Maharlika Fund OK sans gov't pension funds, says NEDA
By Raymund Antonio and Raymund Antonio
Published Jun 3, 2023 03:02 am
The controversial Maharlika Investment Fund (MIF) would not be hindered by the absolute prohibition of access to the state pension funds, National Economic Development Authority (NEDA) Secretary Arsenio Balisacan said.
NEDA Secretary Arsenio Balisacan (Photo from the Presidential Communications Office)
At a Palace press briefing on Friday, June 2, the official downplayed concerns that the intentions of the Maharlika fund would be adversely affected by the prohibition of using state pension funds.
He also believed that President Ferdinand “Bongbong” Marcos Jr. would sign the controversial bill, which was passed recently in the Senate, since he certified its passage as “urgent.”
“You know, the President certified the passage of the Maharlika. And, I think that the amendments or the improvement of the final provisions, we can leave it to the House. They are in general quite good provisions, especially those that improved the governance of Maharlika, the safeguards and so on,” he said.
“Those are very useful, at least from my point of view, in clarifying what cannot be used and what can be used. I think those are good. I don’t see those as kind of a roadblock to achieving the intention or the objective of the Maharlika,” Balisacan added.
The original version of the bill would include contributions from state pension funds Social Security System (SSS) and Government Service Insurance System (GSIS), but the provision was struck down in the Senate version of the bill after public backlash.
The President himself assured that the government has no intention of accessing the said funds as seed capital for the sovereign wealth fund, if he signs it to law.
However, Finance Secretary Benjamin Diokno said it would still be up to the board of directors of the pension institutions to decide if they would invest into the proposed MIF.
The official, in his capacity as finance chief, stands to become the chairperson of the Maharlika Investment Corporation (MIC).
Senator Risa Hontiveros 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 (P50 billion), Development Bank of the Philippines (P25 billion), and national government (P50 billion).
The Fund aims to finance national development projects and other assets, but it is facing widespread criticism from the opposition and the general public because of the lack of safety nets.
NEDA Secretary Arsenio Balisacan (Photo from the Presidential Communications Office)
At a Palace press briefing on Friday, June 2, the official downplayed concerns that the intentions of the Maharlika fund would be adversely affected by the prohibition of using state pension funds.
He also believed that President Ferdinand “Bongbong” Marcos Jr. would sign the controversial bill, which was passed recently in the Senate, since he certified its passage as “urgent.”
“You know, the President certified the passage of the Maharlika. And, I think that the amendments or the improvement of the final provisions, we can leave it to the House. They are in general quite good provisions, especially those that improved the governance of Maharlika, the safeguards and so on,” he said.
“Those are very useful, at least from my point of view, in clarifying what cannot be used and what can be used. I think those are good. I don’t see those as kind of a roadblock to achieving the intention or the objective of the Maharlika,” Balisacan added.
The original version of the bill would include contributions from state pension funds Social Security System (SSS) and Government Service Insurance System (GSIS), but the provision was struck down in the Senate version of the bill after public backlash.
The President himself assured that the government has no intention of accessing the said funds as seed capital for the sovereign wealth fund, if he signs it to law.
However, Finance Secretary Benjamin Diokno said it would still be up to the board of directors of the pension institutions to decide if they would invest into the proposed MIF.
The official, in his capacity as finance chief, stands to become the chairperson of the Maharlika Investment Corporation (MIC).
Senator Risa Hontiveros 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 (P50 billion), Development Bank of the Philippines (P25 billion), and national government (P50 billion).
The Fund aims to finance national development projects and other assets, but it is facing widespread criticism from the opposition and the general public because of the lack of safety nets.