MANILA, Philippines--"Don't use us in a proxy war."

This was the appeal of the Confederation for Unity, Recognition and Advancement of Government Employees (Courage) as it assailed the Government Service Insurance System for using its members as "pawns" in the GSIS attempt to take over Manila Electric Co.

At a press conference, Courage president Fernando Gaite pointed out that government employees were the "collective owners" of GSIS, and that GSIS chairman Winston Garcia had no right to stake their pension fund in his "posturing" against Meralco.

Gaite said GSIS members were concerned about the effect of Malaca&ntlde;ang's attacks on the Meralco shares the GSIS owned.

He said that in just a few months, the price of Meralco shares had gone down, resulting in a loss of about P1.4 billion to the government employees and other members of GSIS.

Big Meralco losses also GSIS'

Gaite recalled that Garcia decided to buy high at P80.91 per share in January 2008.

"With the current depressed value at P70 per share, the losses represent a significant amount which could have been best put to use for an increase in the members' dividends or another loan facility," he said.

Gaite said that despite the further plummeting of Meralco shares, Garcia announced his plans to buy more to obtain majority control of Meralco.

"Whose interest is Garcia referring to protect? The members were never consulted on where the GSIS would invest their money, especially in speculative investments like the stock market and the $1 billion investments abroad which are now the subject of a congressional inquiry," Gaite said.

'Don't get used'

In a statement, GSIS spokesperson Estrella Elamparo urged Courage: "Don't get used by Meralco."

She denied that the GSIS retirement fund had been depleted, pointing out that this was separate from the pension agency's "ever-growing investment fund." She said that the law authorizes GSIS to invest in corporations and shares of stock.

"The ever-increasing investible funds of the GSIS is proof of how well managed and sacred GSIS funds are under its present management," Elamparo said.

'Despicable' record

The GSIS owns 23 percent of the total 33-percent shares (including the Social Security System and Development Bank of the Philippines shares) owned by the national government in Meralco. Garcia sits as a Meralco board member.

Gaite said no GSIS member "would honestly believe" that Garcia was only looking after the GSIS' interests.

"His despicable record as GSIS president and general manager speaks for itself and his close affiliation with President Macapagal-Arroyo and the First Gentleman betrays his intention," he said.

"Garcia is acting at the behest of the Palace to wrest control of Meralco whose sister company in the broadcasting industry is perceived to be critical of the Arroyos. He acts as if he owns our pension fund, putting it at stake in this obvious political ploy to serve the interest of President Arroyo," Gaite said.

Palace cronies

He said that the moves against Meralco were possibly meant to favor the cronies of Ms Arroyo, such as the Aboitizes who are involved in power generation and the Razons who are now into power transmission.

"Corruption or a commission cannot be far behind. We have reason to believe that they are deliberately bringing down the stocks for these cronies to buy low and acquire a monopoly in the power industry. Garcia has favored the Aboitizes once, with the transfer of the GSIS fund from LandBank to the Aboitizes' own Union Bank," Gaite said.

Santi Dasmarinas, Courage secretary general, said it was "dumbfounding" that Garcia would flaunt efficiency and high salary issues against Meralco when at GSIS, Garcia, the board of trustees and executives were being accused of the same.