The Government Service Insurance System (GSIS) must collect overdue loan obligations from principal loan amounts of P45 billion from its members and even loans granted to private companies of P2.114 billion, according to the Commission on Audit (COA).
It cited that the P2.114-billion outstanding principal of private companies accrued interest of P823.153 million through the years.
Its 2022 report is a reiteration of the audit observation made in 2021 with a total of P22.119 billion in private loans to 25 companies.
The amount was lessened to P2.114 billion as of Dec. 31, 2022, due to the account settlement of three companies.
State auditors, in the audit report, did not disclose the name of the firm with projects of Water Fun in Muntinlupa City and iQuezon 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 Dec. 31, 2022, could not be determined,” the report read.
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.