The House Committee on Banks and Financial Intermediaries on Thursday approved the proposed bill seeking to create a Php 250-billion sovereign wealth fund called Maharlika investment fund (MIF).
The panel approved House Bill 6398, a week after it was filed by principal author House Speaker Martin Romualdez.
In the explanatory note of the bill, Romualdez said the creation of MIF will “improve investment opportunities, promote productivity-enhancing investments and ensure that the Philippines becomes an investment destination.”
He said the measure is essential to meet the objectives outlined in the eight-point socioeconomic agenda and medium-term fiscal framework of President Ferdinand ‘Bongbong’ Marcos Jr.
Under the proposed measure, the investment funds will be drawn from four government financial institutions.
About Php 125 billion will come from the Government Service Insurance System (GSIS), Php 25 million from the Development Bank of the Philippines (DBP), and Php 50 billion from the Social Security System (SSS) and Land Bank of the Philippines (Land Bank).
Safeguard measures
The House panel adopted several amendments proposed in the bill by the technical working group (TWG) led by its chairman Albay 2nd District Rep. Joey Salceda.
Salceda introduced several safeguards to ensure that the MIF is governed and utilized properly.
Among the safeguards he introduced are the creation board of directors, an advisory board, a risk management unit, and a congressional oversight committee of the Maharlika Investment Corp.
Marcos is designated as the chair of the board and the head.
To ensure transparency, Salceda also proposed that an annual report will be disclosed to stakeholders.
The proposed MIF will undergo three layers of audit including an internal auditor, an external auditor, and the Commission on Audit, he said.
"Only the government financial institutions' infusions in preferred shares and convertible debt instruments are government guaranteed. The GFIs are fully owned by the national government, making the government guarantee "self-contained,” Salceda said in a statement.
