₱200M ‘Ghost’ Scam and ₱1B GSIS Gambling Mess: Senators Blast Gov’t Corruption!

MANILA, Philippines — Two senators have raised red flags over separate but equally alarming issues involving public funds — one concerning alleged “ghost projects” in the government’s flood control program, and another involving questionable investments made by the Government Service Insurance System (GSIS).

Senator Panfilo “Ping” Lacson revealed on Monday night that his team uncovered a potentially bogus flood control project amounting to nearly ₱200 million. The discovery came during a Senate investigation into various infrastructure projects across the country.

Lacson said his office is preparing a privilege speech to expose the anomaly.

“It seems we’ve stumbled upon at least one ghost project. It’s still being validated, but the amount is close to ₱200 million with no actual work done on the ground,” Lacson stated. “We’re now checking and rechecking if this is truly a ghost project or if my team was just sent to the wrong location.”

The senator expressed full support for President Ferdinand Marcos Jr.’s recent crackdown on corruption, particularly his warning to lawmakers and officials allegedly involved in defective and anomalous flood control projects.

“When the President said ‘Mahiya naman kayo’ [You should be ashamed], he set the tone. The Department of Public Works and Highways (DPWH) has already submitted a report on these questionable projects. Now, the burden is on the President to ensure those involved — contractors and government cohorts alike — are held accountable,” Lacson emphasized.

GSIS Under Fire for Risky Investments

Meanwhile, Senate Deputy Minority Leader Risa Hontiveros slammed the GSIS for endangering the retirement funds of millions of government workers through high-risk and allegedly improper investments.

In a privilege speech delivered Tuesday night, Hontiveros called out GSIS for investing over ₱1 billion in DigiPlus Interactive Corp., one of the country’s top online gambling platforms.

“GSIS investments should be sound, safe, and compliant with regulations. But the leadership itself seems to be breaking those rules,” Hontiveros said.

She also cited a ₱19.1 million paper loss from GSIS’ stake in Del Monte Pacific Ltd., and a ₱1.45 billion investment in Alternergy Holdings Corp., a renewable energy firm headed by former Energy Secretary Vicente Perez Jr., despite its lack of a solid profitability record.

Last month, the Office of the Ombudsman ordered the preventive suspension of GSIS President and General Manager Jose Arnulfo “Wick” Veloso and six other officials over the Alternergy investment.

According to a 2023 Commission on Audit (COA) report, GSIS incurred ₱251.37 million in valuation losses from investments in companies that did not meet the basic criteria required under the Revised GSIS Act.

“This is no longer risk-taking. This is reckless. It’s as if GSIS is gambling away the hard-earned money of our public servants,” Hontiveros warned. “We must act now to strengthen transparency, accountability, and oversight in GSIS’ investment decisions.”

She urged her fellow lawmakers to launch a thorough investigation and enact reforms to protect the financial future of government employees.