Current and former members of the Government Service Insurance System (GSIS) Board of Trustees have accused GSIS President and General Manager Jose Arnulfo “Wick” Veloso of overseeing billions in investment losses while promoting what they called “illusory growth metrics” to paint a false picture of financial strength.

The statement, issued days after several trustees formally demanded Veloso’s “immediate and irrevocable” resignation, claimed that the state pension fund incurred P8.8 billion in losses due to investments they described as “risky, underperforming and insufficiently vetted.”

According to the trustees, GSIS’ reported asset growth was “predicated on misleading metrics and structural inflows” rather than actual investment gains. They argued that much of the increase stemmed from unrealized property revaluation gains and automatic premium collections from its mandatory membership base—features they said do not reflect sound or strategic fund management.

“The true, dependable income of the GSIS continues to be derived from its legacy investment portfolio established before the current administration,” the signatories said.

By contrast, they asserted, most of the investments introduced or endorsed by Veloso “have overwhelmingly underperformed,” with many now posting significant losses.

The trustees further alleged that these losses were compounded by weak internal controls and attempts to bypass established governance protocols. They accused Veloso of proceeding with high-risk investment ventures “without proper Board review, scrutiny, or risk assessment.”

“The very purpose of a Board review is to provide a crucial layer of scrutiny, risk assessment, and collective judgment,” the statement read. “It was precisely by evading this process that PGM Veloso was able to proceed with the underperforming ventures that have now resulted in substantial losses.”

They described the situation as a “failure of governance” and called for a comprehensive investigation into the investment decisions made under Veloso’s leadership.

Earlier this month, a group of GSIS officials identified several transactions allegedly contributing to the P8.8-billion loss. These included dual-tranche placements in Monde Nissin Corp., Nickel Asia Corp., Bloomberry Resorts Corp. and DigiPlus Interactive Corp., which they said resulted in combined losses of P3.67 billion. Also flagged were controversial investments in Alternergy Holdings Corp., Figaro Coffee Group, Udenna Land Inc. and 8990 Housing Development Corp., which they described as “risky and imprudent.”

They also raised concern over GSIS’ exposure to private equity funds managed by Neuberger Berman and NightDragon, warning these introduced “a grave and unacceptable level of risk” to members’ retirement savings.

The trustees cited the Mercer CFA Institute Global Pension Index 2025, which ranked the Philippine pension system among the weakest globally, and warned that continued mismanagement could further erode trust in the country’s already fragile retirement safety net.

They urged immediate transparency and accountability, saying only a “rigorous examination of tangible performance and procedural integrity” can safeguard the fund’s long-term stability.

“Only through an honest assessment of the facts can we truly protect the future of the Fund and the welfare of its members,” they said.

The statement was signed by current Audit Committee Chairperson Rita Riddle, incumbent trustees Ma. Merceditas Gutierrez and Evelina Escudero, and former board members Alan Luga and Jocelyn Cabreza.