COA: GSIS has P45-B overdue loans from members, P2-B from companies

Adrian Ayalin, ABS-CBN News

MANILA — The Commission on Audit has told the Government Service Insurance System to collect overdue loan obligations from principal loan amounts of P45 billion from its members as well as loans granted to private companies amounting to P2.114 billion.In the annual audit report on the GSIS for 2022, state auditors noted that the P2.114 billion outstanding principal of private companies had accrued interest amounting to P823.153 million through the years.The report is in reiteration of the audit observation made in 2021 with a total of P22.119 billion in private loans to 25 companies at that time.The amount was reduced to P2.114 billion as of December 31, 2022, after three companies settled their accounts.Leading the list of companies is “Company 1” with a P600 million principal loan currently running at 25 years.The audit report did not mention the company name but the projects were mentioned as Water Fun in Muntinlupa City, Water Fun in Quezon City, 102 units in St. John Condominium in Quezon City, 366 lots in Mary Homes Subdivision in Cavite, and rights to 240 units in Metro Homes, Manila.“Based on the available data, the outstanding balance of Company 1’s loan (including principal, interest and surcharge) as of December 31, 2022, could not be determined,” the audit report said.The auditors noted that the “unsound investment and inefficient collection” from 21 companies led to missed opportunities to invest the P2.144 billion in other ventures that could have yielded millions or billions of pesos.“Moreover, the management’s lack of a concrete action plan for the recovery of these loans, apparent slow proceedings to resolve the existing problems, and the delays in the foreclosure of assets, negotiations and settlement talks continue to deprive the agency as well as its members of the benefits from using the fund,” the audit report said.The audit report recommended that the GSIS management create a task force that will focus on the recovery of the outstanding loans and foreclose and dispose of all properties attached to them, among others.The audit report also flagged “inefficient collection, management, and monitoring” of due and demandable loans from both active and inactive members amounting to P45.583 billion.Included in the principal loans are P18.319 billion consolidated loans, P9.756 billion salary loans, P5.573 billion policy loans, and P5.282 financial assistance loans. Fifty-six percent of the demandable loans or P25.595 billion are from inactive members while 31 percent are from active members amounting to P14.171 billion, with 12 percent or P5.816 billion from unidentified entities.The auditors recommended that the GSIS management formulate effective collection programs to improve its overall collection efficiency.For its part, the GSIS management told the auditors that efficient and adaptive collection strategies are continuously being explored especially to address the complaints of its members on the continuous accrual of interests resulting from non-deduction of loan payments made through employers.“As a rejoinder, while the audit team commends the management’s efforts in its continuous actions in enhancing its system to achieve a more effective collection facility, the observation and recommendations are maintained until actual improvement is attained,” the auditors said.<figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2649174" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

COA has told GSIS to collect overdue loans worth P45 billion from its members as well as loans granted to private companies amounting to P2.114 billion.

COA: GSIS has P45-B overdue loans from members, P2-B from companies | ABS-CBN

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COA: GSIS has P45-B overdue loans from members, P2-B from companies

COA: GSIS has P45-B overdue loans from members, P2-B from companies

Adrian Ayalin,

ABS-CBN News

Published Jun 07, 2023 04:42 PM PHT

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Updated Jun 07, 2023 04:43 PM PHT

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