FVR had no hand in SSS housing investments
Philippine Daily Inquirer
First Posted 01:44:00 07/21/2008
MANILA, Philippines - We refer to the column of Honesto General in the July 16, 2008 issue of the Inquirer, particularly to the statement “Past presidents have wrought havoc on the SSS. For example, Fidel Ramos ordered the SSS to provide funds for his flagship project to build 1,200,000 low-cost housing units.”
It is unfortunate that General did not do his bit of homework; either he merely relied on a source who misled him or upon his memory which obviously did not serve him right. In any case, please allow us to clarify and provide the correct information on the matter:
1. Under the Social Security Act of 1997 (RA 8282), the SSS is mandated to invest in housing for its members, an amount not to exceed 35 percent of its reserve funds. Clearly the SSS’ authority to provide funds for housing emanates from the law and is exercised by its ruling body, which is the Social Security Commission (SSC). A presidential directive is therefore neither necessary nor appropriate.
2. Under the Unified Housing Loan Program, the SSS grants long-term loans to the National Home Mortgage Finance Corp. (NHMFC) and Home Development Mutual Fund (Pag-Ibig Fund), both government housing financial institutions, for on-lending to SSS members for housing. In these and all other instances, it is the SSC that exercises full power and authority to evaluate and approve loans and investments.
3. We checked and verified the facts with Rene Valencia, former SSS administrator, during whose watch the SSS had some of its best years in terms of financial management and profitability of investments. He confirmed that FVR never ordered the SSS to provide funds for the alleged low-cost housing project; that the SSS strictly observed the 35 percent limit on all investments in housing; and that during the Ramos administration, SSS term loans to NHMFC and Pag-Ibig Fund were current and up to date.
—NICK A. LAGUSTAN,
spokesman,
Office of Fidel V. Ramos,
Makati City
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