Former senator Franklin Drilon on Wednesday, June 14 warned that the proposed Maharlika Investment Fund (MIF) Act clearly and explicitly prohibits state-run pension and insurance funds from investing in the MIF, as stated by Congress.                                Former senator Franklin Drilon (Senate PRIB Photo)
“In the clear and explicit terms, Congress expressly prohibits the Social Security System (SSS), Government Service Insurance System (GSIS), Philippine Health Insurance Corporation (PhilHealth), Home Development Mutual Fund (Pag-IBIG), Overseas Workers Welfare Administration (OWWA), and Philippine Veteran Affairs Office (PVAO) Pension Fund from investing in the MIF,” Drilon said in a statement. “The intention is crystal clear. Funds held in trust by the government, through these GOCCs, cannot be invested in the MIF,” the former Senate president added. Drilon noted that the prohibition “is absolute and leaves no room for ambiguity,” disagreeing with the statements made by state economic managers suggesting that the SSS, and GSIS may still invest in projects administered by the Maharlika Investment Corporation (MIC). “What the Congress directly prohibits cannot be done indirectly,” he said.
“Let’s avoid making pronouncements that undermine this prohibition and sidestep the intent of Congress,” added the former Senate minority leader. He also stressed that funds held in trust by the government are distinct from the dividends generated by the Bangko Sentral ng Pilipinas (BSP) and other state-owned banks, which serve as major sources of capitalization for the MIF. "It is important to note that the funds held in trust by the government, through these GOCCs, are not of the same nature as the funds of the Bangko Sentral ng Pilipinas and other state-run banks. These funds held in trust are not dividends. They are funds from private contributions,” Drilon said. “The prohibition against state pension funds' investment in the MIF is there precisely to safeguard the integrity of the funds and protect the pension of the retirees,” he said. Both the Senate and House of Representatives have approved the proposed MIF bill which President Ferdinand “Bongbong” Marcos Jr. has certified as urgent. The House adopted the Senate’s version of the measure. However, the measure has yet to reach Malacañang. Senate Majority Leader Joel Villanueva earlier said the final copy of the bill is still being finalized.