Diokno pitches presentation of Maharlika in Marcos’ SONA
Finance chief Benjamin Diokno said it would be ideal for President Marcos to present the country’s first sovereign wealth fund, the Maharlika Investment Fund (MIF), during his second State of the Nation Address (SONA) in July, should Congress approve it in the coming months.
The MIF, which has only been taken up in plenary in the Senate, received approval from the Lower House in December last year. Congress is currently in recess.
Diokno expressed hope that the MIF, which seeks to increase investment in infrastructure and help finance the government’s pandemic response, would be given the green light soon.
“Hopefully, it will be taken up for interpolation after the Holy Week. But I can’t dictate the schedule of the Senate,” Diokno said.
Earlier this week, Sen. Mark Villar sponsored the MIF in the plenary session.
Villar said the MIF is designed to catalyze economic development by mobilizing government financial assets that are otherwise limited in use by current legal frameworks.
He maintained that the MIF would expedite the implementation of infrastructure projects related to green and blue projects, countryside development, and other employment-generating projects.
“That (Villar’s) version was a result of a technical working group of which we are a part. So that version we agreed,” Diokno said.
Should both houses pass the bill, Diokno assured that Marcos would not just let it lapse into law.
“The President will not let it lapse into law, he will sign it after studying the provisions. He can mention it in the SONA, that would be an ideal situation,” Diokno said.
The latest form of the MIF will get capitalization from the investible funds of the Land Bank of the Philippines, Development Bank of the Philippines, and dividend remittances of the Bangko Sentral ng Pilipinas.
Other sources remain such as Philippine Amusement and Gaming Corp.’s income, proceeds from privatization and the transfer of assets, royalties and special assessments.
The MIF is expected to adhere to the Santiago Principles, which pertain to the generally accepted principles and practices to ensure the effective operations of sovereign wealth funds globally, and will be governed by the relevant investment and risk management guidelines.
However, the Senate version has removed the exemptions and privileges contained in the originally filed bill. The transactions and assets of the MIF will be subject to local and national taxes.
Further, the MIF will now be governed by the Government Procurement Reform Act and its rules, and shall be subject to the provisions of the GOCC Governance Act.