Maharlika safeguards in place, says nat'l treasurer
Published Jun 24, 2023 11:42 pm
National Treasurer Rosalia de Leon assured the public that the government had adequate safety nets to ensure the Maharlika Investment Fund (MIF) would be transparent and not mismanaged.
*Bureau of the Treasury (file photo)*
Citing De Leon's interview with the media, the Presidential Communications Office (PCO), the MIF would have Congress oversight and internal and external auditors. The Maharlika Investment Corporation (MIC) must also submit financial reports. Social security institutions such as the Social Security System (SSS), Government Service Insurance System (GSIS), and the Philippine Health Insurance Corporation (PhilHealth) are prohibited from investing in the fund and the MIC. "Iyon po ang talagang nailagay po rin dito sa provision dito sa Senado (That's the provision they included in the Senate)," De Leon said, noting that the MIF will invest in sustainable endeavors. The National Treasurer said other safeguards in the law regarding the use of MIF include a regular audit to look into the financial performance of the MIF. The Joint Oversight Committee of the Congress' upper and lower houses would have seven members each to ensure the MIC's and MIF's viability and financial performance. De Leon also pointed out that the country's government financial institutions (GFIs) have ample resources to support the MIF. “Nakita po natin na ang Landbank and Development Bank of the Philippines, mayroon din po silang mga investible funds (We saw that the Landbank has investible funds). They have P1.3 trillion in investible funds," she said. "Ang ini-infuse lang po nila dito sa Maharlika is P50 billion (They only put in P50 billion in the Maharlika). So that's just roughly three percent," she noted. De Leon added that even the Development Bank of the Philippines invested only P25 billion of its P850 billion worth of investible funds. She cited that even countries with no current account surplus, such as Indonesia, India, and Vietnam, have established their so-called sovereign wealth funds to strengthen and support their priority development projects. "Indonesia, like the Philippines, is also operating on a fiscal deficit – nag-contribute po ng $2 billion ang government of Indonesia to set up iyon pong si INA (Indonesia Investment Authority) at nag-transfer rin po siya ng mga assets worth $3 billion (The Indonesian Government contributed $2 billion to set up the INA and transferred assets worth $3 billion)," De Leon said. During the deliberations in Congress, President Marcos certified the MIF as "urgent." The MIF is a sovereign wealth fund that will be used to invest in a wide range of assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, commercial real estate, and infrastructure projects. It is also a vehicle for economic growth, aligned with the Medium-Term Fiscal Framework and 8-point Socio-Economic Agenda of the Marcos administration.
*Bureau of the Treasury (file photo)*
Citing De Leon's interview with the media, the Presidential Communications Office (PCO), the MIF would have Congress oversight and internal and external auditors. The Maharlika Investment Corporation (MIC) must also submit financial reports. Social security institutions such as the Social Security System (SSS), Government Service Insurance System (GSIS), and the Philippine Health Insurance Corporation (PhilHealth) are prohibited from investing in the fund and the MIC. "Iyon po ang talagang nailagay po rin dito sa provision dito sa Senado (That's the provision they included in the Senate)," De Leon said, noting that the MIF will invest in sustainable endeavors. The National Treasurer said other safeguards in the law regarding the use of MIF include a regular audit to look into the financial performance of the MIF. The Joint Oversight Committee of the Congress' upper and lower houses would have seven members each to ensure the MIC's and MIF's viability and financial performance. De Leon also pointed out that the country's government financial institutions (GFIs) have ample resources to support the MIF. “Nakita po natin na ang Landbank and Development Bank of the Philippines, mayroon din po silang mga investible funds (We saw that the Landbank has investible funds). They have P1.3 trillion in investible funds," she said. "Ang ini-infuse lang po nila dito sa Maharlika is P50 billion (They only put in P50 billion in the Maharlika). So that's just roughly three percent," she noted. De Leon added that even the Development Bank of the Philippines invested only P25 billion of its P850 billion worth of investible funds. She cited that even countries with no current account surplus, such as Indonesia, India, and Vietnam, have established their so-called sovereign wealth funds to strengthen and support their priority development projects. "Indonesia, like the Philippines, is also operating on a fiscal deficit – nag-contribute po ng $2 billion ang government of Indonesia to set up iyon pong si INA (Indonesia Investment Authority) at nag-transfer rin po siya ng mga assets worth $3 billion (The Indonesian Government contributed $2 billion to set up the INA and transferred assets worth $3 billion)," De Leon said. During the deliberations in Congress, President Marcos certified the MIF as "urgent." The MIF is a sovereign wealth fund that will be used to invest in a wide range of assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, commercial real estate, and infrastructure projects. It is also a vehicle for economic growth, aligned with the Medium-Term Fiscal Framework and 8-point Socio-Economic Agenda of the Marcos administration.