The Senate on Wednesday morning passed the controversial bill seeking to establish a Maharlika Investment Fund (MIF) or the sovereign wealth fund on the third and final reading.
With 19 affirmative votes, Senate Bill No. 2020, or An Act Establishing the Maharlika Investment Fund of 2023 was passed at around 2 AM after 12 hours of debates and discussion for amendments among lawmakers.
Opposition Senator Risa Hontiveros voted against the passing of the bill while Senator Nancy Binay abstained. Minority leader Senator Aquilino ‘Koko’ Pimentel III, Senator Imee Marcos, and Senator Francis 'Chiz' Escudero did not cast their vote as they were not present during the hearing.
The bill was passed a week after President Ferdinand ‘Bongbong’ Marcos Jr. certified the bill as urgent and before Senate will adjourn its session on Friday, June 2.
Among the amendments introduced by lawmakers is the explicit prohibition to source capitalization from the Government Service Insurance System (GSIS), Social Security System (SSS), Philippine Health Insurance (PhilHealth) corporation, Pag-IBIG, Overseas Workers Welfare Administration (OWWA), Philippines Veterans Affairs Office (PVAO) for the MIF.
Under Section 12 of the proposed bill, additional capitalization can be sourced from private and state-owned financial institutions and corporations if approved by the Maharlika Investments Corporation (MIC) board of directors.
Before lawmakers passed the bill, Pimentel made a motion on Tuesday afternoon seeking to move the proposed MIF bill to the Senate Committee on Government Corporations and Public Enterprise for further questioning.
He pointed out that the "origin of the Maharlika Investment fund proposal remains a mystery."
"The most logical question to us is saan ba nanggaling ito? Is it possible that we are doing this as a favor to a businessman who has access to the ears of the powers that be? Whose business has been hit by the downturn of the world economy and thus, needs a new client?," the Senator said.
However, the Senate blocked Pimentel's motion, with 16 Senators objected. Only his fellow Minority leader Hontiveros voted in favor.
The Maharlika Investment Act aims to create a sovereign wealth fund that will be utilized by the national government for investments.
The overall investment returns or the money that will be reaped will be allocated for government programs and long-term projects such as dams, electric grids, and among others.
House Speaker Martin Romualdez introduced the MIF bill in the House on November 28 last year and the lower house approved it on the third and final reading in December.
