Imee cites 1MDB scandal in opposing MIF
Malaysia’s 1MDB is a state fund that was founded by Najib to drive new development in the country but was later on discovered as a scheme to embezzle public funds.
The President’s sister, Senator Imee Marcos, has rejected the proposed Maharlika Investment Fund, a measure authored by her cousin House Speaker Martin Romualdez and nephew Rep. Sandro Marcos.
“With all due respect to our bankers and economists who have recommended the measure, I think creating a sovereign fund at this time of gargantuan debt and an impending world recession seems heedless and extremely risky,” Imee said in a statement.
Senator Marcos pointed out that establishing a sovereign wealth fund through House Bill 6398 is “risky” considering the funding for the proposed MIF will be drawn primarily from government financial institutions.
She said before the government thinks of investing, it must spend on water storage, fixing power rates, and bringing down the prices of basic commodities.
“Do we still have money for this? Why are we risking the retirement funds of those with the GSIS and others at a time when even the World Bank said the economy is failing especially in mid-2023?” she asked.
Catastrophic result
The lady lawmaker stressed that a sovereign fund is usually established when a country receives a windfall, citing Norway whose fund began with the North Sea oil and gas profits. She admitted she has yet to read the bill.
“Who and how the fund will be managed is another area for serious discussion,” she said. “After all, Malaysia’s 1MDB, besides Singapore’s Temasek, is the single other sovereign fund in ASEAN.”
“And we know too well the catastrophic result of that experiment — they squandered $1 billion which led to the downfall of Najib Razak’s government along with its giant party UMNO,” she added.
She was referring to the 1Malaysia Development Berhad scandal, often referred to as the 1MDB scandal.
Malaysia’s 1MDB was a state fund founded by Najib to drive new development in the country, but was later on discovered as a scheme to embezzle public funds.
Under HB 6398, the President of the Philippines shall sit as the chairperson of the MIF’s board of directors. He will also have the authority to assign a designated person to replace him as chair.