PASAY CITY/QUEZON CITY – The Office of the Ombudsman has placed GSIS President Jose Arnulfo “Wick” Veloso and six other officials under preventive suspension over a P1.4 billion transaction with Alterenergy Holdings Corp.

Aside from Veloso, GSIS officials Michael Praxedes, Jason Teng, Aaron Samuel Chan, Mary Abigail Cruz-Francisco, Jaime Leon Warren, and Alfredo Pablo were also preventively suspended over the deal.

According to the Ombudsman, the deal “breached” the 2022 GSIS Investment Policy Guidelines.

The anti-graft body noted that in November, 2023, the GSIS subscribed to 100 million preferred shares of Alternergy at P14.50 per share without endorsement from crucial committees and approval from the Board of Trustees.

The Ombudsman added that the shares were not listed with the  Philippine Stock Exchange during the payment of the subscription. It said the deal also failed to comply with the minimum market capitalization and exceeded the free float market capitalization cap.

The Ombudsman said there was a “strong evidence showing their guilt” on the charges against the officials for grave misconduct, gross neglect of duty, and violation of reasonable office rules and regulations may warrant their removal from the service. 

“Their continued stay in office may prejudice the investigation of the case filed,” the order stated.  

Following the suspension of the seven officials, GSIS  assured its members and pensioners that all programs and transactions remain fully operational. The GSIS Board of Trustees said it has taken immediate steps to ensure business continuity and uninterrupted delivery of services.

“All programs, member transactions, and benefits delivery remain fully operational and uninterrupted,” the GSIS said.

To ensure leadership continuity, the Board designated Executive Vice President for Support Services Juliet Bautista as officer-in-charge of the GSIS during a special board meeting.

Bautista, a certified public accountant with more than 20 years of experience in auditing, accounting, and financial systems, will temporarily assume the responsibilities of president and general manager. She previously headed the Internal Audit Services Office, playing a key role in securing GSIS’s ISO 9001 (service quality) and ISO 27001 (data protection) certifications.

The Board emphasized that the integrity of the institution and the protection of members’ funds remain its top priorities.

“Safeguarding the institution’s integrity and protecting members’ funds remain our highest priorities. We continue to invest in governance reforms and strengthen internal controls to further enhance system resilience and transparency,” GSIS said.

Bautista holds a Master’s degree in Business Administration from the Ateneo de Manila University and a degree in Accountancy from the University of Santo Tomas.