New perspectives on Maharlika Fund
Political hacks on either side should sober up, shed off all biases, and give our suffering nation a chance to move forward economically, even if in seemingly uncharted waters, with the Maharlika Investment Fund (MIF).
The MIF’s revised implementing rules and regulations (IRR), the well-studied handiwork of the economic managers, certainly do not fully satisfy everyone, but one important feature is that the operational management will be apolitical; the board of directors (BOD) of its subsidiary corporation, the Maharlika Investment Corp. (MIC), has been given substantial autonomy in the conduct of operations. The government will wind up as the biggest single investor in the MIC, and the excess funds of more than 200 government-owned and -controlled corporations could eventually fall within its ambit as investments. Except for the President’s imprimatur approval of nominees to the BOD and key officers, the important corporate committees will be formed by the BOD itself, headed by the Department of Finance secretary, in an honorary capacity.
We’d recall in the 2022 Commission on Audit reports a staggering combined amount of idle funds found with several government branches, unspent, or deposited elsewhere. The Department of Budget and Management should consider requiring all excess and idle funds to be returned to the treasury and into the MIC as investible funds and made available for our development projects that rely on loans. Without prejudging it with ulterior political motives, Filipinos everywhere can choose to help build the country’s economy by putting their own savings with attractive returns and sovereign treasury guarantees.
With the revised IRR, President Marcos has expressed noninvolvement with the MIC operations; we hope international credibility could be enhanced, making it apolitical and a regular banking and investment institution, run by professional management appointed by its shareholders, primarily aimed at financial viability like any other private banking institution.
MARVEL K. TAN, CPA, [email protected]
