House Committee on Banks and Financial Intermediaries chairperson Irwin Tieng (File photo)
MANILA – A House leader on Tuesday said the proposed multi-billion peso Maharlika Investment Fund would be a good investment vehicle to pursue big ticket infrastructure projects.
In a Laging Handa public briefing, House Committee on Banks and Financial Intermediaries chairperson Irwin Tieng said government resources could be optimized through infrastructure financing, as it would entail high-yielding financial undertakings and assets.
"With this Maharlika Investment Fund, it’s one vehicle na puwede pong mag-invest sa mga ganito, at iyong kita ay sa atin din mapupunta. At hindi lang iyon, makakadagdag po iyon ng trabaho sa atin. So ang layunin po ng ating Maharlika Investment Fund ay magkaroon ng pondo/ipon na puwede nating i-invest at kumita and at the same time ay makatulong po sa ating bayan pagdating po sa development ng mga infrastructure natin (This Maharlika Investment Fund is one vehicle wherein we could invest in these [infrastructure projects], and the revenues would also go to us. Not only that, this would also create more jobs. So the goal of the Maharlika Investment Fund is to have funds/savings that we could use to invest and earn. And at the same time, this would also help the country in terms of infrastructure development)," he said.
Aside from infrastructure projects, Tieng said another feature of the bill is the earmarking of 20 percent of MIF profits for social welfare programs.
"Kasi alam naman natin po na itong Maharlika Investment Fund, at the end of the day ay kikita naman po at makikinabang ang lahat – tayo as Filipino (We all know that at the end of the day, every Filipino would benefit from this Maharlika Investment Fund)," he said.
He said the MIF would be under the supervision of the Philippine Competition Commission (PCC) in order to put in place a check and balance system.
"Kasi nakita naman natin na itong Maharlika Investment Fund natin ay baka mag-invest siya sa mga kumpanya at sa mga infrastructure project sa ating bayan. So tinanggal natin iyong exemption doon para iyong komisyon na ito, mai-check din niya iyong balance para fair po pagdating po sa pagpipili kung sino mananalo at kung puwede ba magsama ang isang kumpaniya para nandiyan pa rin po iyong check and balances natin (We saw that the Maharlika Investment Fund would be used to invest in companies and infrastructure projects in the country. So we removed the exemption of the MIF from being covered by this commission, so that it could ensure balance and fairness in reviewing deals. This would uphold the system of checks and balances)," he said.
Tieng also maintained there are several safeguards embodied in the MIF to ensure its transparency and accountability, including penal provisions and a 15-member board selected according to strict criteria of knowledge and professional experience in investment management and financial matters.
"So, tingin ko po, iyong mga safeguards are in place. Pati po iyong sa qualifications po ng magiging board of directors natin, nilagay po din natin diyan na kailangan may 10 years of experience sa banking and finance (I think the safeguards are in place. We also indicated the qualifications of our potential board of directors such as having 10 years of experience in banking and finance)," he said.
In the latest iteration of the proposed bill creating the MIF, its initial capitalization was cut by more than half to just PHP110 billion from PHP275 billion after the House leadership dropped the Social Security System, Government Service Insurance System and the national budget from its fund sources.
The President of the Philippines was also replaced by the Secretary of Finance as head of the MIF Corporation's governing board.
House Bill 6398, introduced on Nov. 28, seeks to establish a Philippine sovereign wealth fund patterned after the successful sovereign wealth funds all over the world.
It aims to ensure economic growth by generating consistent and stable investment returns with appropriate risk limits to preserve and enhance long-term value of the fund; obtaining the best absolute return and achievable financial gains on its investments; and satisfying the requirements of liquidity, safety/security and yield to ensure profitability of the government financial institutions’ respective funds. (PNA)
