Hontiveros: GSIS Gambled P1B Investments in Online Casino

Sen. Risa Hontiveros

Hontiveros: GSIS Gambled P1B Investments in Online Casino

By Wilma N. Yamzon – TheNationWeek.Com | August 8, 2025

MANILA, Philippines – A bombshell allegation has rocked the Government Service Insurance System (GSIS), with Sen. Risa Hontiveros claiming that a staggering P1 billion of public employees’ pension funds was invested in an online gambling platform.

The revelation has ignited calls for a Senate investigation and raised serious questions about the oversight and management of the nation’s pension system.

In a privilege speech, Hontiveros detailed how the GSIS, under the leadership of its suspended President Jose Arnulfo Veloso, allegedly poured funds into DigiPlus shares when they were trading at a peak of P65.30.

Since then, the stock has plummeted to a low of P13.68, resulting in significant losses for the pension fund.

“What was GSIS thinking, investing funds in online gambling?” Hontiveros questioned. “Government employees can’t even set foot in a casino, let alone gamble there.”

Hontiveros asserted that the investment appears to be part of a “pattern of reckless and questionable investment decisions” under the current GSIS leadership.

She suggested a breakdown in the safeguards to protect the pension fund.

“The guardrails we have put in place to guide and protect GSIS investments are seemingly being breached,” she stated.

Sen. Erwin Tulfo, chair of the Senate committee on games and amusement, immediately responded, vowing to launch a full investigation into the matter.

“I am with you, Senator Risa, on this matter, and I want this to be investigated,” Tulfo declared.

He also indicated his intention to pursue legislation that would hold Veloso accountable if wrongdoing is uncovered, hinting at potential charges if evidence of commissions or kickbacks emerges.

“I will investigate this to see if anyone benefited… This is not acceptable.”

This controversy comes on the heels of Veloso’s recent preventive suspension by the Office of the Ombudsman, related to a separate investigation into a P1.4 billion deal with Alternergy. The Ombudsman cited “sufficient grounds” and “strong evidence” of possible grave misconduct, gross neglect of duty, and violation of office rules in connection with the Alternergy stock purchase.

Veloso, through GSIS, has acknowledged the Ombudsman’s inquiry and stated that the agency is cooperating fully.

“We welcome this opportunity to affirm the integrity of GSIS’s investment decisions and will provide further updates once the process concludes,” he said, declining further comment due to the ongoing investigation.

Hontiveros has also criticized the Alternergy deal, pointing out “multiple red flags,” including Alternergy’s market capitalization being far below the GSIS policy minimum for investible companies and shares not being listed on the Philippine Stock Exchange at the time of the agreement.

She also raised concerns about Alternergy’s high debt levels, questioning how the company could declare a P40 million cash dividend while seemingly in financial distress.

The allegations against GSIS have ignited a firestorm, prompting urgent calls for reform and greater transparency in the management of public sector pensions.

Hontiveros has urged the Senate to swiftly review GSIS’s investment policies and procedures, strengthen compliance and oversight, and increase accountability. “The pension of the public sector is not for gambling,” she emphasized. “GSIS should not waste or gamble away the future of those who serve our nation.”

The Senate investigation promises to be a crucial step in safeguarding the financial security of countless government employees and restoring public trust in the institutions that manage their retirement savings.