New SSS Chair

the Duterte Administration for some key government agencies and state-run firms are coming in slowly, but—make no mistake about it—they do come in surely. Biz Buzz learned that another important appointment was made late last week involving one of the largest government financial institutions.

We’re talking about none other than the Social Security System, which, although not a government owned agency per se (it is owned by the members and pensioners from the private sector), is “government-administered” by law.

According to our sources, Malacanang has chosen constitutionalist and University of the East Law dean Amado Valdez to be the new SSS Chair.

Any doubts as to the importance of this appointment can be dispelled by taking one look at the financial reports of the pension fund. It manages close to P500 billion worth of investments and assets composed of monthly contributions from close to 34 million private sector workers. That’s a lot of money and a heavy responsibility. And it’s a burden Valdez is prepared to bear given his extensive background in the legal profession, augmented by a master’s degree in business economics from the University of Asia and the Pacific. He is also part of the Divina Law office as an “of counsel”, meaning he works with the firm but is not a partner.

Previous to this appointment, Valdez hasn’t been known to be close to the Duterte camp, but he did file a petition in late 2015 to have then presidential candidate (and frontrunner) Grace Poe disqualified from the race, which was eventually thrown out by the Supreme Court. (Incidentally, Divina Law senior partner Estrella “Star” Elamparo also filed a separate disqualification case against Poe in 2015.)

In any case, Valdez will have his hands full at the SSS as the fund is once more under pressure from populist lawmakers to raise benefits to its members – something that must be balanced with fiscal prudence that is necessary to prolong the life of the pension fund’s financial asset.