MANILA, Philippines -- The Government Service Insurance System (GSIS) said the agreement it entered into with People’s Television Network Inc. (PTNI) to offset the latter’s P25.68-million life and retirement premium dues did not violate the Civil Code.

GSIS chief legal counsel Estrella Elamparo said there was nothing illegal about the memorandum of agreement the GSIS entered into with PTNI which operates the National Broadcasting Network Channel 4, in 2002.

“Offsetting is a recognized mode of payment under the Civil Code and under our charter,” Elamparo said in a statement.

Elamparo was reacting to the report two GSIS members had filed a complaint with the Ombudsman, charging that the “exchange deal” forged by GSIS president Winston Garcia and the TV network was illegal.

According to Elamparo, the Civil Code describes payment as “not only the delivery of money but also the performance, in any other manner, of an obligation.”

As part of its agreement with the GSIS to pay off its life and retirement premium dues, PTNI agreed to broadcast “GSIS Members’ Hour,” over NBN-4 every Friday night.

The talk show, which aimed to enlighten the public on various concerns affecting the state pension fund, was awarded the Anak TV Seal in 2005 and 2007 by the Southeast Asia Foundation for Children and Television (SEAFCTV).

The program aired for 2004 until early 2008, when it was replaced by infomercials also about the different programs and policies of the GSIS.

On another graft charge filed by school teachers last week who claimed the GSIS transferred funds to the “personal account” of the GSIS treasurer, Elamparo said, “That’s not true at all.”

She said the “money was deposited in the trust account of the GSIS with the treasurer as signatory.”

Elamparo said the graft complaints were harassment against Garcia, who has challenged the Lopez family for control of Manila Electric Co.