MANILA — Former Government Service Insurance System (GSIS) Board Member Jonathan Dela Cruz placed the state-run firm at legal risk following his signing of a memorandum of understanding (MOU) with a certain property development firm MASZ, according to the GSIS Financial Management Group (FMG).
“FMG believes that the MOU between GSIS and MASZ does not give GSIS upside potential, but only potential legal liability risk,” a document from the GSIS said.
Dela Cruz and alleged MASZ chairman Li Li signed the MOU last Aug. 25 for the development of three GSIS properties located in Bonifacio Global City, Makati, and Ortigas central business districts. The total project cost was estimated at PHP7.5 billion.
The FMG also pointed out the MOU will place GSIS at legal risk due to the following conditions: 80 percent MASZ funding compared with 20 percent GSIS funding; guaranteed yet unexplained assistance in dealings with other government agencies regarding the project; full control of MASZ in the project construction; and implied creation of an entity under which GSIS will have ownership of shares through a shareholders agreement.
According to the FMG, an MOU was not necessary to solicit competitive project proposals to GSIS.
It also noted that while the private firm’s Letter of Intent to develop the GSIS properties represented the proponent as MASZ Group SdnBhd with Yan Zhen Qian as the CEO, the MOU signed with Dela Cruz referred to the contracting firm as MASZ Corporations Limited with Li as Chairman.
Through a letter signed by Executive Secretary Salvador Medialdea, President Rodrigo Duterte terminated Dela Cruz’ appointment as a member of the GSIS Board of Trustees (BOT) and ordered him to return all official documents and properties to GSIS.
Dela Cruz was acting in a holdover capacity as a GSIS trustee, since his presidential appointment expired last June 30.
In a letter dated Nov. 23, GSIS Corporate Secretary Enrique Tandan III reiterated to Dela Cruz that the former GSIS trustee and his staff must immediately vacate the previously assigned office and turn over all documents and properties to the agency.
“In view of the termination of your appointment as member of the GSIS BOT, we are constrained to request that you and your staff immediately vacate the office you are occupying in the GSIS Head Office,” Tandan wrote.
“If you would need any assistance in the turnover, please do not hesitate to contact the Office of the Corporate Secretary,” he added. (Juzel Danganan/PNA)
