STATE-RUN Land Bank of the Philippines (LandBank) said Friday it has remitted to the Bureau of the Treasury (BTr) its ₱50-billion contribution to the Maharlika Investment Corporation (MIC) as mandated by Republic Act No. 11954, which establishes the Maharlika Investment Fund (MIF).
The MIF is the first Philippine sovereign wealth fund aimed at boosting the country’s economic growth.
Finance Secretary and LandBank chairman Benjamin Diokno said that the bank’s ₱50-billion investment in the MIF has already been settled with
the BTr on Thursday, Sept. 14, 2023, following the enactment of the MIF enabling law and the issuance of its implementing rules and
regulations by the BTr.
“We are witnessing a growing interest in investments in the MIF from multilateral financial institutions and foreign investors. With the
regulatory requirements in place, and after securing the seed capital from state-run institutions, we are confident that the Fund will be
operational by yearend,” Diokno said in a statement.
LandBank president and chief executive Lynette Ortiz said the law creating the MIF has enough safeguards to protect the bank’s invested
funds.
“The MIF law has put in place adequate safety nets to ensure full disclosure and transparency in the management of the Fund, as well as
the integrity and professionalism of the management team that will be entrusted to lead the Maharlika Investment Corporation,” Ortiz said.
On July 18, 2023, President Ferdinand Marcos, Jr. signed into law Republic Act No. 11954, followed by the BTr’s issuance of the guidelines a month later on Aug. 28, 2023.
The law authorizes LandBank and the national government to provide ₱50 billion each as initial fund capital, while the Development Bank of
the Philippines will contribute another ₱25 billion.
Earlier, Diokno said there was a need for highly competent individuals manning the Maharlika Investment Fund to ensure its success.
He said the deadline for nominations and applications for the Maharlika Investment Corporation board of directors was set on September 27, 2023.
He said following the promulgation and publishing of the IRR, the government should then ensure that the Fund would be managed by highly
competent personnel with a good track record and outstanding integrity.
“Thus, the President and the CEO of the MIC, as well as the members of the Board of Directors shall be finalized and appointed. Key
management officials will also be decided upon after the composition of the Board has been settled,” Diokno said.