THE House of Representatives on Wednesday went to a sine die adjournment with the adoption of the Senate version of the proposed Maharlika Investment Fund (MIF), a priority measure of the Marcos administration.
Both the House and the Senate end this week the First Regular Session of the 19th Congress.
The adoption of the Senate version was decided during a prebicameral meeting between members of the Congress on Wednesday, just hours after the Senate, voting 19-0-0, approved on second and on third reading, in quick succession, the MIF bill certified by the President.
Critics slammed the quick passage of the bill, with Akbayan Party calling it the “largest investment scam” of the country. Economic managers, however, all defended the MIF measure as necessary to hasten Philippine economic progress and reduce poverty.
With the bicameral conference committee’s adoption of the Senate version, the bill will now be transmitted to the President for signature.
House Committee on Ways and Means Chairman Joey Sarte Salceda, a member of the Maharlika bicameral committee, said the MIF is the first but “it does not have to be the last sovereign wealth fund (SWF) that the government can create.”
“The House has decided to adopt the Senate version, so that the Executive can begin crafting the rules and regulations – which no doubt will be as significant as the law itself. We expect the President to announce that he has signed it by SONA,” he said, referring to the State of the Nation Address in late July.
As promised, Salceda said the MIF will not touch the funds of the SSS, GSIS, Philhealth, or HDMF.
“We are thankful for the Senate for retaining most of the accountability and transparency safeguards established by the House,” he added.
To refine the implementation, Salceda said he raised some points that “I hope can be addressed by the Executive.”
Salceda said he suggested that the government allow multilateral financing institutions like the World Bank and the Asian Development Bank to be strategic partners with a stake in the founding of the MIF.
“These banks bring in not only capital, but also experience, institutional expertise, and international credibility to the Fund,” he said.
“I also suggested that we make a provision for listing in the stock market. The Senate version, which we adopted, can allow for that in
the implementing rules and regulations. Listing, of course, subjects the MIF to more transparency and public accountability standards,” he added.
‘Largest scam’
Calling it the “country’s largest investment scam,” the Akbayan Party on Wednesday slammed the Senate’s quick passage of the MIF bill, approved on second and third and final reading by senators on the eve of the adjournment of the First Regular Session of the 19th Congress.
“Our lawmakers just passed a measure enabling the country’s largest investment scam. And the government itself is the con artist,” declared Akbayan in a statement on Wednesday morning, hours after the Senate voted with 19 yes votes, one no vote and one abstention at 2:30 in the morning.
Deputy Minority Leader Risa Hontiveros, an Akbayan member, cast the lone negative vote. Sen. Nancy Binay abstained.
Minority Leader Aquilino “Koko” Pimentel III, who delivered a lengthy turno en contra speech detailing the perils of creating a supposed sovereign wealth fund (SWF), not on surplus monies but largely on debt and on contributions from the central bank, was absent during the final vote. Senators Imee Marcos and Chiz Escudero, who have warned against rushing passage of the MIF bill in its current form, were also not around when the vote was called.
Clarification
Meanwhile, Salceda said the rules also need to clarify the extent of coverage by the Civil Service Commission.
“While the Senate version provides for compensation rules, we can clarify in the IRR how the CSC will regulate MIF employees,” he said.
Meanwhile, Salceda appreciated the Senate’s effort to remove special exemptions, including tax exemptions.
“I agree with the point that government neutrality is a desirable element in an investment corporation. But I expressed my reservations on requiring regular dividends out of the MIF. The point of an investment company is to compound its funds, and dividend remittances even when the Fund can achieve a bigger return, can reduce the power of compounding. While the Treasurer has assured me that the President can exempt the MIF from dividends, I hope they give the MIF sufficient time to compound its funds,” he said.
“I also requested that we ensure that members of the Board, during meetings, attend themselves and are not represented by proxies,” he added. With Butch Fernandez