MIF IN NEED OF ‘IRON-CLAD’ PROVISION

Calling the Marharlika Investment Fund “very financially unsound and dangerous,” a senator raises concerns about the security of pensions

SENATE Minority Leader Aquilino “Koko” Pimentel III has raised the need for an “iron-clad” provision in the Maharlika Investment Fund (MIF) bill that will ensure the protection of pension funds from being touched or compromised.

The lawmaker said on Tuesday, May 30, 2023, that the pensioners’ hard-earned funds would be touched for the MIF “is still very much alive” and it should be prevented at all costs.

“While they removed the forced contribution from GSIS (Government Service Insurance System) and SSS (Social Security System), the current version of MIF under consideration by the Senate would allow these social insurance institutions to invest in Maharlika voluntarily as long as their boards agree,” Pimentel said.

“Such provisions within the MIF bill raise serious concerns about the safety and security of our pension system. We should provide an iron-clad provision to shield pensions from this very financially unsound and dangerous undertaking called Maharlika Investment Fund. Hindi pwedeng pilitin. Hindi pwedeng hingan. Pero kung kusa at boluntaryong magbibigay, tatanggapin naman (It cannot be forced. It cannot be demanded. But if given willingly and voluntarily, it will be accepted),” he added.

Pimentel described the bill as “unsalvageable and beyond repair.”

He argued that creating an investment fund with a price tag of P500 billion would require the government to divert resources from more immediate priorities, such as addressing poverty, hunger, education gaps, joblessness, healthcare deficiencies and the country’s ballooning debt.

As of end-February this year, the country’s national debt stood at P13.75 trillion.

In earlier versions of the measure, the GSIS and the SSS were identified as sources for the initial capital of the MIF.

However, this provision was later removed due to significant backlash, even from GSIS and SSS executives.

In November 2022, House Speaker Martin Romualdez, with the backing of President Ferdinand “Bongbong” Marcos Jr., filed House Bill 6398, which seeks the creation of the MIF, stating that it will maximize the profitability of investible government assets for the benefit of all Filipinos.

The House of Representatives passed its version of the measure on Dec. 15, just 17 days after it was filed.

Last week, Marcos certified the Senate version of the bill as urgent, citing the compelling need for a sustainable national investment fund that will accelerate the implementation of strategic and high-impact large infrastructure projects to stimulate economic activity and development.

This certification will expedite the bill’s passage, allowing the Senate to approve it on the second and third readings on the same day, instead of three days apart.

Senate President Juan Miguel Zubiri said the plan is to approve Senate Bill 2020, or the MIF Bill, on the second and third readings this week.