MANILA, Philippines—Two members of the Government Service Insurance System (GSIS) have filed a graft complaint against the state pension fund president, Winston Garcia, in connection with a P25.7-million “exchange deal” he entered into with the state-run television network in 2002.

The complainants—Albin Ganchero, an employee at the Department of Trade and Industry, and Orlando Mutuc of the National Police Commission—said allowing the television station to offset its life and retirement premium dues with advertising airtime was against the law.

In their complaint filed on Sept. 2, Ganchero and Mutuc said the People’s Television Network Inc. (PTNI), a government-owned and -controlled corporation, owed the GSIS a total P47.38 million in salary loans and various insurance premiums.

Of the amount due, P25.68 million was the TV network’s outstanding obligation for life and retirement premiums.

But in a memorandum of agreement sealed in October 2002, the GSIS and PTNI agreed the obligation would be paid off through a “media value package” worth three times the amount.

The complainants pointed out that such a deal was not allowed by law, which dictates that the funds should have been remitted to the social insurance fund to finance the benefits administered by GSIS.

Republic Act No. 8291 also states that GSIS funds shall not be used for other purposes and that “no portion of the funds or income shall accrue to the general fund of the national government and its political subdivisions, instrumentalities and other agencies.”

“The contract entered into by [Garcia] was a patent violation of the act... and manifestly disadvantageous to the government,” the complainants said.

The complaint was the second graft complaint filed against Garcia last week.

Public school teachers had charged Garcia and the GSIS board of trustees with making anomalous cash transfers worth P7.9 billion to the savings account of Consuelo Manansala, GSIS vice president and treasurer in trust of GSIS Properties Inc.