CLARK FREEPORT – Public school teachers and non-teaching personnel have arrears worth P23 billion of loans from the Government Service Insurance System (GSIS) and that no amnesty is forthcoming on their unpaid loans.
In a press conference here on Tuesday, GSIS chair Francisco T. Duque III said he has asked the assistance of the Commission on Audit (COA) in formulating measures to convince the teachers and other personnel to pay back their loans.
“They have the tendency to first pay loans obtained from private lending institutions which, in the end, charges them more fees on top of interests,” Duque lamented. The teachers and the non-teaching personnel constitute the biggest sector which has loan arrears with the GSIS, he noted.
He warned that unpaid loans, including interests, would be deducted from their pension benefits upon their retirement.
Despite the P23 billion arrears, Duque stressed that the GSIS remains financially healthy.
“Our assets have never been as significant as of last July. GSIS now has total assets of P1.7 trillion and we can assure members of further improvement of social insurance benefits and a stable loan portfolio,” he said.
He said GSIS’s liquid assets is now at P28 billion on top of investible funds worth P65 billion.
Duque also said the GSIS has a loan portfolio of P260 billion which covers P112 billion for members in the education sector.
“Our biggest investments are on fixed income returns, including Philippine government bonds, treasury bills and notes, among other such investments,” he said.
Duque said that the GSIS has kept as properties some 300 paintings, including Juan Lunas bought with much controversy during the term of ex-GSIS chairman Winston Garcia.
Some 90 of the paintings have remained on loan display at the National Museum, he said, noting that one painting of Juan Luna which was bought for P47 million during Winston’s time now has an estimated value of P256 million.
