ASEAN KEY DESTINATIONS
Philippines investment abroad questioned
"The first offshore placement is forgivable but a second overseas foray would be high treason amid the difficulty in looking for funds to bankroll new highways, toll roads, airports, irrigation facilities and more MRT/LRT [Metro Rail Transit/Light Raul Transit] lines," Recto added.
He said he could not understand why the GSIS was raring to invest more pension funds abroad while the government was trying to identify sources of funding for its PPP projects.
Recto stressed that the pension funds that would be invested locally should have a government guarantee to protect its members, and should have no adverse impact on the agency's actuarial life.
"The local earnings may not match or surpass the 7 percent per annum ROI derived by GSIS from its overseas investments but these could be money worth invested for a national cause," he said.
Recto believed that every GSIS member would stand proud seeing highways and railways funded from their own pension contributions.
He urged President Benigno Aquino 3rd and the GSIS to stop the plan to invest $400 million more abroad, and to repatriate a sizeable amount of the $600 million already invested abroad to boost the financing pool for the big ticket infrastructure projects of the new administration.
"After drawing flak for the fat paychecks and bonuses of its top executives, this could be GSIS' fresh shot at redemption," Recto added.
At least 10 PPP projects are lined up next year from an original list of 70, which would include airport projects in Panglao Island off Bohol and in Daraga, Albay.
The short list also included the improvement of the Laguindingan airport in Misamis Oriental, an irrigation facility in Sultan Kudarat and additional lines of the LRT system.
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