Senator Risa Hontiveros expressed her conformity with the cancellation of the implementation of the Maharlika Investment Fund (MIF), saying it is a "welcome news for all Filipinos."
"The decision to suspend the implementation of the Maharlika Investment Fund (MIF) Act is welcome news for all Filipinos and for our vulnerable economy," Hontiveros said in a statement.
"I hope that the suspension of the rollout of the Maharlika Investment Fund means that the President is starting to heed our warnings," she added.
Under RA 11954, inked by President Ferdinand Marcos Jr. on July 18, the MIF is established to optimize national funds by generating returns to support the Marcos administration's economic goals laid out in the Medium-Term Fiscal Framework, the 8-Point Socioeconomic Agenda, and the Philippine Development Plan 2023–2028.
Marcos on Wednesday suspended the implementing rules and regulations of the MIF through a memorandum signed by Executive Secretary Lucas Bersamin in coordination with the LBP and DBP.
According to Hontiveros, many provisions of the MIF Act require further study.
"My own view, of course is that it is beyond repair - because the law was rushed, and the Philippines is simply not ready at this moment to support a wealth fund," the senator said.
Meanwhile, Hontiveros recalled the previous statement of Finance Secretary Benjamin Diokno that the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (LBP) had excess funds that were idle and could be used for the MIF, which, according to her, has misled the Senate.
"At best, he simply did not have the competence to understand the repercussions of messing with the finances of Land Bank and DBP. Dati pa naman siyang BSP Governor," said Hontiveros.
The defect of MIF, according to the senator, is now poised to reduce the LBP and DBP's capacity to provide loans for farmers, fishermen, and agri-entrepreneurs by more than P700 billion, or ten times the capital that will be taken from them.
"As it turns out, the Bangko Sentral’s position is that DBP and Land Bank will need to be recapitalized. Saan kukunin yan? E di uutangin," she said.
"The suspension of the MIF Act must stand until every flaw or concern raised about the law has been reviewed. Government should never be reckless with the people's hard-earned money," the senator remarked.
