In its annual audit report on GSIS for 2022, state auditors said the biggest unpaid loan of P600 million was granted to the firm it only named as “Company 1”.GSIS records showed that the P600 million loan was approved on December 10, 1997. The said loan was payable in five years at an interest rate of 18 percent per annum, compounded monthly.
“Records disclosed that the borrower was in default in paying the loan hence, in 2003, GSIS foreclosed some of the properties …which were used as security/collateral,” COA said. In addition, COA said the P35.504 million proceeds from the sale of 71 lots in a Cavite subdivision sold for have been remitted in full to the GSIS.
The second biggest borrower with a P353.987 million loan was Company 3, also identified by the COA as a property developer.