Finance Secretary Benjamin Diokno on Tuesday, May 30, said that it is up to the boards of directors of state pension institutions, such as the Social Security System (SSS) and Government Service Insurance System (GSIS), to invest in the proposed Maharlika Investment Fund (MIF). Finance Secretary Benjamin Diokno (File photo/MANILA BULLETIN) The official said he doesn’t want to “preclude” the decision of the boards when asked if it would be okay for the GSIS and SSS to invest in the sovereign wealth fund. “I'm not saying that. We don't want to preclude the board(s). That's a board decision, 'di ba (right)?," Diokno told Palace reporters. “Kasi katulad ng SSS ang trabaho niya to make sure na iyong kino-contribute dun sa pension system ay napapalago nya, di ba? Bakit mo naman sya irerestrict dun sa Treasury Bill pero sure nga 'yun? (Like with SSS, its job is to make sure that it grows what it contributes to the pension system, right? Why would you restrict it to the Treasury Bill but that is sure?),” he asked. The controversial MIF, which initially sought to pool capital from government pension funds and state-owned banks, is currently being deliberated in Senate. The Fund would finance national development projects and other assets, but it is facing widespread criticism from the opposition and public backlash because of the lack of safety nets that could endanger the pensioners’ fund. The Finance chief also allayed fears that GSIS and SSS board members are all presidential appointees, and could possibly have a conflict of interest in deciding on the investment scheme certified as urgent by President Ferdinand “Bongbong” Marcos Jr. himself. “It's a decision of the board, kaya nga may mga board, 'di ba (that’s why there is a board, right)? While they are presidential appointees, they act in the best interest of the company," Diokno said. "In an organization like the SSS or GSIS, they have what's called allocation sa portfolio. Meron 10 percent dito sa high risk pero high return. Meron naman sigurado na ganito, no risk, high return. Desisyon 'yun ng kanilang risk committee, they assess (in the portfolio. There is 10 percent for high risk but high return. There is sure like this, no risk, high return. That’s the decision of their risk committee, they assess)," he added. Senator Risa Hontiveros earlier raised concern on what she called a “backdoor provision” in the proposed MIF Bill. The provision stated that “other government financial institutions government-owned and -controlled corporations may invest into the MIF, subject to their respective investment and risk management strategies and approval of their respective boards.” SSS and GSIS are both government-owned and -controlled corporations (GOCCs). In the original version of the bill, the GSIS and SSS had to contribute P125 billion and P50 billion to the fund, respectively. The revised version would only require seed funding from the Land Bank of the Philippines, Development Bank of the Philippines (DBP), and Bangko Sentral ng Pilipinas (BSP). There would also be a Maharlika Investment Corp. (MIC) board of directors, which Diokno would chair if the revised bill is approved during his term as finance secretary.