ltd. and ING Investment Management, the designated fund managers of the Global Investment Program (GIP).