Aboveboard and conducted with due diligence

This is to clarify the item “Fishy bank sale” (Biz Buzz, 9/28/15).

For the record, we would like to assure you that the evaluation of the credentials of Phindep Development Corp. in the negotiated sale of the Government Service Insurance System’s shares in the GSIS Family Bank (GFB) was aboveboard and conducted with due diligence.

The invitation to submit proposals was published in the GSIS website and opened to all interested entities. The procedures and requirements of the sale were all spelled out.

Phindep was the lone offeror and was able to comply with all the documentary and other requirements, including the certification from the private minority stockholders on the sale pursuant to a court order.

The GSIS investment bids and awards committee conducted an evaluation of the documents submitted by Phindep in accordance with the published guidelines for the cash sale of its shares.

Right after the evaluation, we endorsed the Phindep documents to the Bangko Sentral ng Pilipinas to evaluate its capability to operate a thrift bank, as the BSP has the exclusive

authority and expertise to assess such capability. And it was for this reason that the sale did not push through. BSP’s evaluation revealed that Phindep does not possess the qualifications required by BSP to operate a bank such as the GFB.

Thus, last Sept. 4, the GSIS declared a failure of negotiated sale; last Sept. 11, it published another invitation to all interested parties to offer proposals on the negotiated sale of GSIS shares in GFB.

—MARGIE A. JORILLO, vice president, Government Service Insurance System