The Governance Commission for GOCCs, the central advisory, oversight, and monitoring body for government-owned and -controlled corporations, has backed the establishment of the Maharlika Investment Fund.
In its position paper on Senate Bill 1670, the GCG pushed for the creation of a Maharlika Investment Corporation, which is envisioned to be an independent corporate body under the proposed bill. The MIC is intended to govern and manage the proposed state investment fund.
The Governance Commission said the MIC bears the attributes of a GOCC, such as its charter, functions relating to public needs, and state ownership.
The GCG also said that since funding from government financial institutions and GOCCs may affect their respective investment strategies and performance scorecards, the proposed investments to the MIC must necessarily be within and allowed by their respective charters.
“Ultimately, the Governance Commission is one with Congress and lauds its efforts to ensure the country’s economic transformation, growth, and sustainability,” GCG said.
“The GCG, therefore, supports the inclusion of the provision in SB No. 1670 providing at least 25 percent of the net profits of the MIC to families living below the poverty threshold,” it added.
GCG’s comments were submitted to the Senate Committee on Banks, Financial Institutions, and Currencies on Jan. 30, 2023.
House Bill No. 6608, or the Maharlika Investment Fund Act, was approved on third and final reading by the House of Representatives on Dec. 15, 2022.
Senate Bill No. 1670 was filed on Jan. 12, 2023, which serves as the counterpart bill for the measure approved by the House.
Earlier, Finance Secretary Benjamin Diokno assured that the country’s gross international reserves will not be touched for the funding of the proposed Maharlika Investment Fund.
Diokno said at least $5 billion (about P270 billion) could be available for the initial funding of the MIF. He said there was no need to depend on the dividends from GOCCs.
Under the proposal, Bangko Sentral ng Pilipinas will pay 100 percent of its dividends to the MIF while state-run financial institutions Land Bank of the Philippines and Development Bank of the Philippines will contribute P50 billion and P25 billion, respectively.