After several months of hearing all types of allegations being hurled from various interested publics, these allegations against the System remain as such - allegations. But these charges are already being unfairly equated with mismanagement and worse, of widespread corruption or so called scams. 

Our detractors, who are usually gifted with 20/20 hindsight, have been quick to conclude that our forays and bad investments in real estate have caused the financial problems of RSBS. But the truth of the matter is that no one doing legitimate business in the country was really spared from the crisis that severely hit, not only the real estate sector and the stock market but most other industries as well. It is a fact that many government financial institutions and even the most progressive companies are also reeling from the damaging effects of the regional Asian crisis that is currently fast becoming a global phenomenon. But it seems that RSBS is being singled out as though we are the only institution that is suffering from this crisis. 

It is crucial to reverse this wayward trend of continuously picturing RSBS as a corrupt agency of government without any regard for the interests of the soldiers. It is not only threatening the soldiers' confidence on the System's ability to provide long-term financial security for them and their families but it also imperils their very own security .  

These adverse developments do not only undermine the stability that this multi-billion financial bastion has been nurturing and protecting for the past two decades, but more importantly, these derogatory efforts will, in the end, only ultimately impair the same financial security that we have been establishing for the soldiers' future. 

Behind all these allegations of poor judgement in investing the soldiers' pension fund in real estate is twenty-one years of uninterrupted fund growth with an annual average increase of 24 %. With only P200 Million as seed capital from the government and our members 5% contribution, RSBS has managed to grow beyond its financial limitations. By yearend 1997, total fund equity has grown to almost P10 Billion while total assets have reached P15.6 Billion.  

RSBS has for two decades, bravely and solely carried this immense responsibility of trying to establish a responsive and self-sufficient pension fund that would ensure the continuous payment of our soldiers' quality retirement benefits. As based on the pension fund concept, real estate investments in the past have enabled the System to surpass its actuarial targets and conformed with our thrust of capital appreciation which traditional modes of investments alone will not be capable of achieving.  

Opting for low-risk, low-return modes of investment in the past would have been a less problematic or vulnerable investment posture but our soldiers' fund equity would not have grown as much, and would have just reached P 6 to P 7 Billion which is a far cry from the actual figures posted. The aggressive investment stance of RSBS was an enabling mechanism or means by which RSBS would have the accelerated and long-term capability to meet the demanding fund requirements of an attractive AFP retirement plan. Moreover, recent news reports that RSBS management have forgotten our mission is false as it is unfair. On the contrary, it is precisely because of RSBS' desire to accelerate the build-up of the soldiers' funds and the attainment of its noble mission as a funding support that we are ceaselessly inspired and driven to achieve more for the ultimate benefit of the Filipino soldiers.  

Acceptably, the magnitude of the current economic crisis has affected the income performance of the System. However, RSBS' current liquidity problems should not be construed as insolvency nor be unfairly equated with the allegations on the probity of its past leadership and management. The glorious history of RSBS speaks of the worthiness of our investments and of our well-meaning efforts. The current investigations on any wrongdoing in the System should be isolated from the performance, credibility and integrity of the institution, as a whole. The sustained convoluted misinformation of the public discrediting RSBS will, in the process, be only paid at the expense of our soldier-members.  

As President of RSBS and as a soldier, I expressly denounce this undeserved and misconstrued public misinformation about the soldiers' institution. RSBS as an institution is proud of its beginnings and its achievements. Amidst the difficult business environment and challenges that face us all, we are confident that RSBS will remain resilient and stable. The soldiers pension fund and the soldiers do not deserve these contortions that threaten to erase the System's glorious past and affect their bright future.  

(SGD) LT GEN ISMAEL Z VILLAREAL  
President  

Press Release Source:  
RSBS Corporate Affairs Department (Fax 912-2644)  
c/o MR TIRSO G SERRANO 
Assistant Vice President/ Head  
Email:[email protected] 

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