Solicitor General Menardo Guevarra (File photo)
MANILA – Solicitor General Menardo Guevarra on Wednesday said state lawyers would continue preparing to defend the Maharlika Investment Fund (MIF) law before the Supreme Court (SC), despite President Ferdinand R. Marcos Jr.'s order to suspend its implementation.
“We have not officially received a copy of the SC’s resolution, but we have been preparing our comment since the court’s resolution appeared in the SC website," Guevarra said in a message to reporters.
He said it is up to the petitioners if they wish to withdraw their petition following the halt to the law's implementation.
"But if they don’t, and the SC does not suspend the proceedings either, the OSG (Office of the Solicitor General) will be prepared to submit its comment on the validity of the MIF law,” he added.
In July, Marcos signed into law Republic Act 11954 or the MIF providing for the creation of a sovereign wealth fund aimed at enhancing investment capital by serving as a long-term source of investment capital, to promote economic growth and job creation through infrastructure development such as roads, bridges, and airports, improving connectivity and making the country more attractive to investors.
The MIF marks the Philippines' inaugural sovereign wealth fund and will be allocated across a diverse range of assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, commercial real estate, and infrastructure projects with strict prohibitions against investments in gambling, tobacco, or alcohol production.
Suspension within executive discretion
Albay Rep. Joey Salceda said the suspension of the MIF before its full implementation is well within the Chief Executive’s discretion and was appropriate to ensure that the IRR would anticipate and address future issues.
"That is the President’s exercise of executive discretion well within his power. The letter of the law will still be followed without exception. But the IRR should anticipate future issues. If he sees issues in executive branch’s IRR draft, he can resolve them. Better to do so before full implementation," Salceda said on Wednesday.
Salceda, who chairs the House Committee on Ways and Means, said he would provide advice to the executive branch on the legislative intent of the MIF.
However, he said the government is still on track to "get the ball rolling" on the MIF by the end of the year.
"Don’t overthink this. It’s the executive branch working things among themselves, as is proper at this stage of the law’s implementation," he added.
Salceda said he also expects "very direct investments" in development projects in 2024 with the possible enactment of the Public Private Partnership Code this year. (with a report from Filane Mikee Cervantes/PNA)
