Marcos suspends Maharlika fund implementation

[Lee]

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President Ferdinand "Bongbong" Marcos Jr. has directed the suspension of the enforcement of the implementing rules and regulations of the Maharlika Investment Fund (MIF) pending further study.

GMA News Online obtained a copy of the memorandum, dated October 12, 2023, that was signed by Executive Secretary Lucas Bersamin by authority of Marcos.

The memorandum was addressed to Bureau of Treasury officer-in-charge Sharon Almanza, Land Bank of the Philippines president and CEO Lynette Ortiz, and Development Bank of the Philippines president and CEO Michael de Jesus.

"With reference to the IRR of RA No. 11394, and upon the directive of the President, the Treasurer of the Philippines, in coordination with the LBP and DBP, is hereby DIRECTED to suspend the implementation of the IRR of RA No. 11954 pending further study thereof, and to notify all concerned heads of departments, bureaus, offices and other agencies of the executive department, including GOCCs, of such action," the memorandum read.

The suspension was also confirmed by De Jesus to GMA News Online on Wednesday.

"Memo directed the Treasurer to suspend implementation of the IRR pending further study," De Jesus said in a message.

The Office of the Executive Secretary said that Marcos wants to study the IRR to guarantee that the fund will have safeguards for transparency and accountability.

"President Ferdinand R. Marcos Jr. issued a suspension because he wanted to study carefully the IRR to ensure that the purpose of the fund will be realized for the country's development with safeguards in place for transparency and accountability," the OES said in a brief statement.

The IRR, which would spell the beginning of MIF's operationalization, was released in August.

Marcos signed into law Republic Act No. 11954 or the Maharlika Investment Fund (MIF) Act of 2023 in July, with the aim to tap state assets for investment ventures to generate additional public funds.

The law creates the Maharlika Investment Corp. (MIC), a government-owned company that will manage the MIF — a pool of funds sourced from state-run financial institutions that will be invested in high-impact projects, real estate, as well as in financial instruments.

Last month, De Jesus said the DBP remitted to the Bureau of Treasury (BTr) its mandatory contribution for the initial capital of the MIF, which is the country’s very first sovereign wealth fund.

“Yes, we remitted P25 [billion] to BTR today,” De Jesus had said.

Under the law, the initial capitalization of the MIF would be sourced from Landbank at P50 billion, DBP at P25 billion, and the national government at P50 billion.

The contribution from the national government will come from the following sources:

Bangko Sentral ng Pilipinas' total declared dividends

National government's share from the income of PAGCOR

Properties, real and personal identified by the DOF-Privatization and Management Office

Other sources such as royalties and/or special assessments

Under the law, the MIF has an authorized capital stock of P500 billion.

'Very good development'

Senate Minority Leader Aquilino "Koko" Pimentel III, who has challenged the legality of the MIF law before the Supreme Court, described the suspension of the implementation as a "very good development."

"Very good development. The law has a lot of defects. The concept has not been fully studied from the very start. Hence we should not wonder why apparently the law is not ready for implementation," Pimentel said in a text message to reporters.

"Good that the Marcos administration appears to listen to reason," he added. —with reports from Ted Cordero/KBK, GMA Integrated News

 

 

Marcos suspends Maharlika fund implementation (msn.com)

[Mike J]

No question that this fund would be a very tempting "honey pot" for anyone looking to enrich themselves at the expense of the people.  I am hopeful that Marcos is sincere in his concerns and the real purpose of the suspension and review is to close potential avenues of corruption.  This being the Philippines it is often difficult to put trust in senior government officials.   

[RBM]

1 hour ago, Mike J said:

No question that this fund would be a very tempting "honey pot" for anyone looking to enrich themselves at the expense of the people.  I am hopeful that Marcos is sincere in his concerns and the real purpose of the suspension and review is to close potential avenues of corruption.  This being the Philippines it is often difficult to put trust in senior government officials.   

The statement anyone looking to enrich themselves  makes me smile...smirk....

Mike hope springs eternally 

[Lee]

The story is changing now it appears.

Bongbong Marcos says Maharlika Investment Fund pushes through

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UPDATED MANILA, Philippines — President Ferdinand “Bongbong” Marcos Jr. on Thursday said that the Maharlika Investment Fund will push through. During his pre-departure flight speech to Saudi Arabia, Marcos said he was surprised by reports of the Maharlika suspension. “I was a bit alarmed by the news reports early this morning that I read in the newspapers that we have put the Maharlika Fund on hold. Quite the contrary. We are, the organization of the Maharlika Fund proceeds apace, and what I have done though, is that we have found more improvements we can make,” said Marcos in his speech. “We are still committed to having it operational by the end of the year,” he added, even though the memorandum sent to banks suspending the implementing rules and regulations was released through the Office of the President by the authority of Marcos. Marcos also said that the Maharlika investment fund remains a good concept. “We should not misinterpret what we have done as somehow, as a judgment of the rightness or wrongness of the Maharlika fund. On the contrary, we are just finding ways to make it as close to perfect and ideal as possible, and that is what we have done,” said Marcos. According to the President, the Maharlika Investment Fund’s implementing rules and regulations have undergone consultation with the economic managers and involved personalities. “We are encouraged by the reaction of our friends in the Middle East and, for that matter, around the world to the fund and we’re very encouraged that we are going down the right path,” he said. Marcos is headed to Saudi Arabia for the Association of Southeast Asian Nations-Gulf Cooperation Council Summit. He also said he would pitch the Maharlika Investment Fund to Saudi Arabia. JMS/abc

Bongbong Marcos says Maharlika Investment Fund pushes through (msn.com)

[Possum]

2 hours ago, Lee said:

Bongbong Marcos says Maharlika Investment Fund pushes through (msn.com)

Of course he did....

[Rooster]

6. Can the MIC issue bonds?

Yes. The MIC may issue all kinds of bonds, debentures, and securities. However, these cannot be guaranteed by the Philippine government.

https://maharlika.dof.gov.ph/resources/frequently-asked-questions/

[Kingpin]

 

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Marcos clarified that the suspension order on the MIF's implementing rules was only meant to improve its organizational structure.

He said the MIF would be operational within 2023.

http://www.cnnphilippines.com/business/2023/10/21/maharlika-fund-saudi-arabia-gulf-countries.html