Rafael Consing Jr., the newly appointed president and chief executive officer of the Maharlika Investment Corp. (MIC), defended the revised implementing rules and regulations (IRR) of the Maharlika Investment Fund (MIF), insisting that “flexibility” must be assured to create its audit and risk management committees.

Rafael Consing Jr. (Photo from the Presidential Communications Office)

“The Revised MIC IRR grants the Board the flexibility to determine the optimal composition, qualifications, and reporting requirements of the MIC's Audit Committee and Risk Management Committee,” the official said in a statement released by Malacañang.

This, he added, would ensure that the MIC would follow its goal of implementing a “world-class corporate governance framework that prioritizes the interests of investors and the public.”

Consing, who is currently the executive director of the Office of the Presidential Adviser on Investment and Economic Affairs (OPAIEA), advised against the former IRR’s rule that two senior executives from the MIC would serve on the audit committee.

“Including senior executives on the Audit Committee raises the risk that investors and the public may perceive the committee as being biased towards management and could undermine the committee's independence and credibility,” he explained.

His statement came after ACT-Teachers Partylist Rep. France Castro sounded the alarm on the revised MIC IRR, saying it has “dangerous" provisions and lacks “thorough scrutiny.”

She questioned the new provision that gives the President increased authority to select the board of directors of the MIC, which would manage the fund.

Castro, a member of the Makabayan bloc in Congress, also pointed out that the new IRR lowers the educational and professional experience requirements for key position in the MIC.

In the revised IRR, there is no mention of the qualifications for regular and independent directors. The former IRR indicated that one of the criteria was a master's degree in finance, economics, business administration, or a related field.

Consing, however, said that the revised IRR is “not the appropriate forum for outlining specific rules on board risk management oversight.”

“If the Revised MIC IRR outlines specific rules on board risk management oversight, it could restrict the flexibility of the first set of incoming Board of Directors of MIC to develop a risk management system that is best suited for the company,” he added.

Consing was appointed by President Marcos as the new president and CEO of the Maharlika Investment Corp.

Prior to his in government service, he held key positions in the private sector, including in the International Container Terminal Services Inc., HSBC Hong Kong and HSBC Singapore, and Aboitiz & Co. Inc. and Aboitiz Equity Ventures Inc.