The proposed bill seeking to create a Maharlika Investment Fund (MIF) that is being pushed in the lower house has been criticized left and right by the public, several lawmakers, progressive groups, and economists.
But despite the criticisms, President Ferdinand 'Bongbong' Marcos Jr. earlier certified the bill as urgent, and just last Dec. 15, Congress approved it on the third and final reading.
The measure was passed in only 18 days after it was filed by House Speaker Martin Romualdez last Nov. 28.
The co-authors of the bill are the President’s son locos Norte 1st District Rep. Ferdinand Alexander 'Sandro' Marcos; Romualdez’s wife Tingog Sinirangan party-list Rep. Yedda Marie Romualdez; Zamboanga City 2nd District Rep. Manuel Jose Dalipe; Marikina 2nd District Rep. Stella Quimbo; and Tingog Sinirangan party-list Rep. Jude Acidre.
The common questions raised by many are what is the MIF's exact purpose and why do lawmakers hurdle the passage of the measure?
Here’s what we know about the bill, so far:
What is the Maharlika investment fund?
House Bill 6398 or the Maharlika Investment Act aims to create a sovereign wealth fund that will be utilized by the national government for investments.
The overall investment returns or the money that will be reaped will be allocated for government programs and long-term projects such as dams, electric grids, and among others.
In the explanatory note of the bill, the proponents also stated that the passage of the MIF is essential in order to achieve the economic goals of the Marcos administration.
Where will the fund come from?
In the final version of the proposed measure, the fund will extract Php 25 billion from the Development Bank of the Philippines (DBP), Php 50 billion from the Land Bank of the Philippines (LBP), and 100 percent dividends of the Bangko Sentral ng Pilipinas (BSP).
Philippine Gaming and Amusement Corp. (PAGCOR) will share at least 10 percent of its gross gaming revenues.
Originally, the bill's proponents proposed to create Php 250 billion in funds that will be drawn from LBP, DBP, Government Service Insurance System (GSIS), and Social Security System (SSS),
While the additional Php 25 billion will come from the national government.
However, the House decided to remove SSS and GSIS as mandatory contributors after it drew criticism from some groups and the public itself over the use of the public's pension.
Who will govern and manage the fund?
Under HB 6398, it proposed the establishment of a Maharlika Investments Corporation (MIC), an independent corporate body, that will govern and manage the fund.
But to ensure that the fund will be managed properly, several safety measures were adopted from the proposal of Albay 2nd District Rep. Joey Salceda.
He introduced the creation of an independent board of directors, an advisory board, a risk management unit, and a congressional oversight committee of the MIC.
Earlier, President Marcos was designated as chairperson of the MIC board of directors. However, criticism poured from the public which prompted House leaders to amend the bill and remove him from the said posts.
In the finalized version, Finance Secretary Benjamin Diokno will now be the chairperson.
Other board members are the Land Bank president, DBP president, seven members to be nominated by MIF contributors, and four independent directors.
Other safeguards
There will be corresponding penalties for any director, trustee, or officer who “willfully and maliciously violates” investment policies and guidelines set by the MIC board of directors.
A fine of Php 1 million to Php 3 million or not more than six years of imprisonment will be prescribed to anyone who will be proven guilty of violating the guidelines.
The proposed MIF will undergo three layers of audit that will be conducted by the internal auditor, an external auditor, and the Commission on Audit (COA).
