Friday, October 01, 2004

NR1001:GSIS' Garcia and Landbank's Teves

Mula sa Tanggapan ni Anakpawis Rep. Crispin B. Beltran
News Release October 1, 2004
House of Representatives, South Wing Rm 602
931-6615 Ina Alleco R. Silverio, chief of staff
Celphone number 09213907362

Rep. Beltran seeks inquiry into role of Landbank President Margarito Teves in
transfer of GSIS funds from Landbank to Unionbank

Anakpawis Representative Crispin Beltran today questioned the national
government policy allowing the executives of government-owned-and-controlled
operations (GOCCs), departments and finance agencies to hold concurrently other
posts in other government firms and agencies, as well private corporations.

"Doesn't this create massive conflicts of interest? Government officials are
supposed to be public servants and their mandate should not be for
self-enrichment through the accumulation of personal wealth using the powers
and authorities of his post. The deep-seated corruption in government and the
massive drain of public funds and other resources is a direct result of the
unholy relations between the national government and the private sector," he

The veteran labor leader turned lawmaker cited the case of Winston Garcia,
President & General Manager and Vice Chairman, Board of Trustees of the
Government Service Insurance System (GSIS). Apart from being head exec of the
GSIS, he is also is also director of Meralco, the Philippine Stock Exchange,
Asean Social Security Association, San Miguel Corporation, The Manila Hotel
Corporation and Philippine National Construction Corporation, among other

Another government official with deep involvement in the private sector is
Margarito Teves, currently President and Chief Executive Officer of the Land
Bank of the Philippines, Meralco, a member of the Board of Directors of Great
Pacific Life Assurance Corp., Pacific Plans, Inc. and of the Board of Trustees,
Ayala Foundation, Inc., among other positions.

"Both Garcia and Teves are directors of Meralco, and it was between them that
the plans to transfer the funds of the GSIS from the Landbank to Unionbank was
hatched. The anomalous nature of the transfer should be thoroughly
investigated, and Teves' accountability along with it. As president of the
Landbank, Teves should not have allowed the fund transfer," Beltran pointed

Beltran said that he will file for a resolution calling for investigations
into Teves' approval of the fund transfer. "He is a public official, first
and foremost - and not a businessman. And this case only goes to prove that the
executives in government should not be allowed to occupy posts in the private
sector and vice-versa. Anomalies are inherent in the ties between government
and the private sector, and become even bigger and ingrained when government
officials themselves are directors of big private firms," he said.#


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