THE Social Security System (SSS) said it holds no shares of online gambling firms and has no plans to add such shares going forward.
“SSS has no investments in the online gaming industry and has no plan of investing in it,” the pension fund said in a statement on Tuesday, adding it is on board with the Department of Finance’s proposal to ban government investment in the industry.
Finance Secretary Ralph G. Recto said the government is considering a formal ban on such investments. Mr. Recto is the ex-officio chairman of the SSS.
The SSS said the online gambling industry “is not part of its investment plans.”
The SSS joins Maharlika Investment Corp. (MIC) in ruling out investing in the online gambling industry.
MIC President and Chief Executive Officer Rafael D. Consing, Jr. reiterated the sovereign wealth fund’s stance against investing in online gambling-related businesses.
“The Maharlika Investment Fund has a firm policy of not investing in businesses related to online gambling. This is not an arbitrary decision but is clearly defined in our board-approved Investment Policy and Risk Management Framework,” Mr. Consing told BusinessWorld on Tuesday.
The other major government pension fund, the Government Service Insurance System (GSIS), has faced questions about its investment in DigiPlus Interactive Corp.
A preventive suspension was imposed on GSIS President and General Manager Jose Arnulfo A. Veloso following questions about whether the DigiPlus investment bypassed the fund’s internal approval process.
Maharlika’s major investments so far include a binding term sheet to provide a $76.4-million bridge loan facility to Makilala Mining Co., Inc., which will fund the early-stage development of the company’s copper-gold project.
Other MIC investments include a 20% stake in listed Synergy Grid & Development Phils., Inc.
“I maintain that each GOCC (government-owned and -controlled corporations) must operate based on the investment guidelines and risk parameters set by its own distinct mandate,” Mr. Consing said, when asked if he’s on board with the investment ban.
“GOCCs are created for different purposes, and their investment strategies should naturally reflect their unique objectives.”
Ateneo Center for Economic Research and Development Director Ser Percival K. Peña-Reyes urged the formal imposition of an investment ban for government firms.
“It would be hypocritical for the government to promote financial literacy and inclusion while having a stake in the gambling business,” Mr. Peña-Reyes told BusinessWorld.
Foundation for Economic Freedom President Calixto V. Chikiamco said the proposed measure is “a reasonable policy but a bit belated.”
The government has so far chosen to seek ways to tax and regulate the industry rather than ban its operations, with Mr. Recto floating a new levy and a requirement that companies list in the Philippine Stock Exchange, Inc. — Aubrey Rose A. Inosante
