President Ferdinand Marcos Jr. addressed worries the public has voiced about the new source of income supporting politicians’ lavish lifestyles.
Marcos on Tuesday, July 18 signed Republic Act 11954 establishing the Maharlika Investment Fund (MIF) amid opposition from experts, lawmakers and other concerned Filipinos about some of its provisions.
RELATED: Maharlika Investment Fund: What it is and how it can affect Filipinos
This development came in at least seven months since it was proposed in the House of Representatives through House Bill 6398 in December last year.
Marcos certified its passage as “urgent” early this year, prompting swift ratification at the Senate.
Its Senate version or Senate Bill No. 2020 received 19 affirmative votes, one negative vote, and one abstention.
READ: Who voted for it? Senators’ positions as Maharlika bill gets approved
Following the ceremonial signing, the keywords “Maharlika Investment Fund,” “the MIF” and other related words trended on Twitter Philippines.
On transparency, integrity
In his speech during the ceremony, Marcos said he is aware of the opposing views about this new legislation back when it was still deliberated in Congress.
Marcos chuckled at these statements, saying they are “far from the truth.”
“I would hear some people commenting and say ‘Hindi ba kung may pera tayong ganyan, dapat ilagay yan sa agrikultura, dapat ilagay yan sa infrastructure, dapat ilagay yan sa energy development, eh nanonood ako ng television sabi ko… syempre kinakausap ko yung TV, saan niyo kaya iniisip na ilalagay yan?” Marcos said.
“Bibili kami ng magagarang kotse, bibili kami ng malalaking yacht, yan ba ang iniisip ninyo? It makes me laugh because that is so far from the truth,” he added.
The money, instead, will be invested in “critical sectors” of the economy, according to Marcos.
“All those critical sectors that have been left behind, all those critical sectors that have to adjust to the new economy, to the new global economy, those are the pressure points that we will apply the fund only,” he said.
To further quell fears, the chief executive assured utmost transparency and integrity of the “personnel” in charge of the MIF.
“I assure you that the funds will be managed by highly competent personnel with a good track record and outstanding integrity. We remain steadfast in our commitment to transparency, accountability and good governance in this massive and purposeful undertaking,” Marcos said.
The MIF through the Maharlika Investment Corporation (MIC) was pitched to lawmakers to supposedly help the government generate more income for economic growth and development.
The MIC is expected to garner at least P75 billion in paid-up capital this year wherein the sourcing is:
- P50 billion from the Land Bank of the Philippines
- P25 billion from the Development Bank of the Philippines
- P50 from the national government, comprising dividends of the Bangko Sentral ng Pilipinas (BSP)
READ: Amid calls to abandon Maharlika dream, Marcos signs investment fund into law
Recap of the public’s fears and concerns
The public’s fears and concerns stemmed from the funding sources of the government’s investment system.
Filipinos were specifically worried that the government will borrow their hard-earned savings in their social securities for ambiguous and sketchy projects.
RELATED: What is ‘Maharlika Investment Fund’ bill?
Marcos earlier assured them that the government will not use state pensions as “seed money” for MIF.
Legal experts also raised eyebrows about the nature of the MIF being presented as a sovereign wealth fund (SWF), citing the country’s budget deficit.
An SWF is an investment fund that governments from wealthy nations own and runs.
RELATED: Sovereign vs investment fund: Chel Diokno weighs in on Maharlika Investment bill
