MANILA – Senator Risa Hontiveros urged the Government Service Insurance System (GSIS) to divest its more than P1 billion investment in online gambling company DigiPlus, citing gambling’s harmful effects and findings by state auditors that the investment did not comply with laws and existing policies.

At the Senate Committee on Government Corporations and Public Enterprises hearing on alleged unsound GSIS investments, Hontiveros pressed GSIS President Wick Veloso on why the pension fund for public employees continues to hold its stake in DigiPlus despite evidence of the negative social impact of online gambling.

“Dito sa Kongreso, papunta kami sa direksyon, at least ng striktong regulasyon kung hindi man total ban sa online gambling. Ayaw ba ng GSIS na unahan ang Kongreso to remove your valuable investment in an area, a policy area, na palayo doon? Doesn’t GSIS want to set a good example in this area dahil kayo nga yung stewards ng contributions ng ating mga miyembro?” Hontiveros asked.

Veloso said GSIS has not yet pulled out of DigiPlus due to market volatility and the need to ensure any exit still secures returns. Hontiveros countered, “Di ko alam kung anong hihintay na stability sa market sa sector na iyan. Samantalang, yung isang bilyong piso na iyan pwedeng-pwedeng i-invest sa ibang investment na stable, safe, at higit na mas makatao kesa sa online gambling.”

The senator highlighted that while GSIS has earned from the investment, financial gains cannot outweigh the broader public health and social costs of gambling addiction, including lost income, family breakdown, and community harm.

Veloso admitted that the social costs were not factored in when GSIS first invested, emphasizing only their mandate to grow the fund. Hontiveros questioned, “I understand na mandato ng GSIS na palaguin yung pondo niya. So therefore, are you telling us na completely agnostic, kahit pa may social costs na nadodocument ang isang potential investment ng GSIS, hindi siya maikikwenta dun sa calculated risk?”

She further stressed that GSIS has no excuse to delay action after the Commission on Audit (COA) flagged the DigiPlus investment as non-compliant with Republic Act No. 8291 (GSIS Charter) and the agency’s own investment guidelines, noting that the company lacked a three-year track record and failed to pay dividends.

“Ibig sabihin hindi po natin kailangan o dapat hintayin na mag-stabilize yung market. Ngayon pa lang dapat tumugon na ng GSIS sa COA at iwasto yung paglabag, pati sa sariling charter. May gabay na po, two years standing ang COA sa inyo,” Hontiveros said.

“Kayo na ang gumabay sa amin to show how ang mga GOCC’s natin over time even more and more selective sa paglalagakan nyo ng pondo lalo na ang kontribusyon ng ating public sector unions,” she concluded.