The Bureau of the Treasury is set to disburse the P75 billion seed capital to the Maharlika Investment Corp. (MIC) sourced from the Land Bank of the Philippines and the Development Bank of the Philippines (DBP).

This decision comes following the approval by the MIC Board, chaired by Finance Secretary Ralph G. Recto, for the transfer of funds from the account of the Treasury to the MIC's designated depository banks. 

"The BTr [Treasury] shall transfer the contributions to the account of MIC within five (5) business days from receipt of the relevant Board Resolution,” the Department of Finance (DOF) said in a statement on Sunday, Jan. 28.

To recall, the Landbank and DBP remitted last September their entire contributions, amounting to P50 billion and P25 billion, respectively, to the Treasury for safekeeping as part of the Maharlika Investment Fund (MIF).

Republic Act No. 11954, which created the MIF, mandates Landbank and DBP to contribute to the fund's initial capital of P125 billion, a portion of its authorized capital stock of P500 billion.

The remaining P50 billion will be sourced from the national government, primarily from dividends declared by the Bangko Sentral ng Pilipinas (BSP).

According to the DOF, the MIC Board has also designated Landbank and DBP as the depository banks for the fund.

“[This] is consistent with Department of Finance (DOF) Department Circular No. 002.2022 stating that GOCCs [government owned and controlled corporations] may deposit and maintain government funds with the LBP and DBP without the need for prior approval from the Secretary of Finance,” the DOF said.

Last Friday, Recto has presided over the second board meeting of the MIC in his capacity as new chairperson to discuss its strategic direction.

The MIC serves as the sole vehicle responsible for mobilizing and utilizing the MIF for investments in transactions aimed at generating optimal returns on investments (ROIs).

The MIC’s role is to establish a diversified portfolio of investments in the local and global financial markets and in other assets that promote the commercial as well as developmental and strategic objectives of the Fund.

The Board approved MIC President and CEO (PCEO) Rafael Jose D. Consing, Jr. to continue discussions with stakeholders regarding potential investments.

The third MIC board meeting is scheduled sometime in February, following the Secretariat’s consultation on the availability of the Board of Directors.