Senator Risa Hontiveros on Friday, December 2 raised concerns that the proposed Maharlika wealth fund bill is nothing but a revival of the legacy left by the Martial Law dictatorship.

“Makarinig lang ako ng salitang Maharlika, medyo nagkakaheebie-jeebies din ako diyan eh (Just hearing the word Maharlika is giving me the chills). It's part of the legacy of the martial law dictatorship,” Hontiveros said in an interview on The Chiefs.

“Yung myth-making na talagang sinusubukang pigain, to really milk it, nirerehabilitate yung ala-alang iyon (the myth-making that they are really trying to squeeze, to really milk it, rehabilitate that memory), to the detriment of accountability for human rights violations and plunder of the past,” the opposition senator added.

“And speaking of plunder, kasi ang (because the) sovereign wealth fund, hindi naman yun magiging bagong imbensyon sa mundo pero kapag tinitignan natin (it’s not a new invention but if you look at it), sovereign wealth fund, these are state-owned and managed funds, usually sourced from reserves ng isang bansa (of other countries),” Hontiveros said.

And when House lawmakers articulated that the money from Social Security System (SSS), Government Service Insurance System (GSIS) and Pag-Ibig members might be tapped for the so-called sovereign wealth fund, Hontiveros said the government should think twice.

“So wait a little bit, let's talk about that properly and think about it because the pension fund, that is still owned by the members even though it depends on their charters, the pension institutions have this investment,” she said.

“Given very strict rules, IRRs (implementing rules and regulations) laid out in the charter, the state cannot simply own them, because in those pension institutions, they are state funds, yes, but are held in trust by the government for the members, the citizens,” Hontiveros pointed out.

Senator Imee Marcos, President Ferdinand “Bongbong” Marcos Jr.’s sister, for her part said the proposed sovereign wealth fund could suffer the same fate as Malaysia’s 1Malaysia Development Berhad (1MDB) which was hounded by graft issues.

“What happened in their 1MDB was truly a disaster because it downed the whole government and the political party that started in the Republic of Malaysia,” Marcos said in an interview.

“This is really scary so let's think carefully if this is really the right time, if the Philippines is ready for its own sovereign fund now," she added.

Marcos also questioned the timing of the proposal considering the current economic crisis brought about by the COVID-19 pandemic and the government’s unpaid foreign debts and unfunded social programs.

“Is this the right time for one to invest, somehow that’s high-risk? Because the economies around the world is in bad shape,” she pointed out.

Like Hontiveros, Marcos also shared her view it is scary to tinker with the retirement funds of SSS and GSIS members.

Marcos, however, said she agrees that the government must consolidate the capital of government financial institutions and government-owned and controlled corporations (GOCCs).

But this should be used for projects such as dams, which she said, can be used to improve the irrigation of agricultural lands and the generation of power.

Marcos also said she is concerned on who should be managing the funds: “That’s another hot topic.”

Sen. Sherwin Gatchalian, however, said the corruption can be addressed through safeguards.

“What is important is that there are safeguards. We will look into the safeguards under the proposed law, the professional management and of course, the transparency,” Gatchalian said in an interview.

“That’s why in the proposed law, we should install safeguards,” he said.

But in contrast, Gatchalian said he believes the Philippines is prepared for the creation of a sovereign fund.

“We are ready for something like this. What is important is the safeguards and the investment. The funds would be wasted if you don’t properly invest it),” he said. (With Mario Casayuran)