The Land Bank Board has approved its P50-billion investment in the Maharlika Investment Corporation as mandated by Republic Act 11954, Finance Secretary Benjamin Diokno said Friday.
Diokno cited the latest developments on the Maharlika Investment Fund that will expedite its operations before the end of the year.
“What’s the latest on the Maharlika Investment Fund? First, even as we speak, the Treasurer of the Philippines, in consultation with the founding GFIs [that is, the Land Bank and the DBP], has started the preparation of the implementing rules and regulations,” he said in a briefing.
Section 54 of Republic Act No. 11954 allows the Treasurer 90 days from the effectivity of the Act to promulgate the IRR. But Diokno confirmed that “we do not intend to use up the 90 days. We expect the promulgation of the IRR to be done before the end of August.”
Diokno also said that the policy-meeting Monetary Board of the Bangko Sentral ng Pilipinas declared on Thursday a dividend of P31.859 billion in favor of the national government. This is based on 50 percent of BSP’s net income, after income tax, in 2022 of P63.731 billion.
“It is reasonable to expect that the Maharlika Investment Fund will be up and running before the end of 2023,” Diokno said.
Last July 18, the Maharlika Investment Fund Act was finally signed into law by the President, a monumental milestone for the present administration.
“As the economic team has underscored over the last few months, the creation of the Fund will provide a credible and attractive platform for local and foreign capital, large global funds, global financial institutions, multilateral partners, and other sovereign wealth funds to directly invest in Philippine ventures and projects,” Diokno said.
In the President’s message during the signing ceremony, he stressed the importance of insulating the Fund from political influence. Thesuccess of the Fund depends on proper governance, prudent risk management, and smart investment strategies by competent and independent financial managers.
Following international best practices, the Secretary of Finance serves as chairman of the board of directors in an ex-officio capacity. This is to provide representation for the government given that the Fund manages government assets.
“Let me make it crystal clear, the Finance Secretary will not manage the Fund. That role is entrusted to the president and CEO of the Maharlika Investment Corporation and its directors,” Diokno said.
The Fund’s funding sources include the Land Bank of the Philippines, the Development Bank of the Philippines, privatization proceeds, the Philippine Amusement and Gaming Corp., and Bangko Sentral ng Pilipinas dividends.
The proposed MIF is an independent fund that adheres to the principles of good governance, transparency, and accountability and shall be sourced from the investible funds of select government financial institutions (GFIs), from contributions of the national government, declared dividends of the BSP and other fund sources.
Under the scheme, the MIF shall be used to invest in strategic and commercial activities in a manner designed to promote fiscal stability for economic development and strengthen the top-performing GFIs through additional investment platforms that will help attain the national government’s priority plans.