By Macon Ramos-Araneta
Senator Win Gatchalian on Tuesday said the privatization of key government assets is a more logical source of funds for the Maharlika Investment Fund (MIF) as this would shield key financial institutions from potential risks and unforeseen challenges.
“Privatization is actually a model used in some of the sovereign wealth funds. Proceeds from oil and gas and other resources are all from privatization,” Gatchalian said.
He added that annual proceeds from the privatization of government assets could become a regular source of additional capital for the MIF.
The government generated proceeds of P657 million in 2016; P832 million in 2017; P15.656 billion in 2018; P881 million in 2019; P474 million in 2020 and P320 million in 2021.
He also believes Privatization seems to be less controversial and more logical because the assets being sold now can be enjoyed by future generations by investing in infrastructure and other things.
“We must put that on the table for the body to study,” said Gatchalian.
The senator’s comments came in the wake of the statement by Bankers Association of the Philippines president Antonio Moncupa, Jr. that generating MIF capital from fund sources that contribute to government coffers could become problematic.
Moncupa said tapping government financial institutions like the Land Bank of the Philippines, the Development Bank of the Philippines, and even the Bangko Sentral ng Pilipinas could either result in a wider budget deficit or reduced social services that could hamper the country’s future economic growth.