GSIS spurs local economy in CDO; releases P819-M in loans from Jan-May '09
Cagayan de Oro City (25 June) -- The Government Service Insurance System has disbursed a total of P819 million loans to its members and pensioners covered by the Cagayan de Oro regional office during the first five months of the year, as the pension fund continues to fuel the local economy through its various loan products.
Of this amount, P787.5 million in proceeds came from loans applied through the GSIS Wireless Automated Processing System (G-W@PS) kiosk.
Among the loan products that are available through the G-W@PS include the Consolidated Loan (ConsoLoan), the P10,000-Cash Advance Plus (eCAP), Emergency Loan, Optional Policy Loan, and Policy Loan.
The ConsoLOan provided the biggest amount of proceeds during the period at P540.1 million.
On the other hand, P31.2 million in proceeds came from loans applied over the counter (OTC).
Among the loan products available through OTC include ConsoLOan, Optional Policy Loan, Policy Loan, and Pension Loan.
Pension Loan generated the biggest amount of proceeds at P7.1 million.
Loan proceeds disbursed in the Mindanao area totaled P3.5 billion during the five-month period.
GSIS President and General Manager Winston F. Garcia said through the loans it disburses to its members and pensioners, the pension fund helps fuel economic growth in the region, either directly or indirectly.
"When our members apply for loans, they usually use the money either for big purchases, to pay for another loan or to start a business. Whichever the case may be, the money eventually finds itself back to the market," he said.
Mr. Garcia added that the pension fund continues to provide service to its members and pensioners in Tuguegarao despite the adverse effects of the defective IBM-DB2 software to the GSIS's operations.
Even at the onset of the DB-2 system crashes in March, the GSIS never ceased disbursing monthly pension benefits to its pensioners through their eCard Plus. In addition, the G-W@PS kiosks continue to facilitate the enrollment and activation of eCards.
Loan applications may be done over-the-counter during the times the kiosks are down although admittedly processing of loans will still take some time.
In the meantime, Mr. Garcia assures all GSIS members and pensioners that the integrity of all membership data has not been compromised and no data is lost. For every step of a process, records are preserved and kept in perpetual storage.
On June 3, the GSIS filed a civil case against IBM Corp., IBM Philippines, and IBM business partner Questronix Corp. as it asked the court to order these companies to pay the GSIS P100 million in damages.
The 18-page complaint filed before the Pasay Regional Trial Court was an action for tort and breach of contract to hold the defendants liable for the damage caused by the defective software it licensed to the GSIS.
Tort law defines what constitutes a legal injury and establishes the circumstance under which one may be held liable to another's injury.
The case stemmed from IBM's database management software, called the IBM DB2, whose defect resulted in intermittent crashes in the GSIS system that paralyzed its operations.
Meanwhile, the GSIS Cagayan De Oro Regional Office has processed P234 million in retirement claims for January to May; P16.7 million for survivorship claims; P73 million for regular life claims; and P11 million for optional life claims.
As of end-May 2009, the GSIS Cagayan de Oro Regional Office, which has under its jurisdiction the Iligan Branch Office and Malaybalay Satellite Office, covers a total of 67,273 active members, 10,165 old-age pensioners, survivorship pensioners, and 753 government offices. (GSIS PR) [top]