by Alexis Tuble, Correspondent
The Government Service Insurance System (GSIS), a major financial institution in the Philippines, is facing mounting public and legislative scrutiny after it was revealed that the state-run pension fund invested over ₱1 billion in DigiPlus Interactive Corp., a digital-first company operating online gambling platforms.
The controversy erupted after Senator Risa Hontiveros delivered a privilege speech on August 5 exposing the investment and questioning its ethical and financial implications. According to Hontiveros, the GSIS purchased DigiPlus shares at a premium price of ₱65.30 per share. Since then, the stock has plummeted to around ₱13.68, resulting in significant paper losses.
“Why is the hard-earned money of our government workers being used to fund an online gambling company — when they themselves are not even allowed to enter casinos?” Hontiveros asked during her Senate address.
The senator emphasized that GSIS members, many of whom are public school teachers, nurses, and civil servants, contribute to the fund expecting stability and protection — not speculative, high-risk investments in morally questionable industries.
Senate to launch investigation
Following the controversy, Senator Erwin Tulfo, chair of the Senate Committee on Games and Amusement, announced that he will spearhead a formal investigation into the GSIS’s investment in DigiPlus. The inquiry aims to determine whether GSIS violated any fiduciary duties or breached existing investment regulations. Tulfo emphasized the need to protect public funds and ensure they are managed with transparency, accountability, and integrity.
The Senate probe will scrutinize the approval process, risk assessments, and ethical considerations behind the investment. It may also pave the way for legislative reforms to restrict pension fund investments in high-risk or socially controversial industries.
Senator Sherwin Gatchalian also voiced concern and called on the Department of Finance (DOF) to conduct a parallel review of the GSIS’s investment policies.
GSIS pledges cooperation amid investment controversy
In response to public criticism, the GSIS has issued a statement expressing its full cooperation with any investigation.
“GSIS remains committed to transparency and good governance. We welcome any inquiry from both Congress and regulatory agencies,” the agency said.
GSIS also assured the public that it maintains a strong financial position, with total assets reaching ₱1.88 trillion, a net operating income of ₱76.82 billion in 2024, and an average return on investment of 6.75% over the last five years.Still, the agency acknowledged the need for introspection, saying it would review its charter and investment policies, particularly concerning high-risk and controversial sectors like gambling.
GSIS faces scrutiny for controversial gambling investment
The GSIS investment in DigiPlus has raised serious concerns, not only due to the stock’s market volatility but also because of the controversial nature of the gambling industry. DigiPlus operates in the iGaming sector, a growing area that has recently come under increased regulatory scrutiny in the Philippines.
In 2024, the government suspended the issuance of new Philippine Offshore Gaming Operator (POGO) licenses and tightened oversight of digital payment platforms and other financial technologies used by digital gaming platforms, citing issues related to money laundering, criminal activity, and social harm.
Experts caution that while gambling companies can offer high financial returns, they also carry significant reputational and ethical risks — especially when public pension funds are involved. Such investments may be viewed as inconsistent with the core mission of institutions like GSIS, which is to safeguard the long-term welfare of government employees.
Critics argue that putting pension money into industries linked to addiction and societal problems undermines public trust and calls into question the standards used in evaluating investment options.
The controversy has prompted renewed calls for stricter safeguards on how public funds are managed, including proposals to ban investments in vice industries. With Senate hearings looming, the GSIS now faces mounting pressure to explain its decision and restore confidence in its stewardship of public funds.
Calls for tighter rules on pension fund investments
Lawmakers are intensifying calls for tighter regulations on how government-managed pension funds, such as those under the Government Service Insurance System (GSIS) and the Social Security System (SSS), invest members’ hard-earned contributions.
Proposed reforms include prohibiting investments in so-called “vice industries” like gambling, alcohol, and tobacco, as well as implementing more rigorous due diligence and transparency requirements for investment decisions made by fund boards.
These proposals come amid mounting public scrutiny over GSIS’s controversial investment moves, which have sparked ethical and legal concerns.
With Senate hearings on the horizon, GSIS leadership faces growing pressure to explain and defend its investment strategy — while reassuring millions of public sector workers that their retirement savings remain protected and responsibly managed.
