UPDATE on the Rice Subsidy

Yesterday afternoon, October 4, a pre-bidding conference with prospective bidders for our rice subsidy was held by the UP Manila Bids and Awards Committee I (BAC I). The All UP Workers Union Manila was represented by Mr. Ernesto Ragudos upon my request as I have a prior speaking engagement with 2nd year nursing students of the Manila Central University (Kalookan).

Those who participated were the Primavera Rice Mill Corp. (the previous rice supplier) and Masaganang Sakahan (a Land Bank Subsidiary).

Based on the bidding schedule, the bids will be opened on Monday, October 18, 2004 and delivery of rice is expected one week later. The Union has already opted to have the delivery of rice in the offices and no longer through house-to-house.

There were some problems from PGH but we consider these as procedural in nature that should be addressed by approporiate levels and offices without necessarily delaying further the bidding and delivery schedule.

For those who kept on asking (there were reports that there was already a circulated petition that opted for cash rather than rice) if the fund for rice subsidy would be taken from the P5,000.00 year-end incentive bonus, we reiterate our position that we are against such arrangement. About a month ago, we have already queried the UP Central Administration and we were told by Vice President Martin Gregorio that at this point in time we are only talking here of the rice subsidy, the year-end incentive bonus was yet to be discussed by Management, noting the possibe implications of the austerity program of the National Government.

Considering such responce, we are advising our colleagues especially those from PGH Budget Office to refrain from speculating or disseminating unfounded perceptions. UP Manila's Vice Chancellor for Administration Dr. Arlene Samañiego had already talked with UP Manila and PGH Budget people regarding this matter upon query also from our end.

We note that although the P5,000 Year-end Incentive Bonus was already included in the Internal Operating Budget for 2004 while the P1,000 rice subsidy was not; it is not correct to say at this time that the P1,000 for rice subsidy was taken from the P5,000 UP Bonus - until such time that the Board of Regents had already decided on our Year-end Incentive Bonus.

Indeed, nobody, not even the UP Central Administration could forecast what would happen within the next 2-3 months especially on our fund releases from the DBM considering the twisted priorities of the government. That is, if in a worst case scenario, the DBM withheld our remaining fund releases for the rest of year. In such case, our accumulated savings so far and income would not be enough to cover our budgetary requirements for the rest of the year.

It is therefore within our hands if we just let those people with twisted minds in government to kept on their "irritating entertainment" and self-serving pursuit rather than serve the interest of the people. Or, we the people, show them the exit door.

Can we count on you? or you will just remain a kibitzer on such scenario?

Hanggang "usi" na lang ba tayo kahit nilulublub na sa putikan ang ating Inang Bayan at ginugutom na ang marami sa ating mga kababayan?

Winston Garcia and the Plunder of GSIS

A welfare agency is supposed to look after its members so its funds must be managed well and spent prudently. However, as alleged by critics, it takes only one abusive, highly paid official to profit from the moneys contributed by underpaid employees, much to the consternation of the supposed beneficiaries.

BY DABET CASTAÑEDA
http://www.bulatlat.com/news/4-35/4-35-garcia.html

This government corporation was established for a good cause but it has now become a symbol of corruption.

The Government Service Insurance System (GSIS) was created by Commonwealth Act No. 186 on November 14, 1936, a year after the inauguration of the Philippine Commonwealth. It was mandated to provide and administer compulsory and optional life insurance, retirement benefits, disability benefits for work-related contingencies and death benefits.

Today, about 1.5 million government employees from various agencies, local government units and government-owned and controlled corporations (GOCCs) are members of the GSIS.

The GSIS’ workforce currently consists of 3,104 employees, 52 percent of whom are in the head office at the Cultural Center of the Philippines (CCP) complex in Pasay City. The remaining 48 percent are in the 48 branches and 78 satellite offices nationwide. They are unionized under the Kapisanan ng mga Manggagawa sa GSIS (KMG or workers union) which has about 800 members in the head office alone.

Lost mandate?

Lawyer Jose Cortes, a former director of the Bureau of Legal Assistance of the Department of Agrarian Reform, told Bulatlat over the weekend that today, the GSIS has almost lost its mandate. “Nakalimutan na ang element of service” (They have already forgotten the element of service.).

Cortes retired in 2000 when he reached the retirement age of 65. He enjoyed medical assistance benefit during the first three years of his retirement. However, since mid-2003, he has not received a single cent of his medical assistance benefit.

He said he has traveled back and forth from his home in Malabon to the GSIS head office in Pasay City to inquire about his reimbursements. “The last time I asked, I was told that there is no fund to pay for my medical needs,” Cortes said.

Lost billions

KMG President Albert Velasco, who is also a lawyer, said in a separate interview with Bulatlat, that the GSIS acquires billions every month from the employees’ mandatory contributions. These contributions, called premiums, should go directly to the trust fund, he explained.

Citing the annual report of the GSIS for 2003, premium payments totaled P40 billion ($710.48 million, based on an exchange rate of P56.30 per US dollar) reported under the social insurance fund.
Velasco alleged that the money is being used by GSIS President and General Manager Winston Garcia for his “personal quirks.”

Documents acquired by the KMG show that Garcia made the following extravagant investments: a P1-billion ($17.76-million) loan to the Public Estates Authority; purchase of a P611.8-million ($10.87-million) property in London to pay for the Philippine Embassy office there; and the purchase of various paintings, among them Juan Luna’s Parisian Life which cost the GSIS P45.4 million ($806,394.32).

In his first 10 months in office, Garcia had cash advances amounting to P5.25 million ($93,250.44).
From September 2003 to July 2004, records showed that Garcia had P6,883,006.63 ($122,255.89) in miscellaneous disbursements.

He approved a P700-million ($12.43 million) computerization project even if, according to the KMG, the same computer functions and programs can be obtained for P40 million ($710,479.57) through the GSIS branches.

Garcia also spends P300,000 ($5,328.60) a month for advertisements while spending another P200,000 ($3,552.40) a month for personal legal assistance.

It is this alleged grave misuse of the government employees’ pension fund that has kept Garcia under fire and it comes as no surprise that there is now a groundswell of support for his ouster.

Garcia has denied all charges and challenged his critics to face him in court. His superior, President Macapagal-Arroyo, has asked the embattled GSIS president to explain and she made assurances that everything will be transparent. Bulatlat