State Insurance Fund Employee Rep Requests Audit of GDB Deposits
SAN JUAN – The president of the State Insurance Fund Corp.’s (SIF) Management Employee Federation, Juan Osorio Flores, publicly asked the board of the public corporation to assess the risk in having money and investments with the Government Development Bank (GDB)
“Following the serious situation that is the GDB’s lack of liquidity or publicly reported solvency, it is necessary that no later than next Monday a team of experts assess the risk of the funds and the more than $445 million the SIF invested in the GDB,” Osorio said in a statement Saturday.
The fund bought short- and medium-term notes that provided cash for the government to operate.
The labor leader added that, this week, “we have been warning that the allocated funds to address the pensions of Puerto Rico’s injured, whom the SIF helps, are in serious danger if the bank goes into receivership. The SIF must be sure these funds exist or, otherwise, have been used without the consent of our board of directors.
“The board of directors must protect the funds intended to meet the pensions of injured workers. There is great concern regarding the analysis we have done, enough to warn the injured who receive life pensions from the SIF,” he said.
The leader of the fund’s management employees said it is “mobilization to address these claims is urgent in order to avoid catastrophe in the corporation, whose duty it is to care for injured workers. The resources we had were donated to the government, there is not much money left. We have to save the investments or, otherwise, the next to go bankrupt will be the SIF.”
Officials said Friday that GDB’s liquidity is about $700 million and denied the bank is being shuttered.