Give Maharlika Fund a chance–lawmaker
AKEY ally of President Ferdinand R. Marcos Jr. is appealing to that the proposed Maharlika Investment Fund (MIF) Act be given a chance after the Chief executive certified House Bill (HB) 6608 as an urgent measure last week.
A statement issued by his office quoted Camarines Sur Rep. Luis Raymund F. Villafuerte as saying that he believes the bill would mobilize savings that would augment funds for government’s big-ticket infrastructure projects and the state’s other priority programs.
Villafuerte said the “enormous spending” by the Duterte government on Covid-response has given the Marcos administration limited fiscal space. This, hence, prompted him to seek support to the Presidential backing of HB 6608. The lawmaker also said the public should wait for Congress to hammer out what Marcos described as the “perfect” version of the sovereign fund.
HB 6608 was passed on third reading (by a 279-6 vote in Congress) before lawmakers went on holiday beginning December 17 until January 22, 2023.
“The President has said that it was his idea regarding the MIF, and that our people should give it a try and let the Congress come up with a bill acceptable to the people and with the proper safeguards,” said Villafuerte, who is majority leader of the Commission on Appointments (CA), at a CA hearing.
Full support
THE CA held a session on the designation of erstwhile University of the Philippines (UP) Economics Professor Arsenio M. Balisacan as directorgeneral of the National Economic and Development Authority (Neda).
Villafuerte, who is also president of the National Unity Party (NUP)— the second biggest power bloc in the House of Representatives—asked Balisacan whether he supported the proposed MIF.
Balisacan, who was awaiting confirmation as Socioeconomic Planning Secretary, said “We are in full support, Your Honor.”
“In fact, the recent statement read by Secretary Ben(jamin) Diokno was a joint statement among us in the cabinet and economic team. So that’s an expression of our full commitment,” said Balisacan, who first served as Neda chief during the administration of the late President Benigno S. Aquino III.
In that joint statement mentioned by Balisacan, the President’s economic team led by Diokno said they expect the MIF to boost investments and funding of infrastructure projects, particularly in agriculture, to move forward the Marcos administration’s “Agenda for Prosperity.”
At the CA panel hearing, Villafuerte told Balisacan: “I think we should give it (MIF) a try. When the President said we should give it a try, we are all up for it. There’s no harm in trying as long as the proper safeguards are there. At the end of the day, it’s up to the Congress to really come out with a good measure.”
Potentials
BALISACAN said at the CA hearing that it was his “personal view” that “the laws that Congress pass are good or bad depending on how you (lawmakers) make it, and governance is key to that.” “But the governance framework that you put into the law, that’s what makes it workable or not workable. I think that for Congress to allow us to debate the merits or demerits of the proposal and put the appropriate assurance that it [proposed MIF} will work.”
For the Neda chief, the proposed MIF “has the potential of attracting funds …that otherwise is not used in a way that addresses the immediate concerns and priorities for national development.”
“That fund could supplement the limited fiscal resources that we have. For example, it could be used to improve the attractiveness of PPP [public-private partnership] projects, particularly for critical areas like infrastructure,” Balisacan added.
Villafuerte said after the CA hearing that Marcos was spot on in asking the people to wait for the final version of the MIF bill to be drawn up by both chambers, “considering that the MIF will still go through refinements after HB 6608 is transmitted to the Senate.”
“At the Senate, it will again go through further tweaking before the final, consolidated measure is hammered out at the bicam [bicameral] negotiations before being ratified by both Houses and then submitted to Malacañang for the President’s signing into law,” he added.
Changes, amendments
VILLAFUERTE said the initial reservations over the bill’s certain features, such as the use of state-run pension funds and the Fund’s board chairmanship by the President, were quickly addressed with the major changes or amendments made at the House committee level.
Under the House-approved version, he said the initial investment will come only from the investible funds of the Land Bank of the Philippines (Landbank) and Development Bank of the Philippines (DBP), gaming revenues of the Philippine Amusement and Gaming Corp. (PAGCOR) and other state-run gaming operators and dividends of the Bangko Sentral ng Pilipinas (BSP).
Villafuerte said that investments from the proposed MIF will also be limited to big-ticket projects approved by the Neda Board, which is chaired by the President, to make sure such ventures are in support of the Marcos administration’s socioeconomic development program.
He noted that the final House bill also has punitive measures—ranging from a prison term of six years to 20 years and/or a fine of P10,000 to P5 million—against future violators of investment guidelines and policies to be drawn up by the MIC Board.
Citing the statement of the economic managers, Villafuerte said such an investment vehicle has been put up in both affluent and developing countries to achieve the economic objectives of their respective governments. He believes there are over 100 countries with sovereign wealth funds.