THE Finance Department expects the Maharlika Investment Corp. (MIC) to be operational before the end of the year as President Marcos Jr. is on track to sign into law the Maharlika Investment Fund (MIF) before his second State of the Nation Address (SONA).
Finance Secretary Benjamin E. Diokno said the MIC would have at least P75 billion in paid-up capital within the year, all coming from the Land Bank of the Philippines (LandBank) and the Development Bank of the Philippines (DBP).
Diokno added that the Executive branch would ensure timely preparation and completion of the implementing rules and regulations (IRR) of the proposed MIF law.
Marcos is expected to sign the MIF bill into law before his 2nd SONA in July, Diokno disclosed.
However, he revealed that the bicameral conference committee-approved and ratified version of bill has not yet been transmitted to the President for his signature.
National Treasurer Rosalia V. De Leon said the national government would be “very aggressive” in generating global attention to generate more funding for the MIF.
De Leon explained that at its initial fund of P75 billion, the MIC would not be able to bankroll projects on its own.
However, De Leon emphasized that the MIC would enter into joint ventures and co-financing in its early stages to be able to initiate investments and eventually profits.
GSIS, SSS, can still invest?
Diokno revealed that the state pension funds like the Government Service Insurance System (GSIS) and the Social Security System (SSS) can still invest directly in projects where the MIC is involved.
He emphasized that the investments must be made by GSIS or SSS directly into the projects and not into the equity of the MIF.
De Leon concurred with Diokno, noting that the GSIS and SSS can be co-financers or enter into joint ventures with the MIC.
“They cannot increase equity, but joint ventures are okay. They can invest at the project level,” she said.
Senators explicitly included a provision in the MIF bill that state pension funds like GSIS and SSS—as well as the Philippine Health Insurance Corp., Home Development Mutual Fund, Overseas Workers Welfare Administration and Philippine Veterans Affairs Office—cannot invest directly or indirectly in the MIF and MIC.
Finance Undersecretary Catherine L. Fong explained that GSIS has been in the business of conducting joint ventures, especially in infrastructure.
Fong cited the Philippine Investment Alliance for Infrastructure (PInAI) fund as an example where GSIS has a P16.764-billion investment.
De Leon reiterated that one of the advantages of the MIF is that it allows the national government to fund its budget through equity.
