MIF IRR strengthens board’s independence

LOS ANGELES, California — President Ferdinand R. Marcos Jr. on Friday (US time) addressed concerns about the revised Implementing Rules and Regulations of the Maharlika Investment Fund, emphasizing that changes were made to strengthen the independence of the board and prevent political interference.

In a media interview, Marcos denied allegations the IRR was “relaxed” to allow Rafael D. Consing Jr. to be appointed president and chief executive officer of the Maharlika Investment Corporation.

Consing denied the allegations earlier this month, saying that the perception that it was revised to favor him was “absolutely wrong.”

Marcos said the revisions aimed to tighten control and ensure the fund’s integrity.

“I don’t know where we relaxed anything. Quite the contrary, we tightened things up,” the President said.

He explained that the primary focus of the revisions was to grant the board greater autonomy in decision-making, particularly regarding the fund’s investments and personnel.

This move, he said, was driven by his desire to shield the MIF from political influence.

“I repeatedly said I do not want political forces to interfere with the financial decisions of the investment fund. And so, there were powers, there were authorities that were being still granted to the government side,” Marcos said.

“That’s why I said let the board decide. The board has to be the one to decide even the choice of people, even the structural organization, as much as possible. Now, of course, the government has an interest in that. So, the government has to be involved. But as much as possible, in the day-to-day workings of the fund, we leave it to the board, we leave it to the managers,” he said.

He acknowledged the public’s concern regarding his power to accept and reject board nominees. However, he defended this provision by drawing an analogy to a corporation, where the entity with the largest capital interest holds the biggest voting power.

“Well, we hold the controlling interest, we are the government. It’s like, in a corporation, the entity with the largest capital interest has the most votes. That’s what happens,” he said. “It’s just that simple. It’s not really an unusual arrangement. It’s a perfectly proportional arrangement.”