GSIS pledges remedial measures following COA audit on P45 billion unpaid service loans

The Government Service Insurance System (GSIS) has addressed recent audit findings by the Commission on Audit (COA), regarding uncollected service loans exceeding P45 billion.

GSIS president and general Manager Wick Veloso expressed the organization’s commitment to adhering to COA’s recommendations and continuously improving its processes.

Veloso highlighted GSIS’s efforts to enhance collection practices, resulting in a significant reduction of total loan receivables. Since 2016, loan receivables have decreased by 39 percent to P42.01 billion in 2023.

In the first four months of 2023 alone, due and demandable loans were reduced by P3.57 billion or 7.83 percent compared to the 2022 balances of P45.58 billion, bringing our April 2023 level down to P42.01 billion

According to Veloso, the substantial reduction in outstanding loans is the outcome of various measures implemented by the pension fund over the years. These include condonation and restructuring programs specifically designed to alleviate borrower debts.

One notable initiative allowed inactive members to repay loans over a three-year period at a 10 percent annual interest rate.

To ensure accuracy and prompt resolution of discrepancies, GSIS has also undertaken extensive reconciliation of loan accounts.

Looking ahead, GSIS plans to engage a third-party collection agency in the coming months.

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