Safeguard funds, outgoing SSS head calls on members

July 10, 2008

BY JIMMY CALAPATI - OUTGOING Social Security System president Corazon de la Paz yesterday called on the fund members and public to be vigilant in safeguarding the pension funds but had some kind words for incoming SSS president Romulo Neri.

“I know him for quite some time though I’m not very close and I know him to be very intelligent. He had better knowledge and experience to plan for our country’s future. Neri has what it takes to be a good SSS president,” she said.

But she did say that her resistance to proposals to use SSS funds for programs not defined in the SSS charter may have rubbed people the wrong way.

De la Paz appealed to the public to give Neri a chance to serve the SSS. But she acknowledged it would be hard to erase the public perception on the many controversies that hounded Neri.

“Di natin maalis sa isip ng mga tao yan but as for me I don’t want to prejudge anyone. I know Chairman Neri knows the sentiment of the people,” she added.

Neri was a key witness in the $329-million national broadband deal with China’s ZTE Corp but invoked executive privilege when asked by senators about his discussions with President Arroyo when he informed her of the P200 million bribe of then Comelec chair Benjamin Abalos in exchange for his approval of the contract. His decision was upheld by the Supreme Court.

De la Paz belied talks that with Neri taking over the pension fund, the administration would use SSS as a “milking cow” in the 2010 presidential election.

She said that the SSS board is highly competent, knowledgeable and would not allow itself to be used.

“I am not worried about that. I’ve seen them disapprove proposals that did not pass the SSS standards,” she said.

De la Paz said she blocked intentions of some quarters to use SSS members’ funds for the government’s pro-poor agenda.

“What I was saying was that it’s not included in the (SSS) charter. Using the funds has limits,” she said.

She said that SSS funds cannot be used to finance pro-poor projects of the government “unless it is defined in the charter.” The SSS is a government-controlled financial institution.

De la Paz, who oversees the private fund that administers the pensions of at least 800,000 members, said she had to “make a stand.”

She added that her decision may have been received negatively by some people.

“Any time you’re in a position like this you go through decisions that others might not like,” she said though she refused to name names.

The pension fund has 27 million members nationwide.

Dela Paz joined the SSS in August 2001 as its first woman president and the 14th person entrusted with the responsibility of overseeing the operations of an institution that has a crucial role in the lives of workers in the private sector.

At the time, SSS funds were projected to last only until 2015, based on a 1999 actuarial valuation.

Earlier, opposition Senators Francis Joseph Escudero and Mar Roxas hquestioned Neri’s appointment to the SSS.

Bayan Muna party list Rep. Teodoro Casiño called his appointment a “gift” from Malacañang for his continued silence regarding the botched $329 million NBN contract with China ’s ZTE Corporation.

Neri has said that criticisms to his appointment were unfair saying he did not ask for the job and would rather go back to his old job at the National Economic Development Authority.

POLITICS IN HER RESIGNATION

De la Paz reiterated that there was politics involved in her resignation, which will take effect on July 31.

“I said of course there will always be politics (in government), (especially) if you’re actions offended some people,” she said.

Asked to specify what she meant by politics, De la Paz cited the economic crisis being experienced by poor Filipinos.

“There are problems in our country that need to be dealt with funds,” De la Paz said, adding that she was asked if SSS funds could be used to address the problem.

De la Paz clarified that politics was only one of the small reasons for her resignation. She said her spinal condition has become a hindrance to the performance of her duties.

VOUCHING FOR HIMSELF

Neri, outgoing Higher Education acting chairman, said it is not the first time he faced criticisms on his appointment.

“I remember when I was appointed by the President to DBM (Department of Budget and Management). I remember Secretary Butch Abad said putting me in DBM is like putting Dracula in the blood bank, but I think I performed decently in DBM and there were no such Dracula in a blood bank phenomenon that occurred in the DBM,” he added.

Neri said his critics are free to check his records and how he performed when he headed the National Economic and Development Authority, DBM, and CHED.

“I think I’m qualified for the new position. I’m an MBA graduate from UCLA, major in finance, international business and my background has also been finance. I teach finance, operate finance at AIM investment banking, pension fund management and other areas of finance including financial derivatives,” he said.

Neri said he has already talked to De la Paz and would meet her on Monday so he could be briefed on SSS operations.

He said he is also working on the framework on the national welfare program where an initial draft had been submitted to President Arroyo Thursday afternoon.

WISDOM IN GMA’S DECISION

Neri said Dela Paz performed well in the SSS, describing her as a “professional” who is “very much respected” in business circles.

He, however, said he believes there is wisdom in the President’s decision to appoint him.

“There are new challenges now on social welfare because the household incomes and expenditures are being put under severe pressure. We have to find out how best to put the proper safety nets for our people, for our households,” he said.

Neri allayed fears of possible misuse of SSS funds under his helm, believing that employees of the SSS are very active who would “not let shenanigans happen.”

GIVE NERI A CHANCE

SSS commissioners Sergio Ortiz Luis Jr. and Donald Dee called on critics to give Neri a chance to prove himself.

Dee, president of the Philippine Chamber of Commerce and Industries, said accusations against Neri are unfounded and any fears of SSS funds being misused are misplaced.

“The decision of the SSS is a collegial decision, hindi isang tao lang ang nagde-decide. I can assure you, having experienced in the past six years, the commissioners of SSS will never agree and that has been proven time and again,” he said.

Ortiz, president of the Employees Confederation of the Philippines, said most of the comments against Neri are “political in nature” and “he is not a political person, so I think we should give him a chance.”

The House of Representatives was divided on Neri’s appointment.

“His expertise is business and economy which makes him very much qualified to head the SSS. He should be given a chance to prove his worth,” Manila Rep. Bienvenido Abante said.

“Neri has nothing to prove as he assumes office at the SSS. What he has to pursue is his mandate to perform his duty as chair of SSS for the welfare of its members,” said Marikina Rep. Marcelino Teodoro.

“Neri is even over qualified for any government job. All you need to look at are his credentials. Those who say otherwise are biased or emotional or both,” said House Speaker Prospero Nograles.

NO MORAL AUTHORITY

Rep. Liza Maza (Gabriela) said “Neri has no moral authority to oversee the P251 billion of assets owned by SSS members and billions of GSIS funds, with his propensity of putting the President’s interest above the nation’s in the unresolved ZTE-NBN controversy.”

Rep. Rafael Mariano (Anakpawis) said Neri “may be academically fit and competent but his involvement in scandals has made him politically and morally ineligible to the post.”

Militant groups also opposed Neri’s appointment.

Kilusang Mayo Uno said it’s payback time for Malacañang to Neri, a juicy position for having tolerated the corrupt practices of the Arroyo couple by keeping his mouth shut.

Pamalakaya said Neri’s appointment smelled foul just like the national broadband deal. – With Ashzel Hachero, Jocelyn Montemayor, Peter Tabingo, Dennis Gadil and Randy Nobleza

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