State-run Maharlika Investment Corp. (MIC) admitted that it is encountering difficulties in complying with the Governance Commission for government-owned and controlled corporations (GCG).

Rafael D. Consing Jr., MIC president and chief executive officer, disclosed that the oversight body for state-owned companies needs more specific guidelines for startups, such as the newly established sovereign wealth fund.

“We basically follow all the rules in terms of setting up the organization, et al., [but] if you look at the rules, ma'am, the reality is that they're really not prepared to accept or assist startup institutions,” Consing said during a recent Senate hearing.

Although Consing noted that the GCG has been "very helpful" in assisting MIC, he stressed that the agency's support is constrained by the current rules.

“If you look at the regulations today, the nearest that it would be for startup institutions is for reorganization. So they've got rules for reorganization, but they have no rules for startups,” he said.

Earlier reports said that MIC was struggling with its organizational structure and staffing issues. Finance Secretary Ralph G. Recto even said that the private sector representatives on the board have not earned "a single centavo" since being appointed last year.

Consing said that, currently, MIC has just nine employees, which includes its executives and board members.

Despite facing challenges with its organizational structure, the MIC chief said that they would make their first investments in the energy sector within the next 60 to 90 days.

Currently, the MIC have eight memoranda of agreements in place, and due diligence is being conducted on two major investments, Consing said.

Energy is a primary focus for the sovereign wealth fund, which is expected to account for a substantial portion of its early investments.

Maharlika aims to raise $1 billion to invest in renewable and alternative energy sources to diversify the power mix and stabilize prices.

Since its establishment, Consing said the fund has generated about P1.5 billion in interest income.

In 2023, the MIC had about P144 million retained earnings after starting investments in November, with an additional P1.4 billion accrued this year.

MIC has an authorized capital stock of P500 billion, with an initial capital of P125 billion sourced from contributions by the Land Bank of the Philippines (P50 billion), the Development Bank of the Philippines (P25 billion), and the National Government (P50 billion).