DOF stands by legality of revised Maharlika IRR
At A Glance
- The Department of Finance (DOF) said the revisions to the implementing rules and regulations (IRR) for the Maharlika Investment Fund (MIF) act are within the bounds of the law.<br>DOF said the newly revised IRR aims to establish a strong corporate governance framework for the Maharlika Investment Corp. (MIC).<br>The DOF welcomes and fully supports the revised IRR for the MIF that focuses on maintaining the independence of the MIC's Board of Directors.<br>The regulations grant the MIC flexibility in establishing oversight and risk management bodies while upholding high standards of fund management.<br>Lawmakers have raised concerns about "dangerous" provisions and a lack of thorough scrutiny in the IRR.<br>The revised IRR allows Malacañang to reject recommendations from the Advisory Board for the appointment of directors or the CEO of the MIC.<br>The revised IRR does not specify qualifications for regular and independent directors, unlike the previous rules.<br>The DOF expresses confidence that the MIC will be operational by the end of the year.<br>The finalized IRR is seen as a significant step towards establishing a well-structured and effective sovereign wealth fund to drive long-term growth in the Philippines.
The Department of Finance (DOF) said on Monday, Nov. 13, that the revisions introduced to the implementing rules and regulations (IRR) for the Maharlika Investment Fund (MIF) act are within the bounds of the law.
In a statement, the DOF affirmed the legality of the newly revised IRR for the establishment of the Maharlika Investment Corp. (MIC), emphasizing that these rules will create a strong corporate governance framework for the fund.
“The Department of Finance (DOF) welcomes and fully supports the revised Implementing Rules and Regulations (IRR) of the Maharlika Investment Fund (MIF) Act,” the DOF said.
“The enhancements introduced by the IRR are all within the bounds of the law, meant to give full meaning to the establishment of a strong corporate governance structure,” it added.
In particular, the agency highlighted the IRR’s focus on maintaining the independence of the Board of Directors of the MIC.
The DOF stated that these regulations grant the MIC greater flexibility in establishing reliable oversight and risk management bodies, while upholding the highest standards of efficient fund management.
However, concerns have been raised by lawmakers, citing IRR’s "dangerous" provisions and a lack of thorough scrutiny. Of particular concern is the provision that grants an extended authority to the president over the MIC.
The revised IRR grants Malacañang the power to reject the recommendations made by the Advisory Board for the appointment of directors or the chief executive officer of the MIC.
Furthermore, the revised IRR does not specify the qualifications required for regular and independent directors, unlike the previous rules, which stated that one of the criteria would be a master's degree in finance, economics, business administration, or a related field.
Notwithstanding the criticisms, the DOF expressed confidence that the MIC will be operational by the end of this year.
“[It] effectively paves the way for the full operationalization of a well-structured, robust, and effective sovereign wealth fund that will advance the Philippines’ long-term growth,” the DOF said.
“Its finalization [also] comes at an opportune time as investors, both local and international, have signified in several investor promotion engagements their robust interest in the country’s first-ever sovereign wealth fund,” it concluded.