Rep. Edcel Lagman (Photo by GABRIEL PABICO LALU / INQUIRER.net)
MANILA, Philippines — Discussions about the proposed Maharlika Investment Fund (MIF) should not be rushed as lawmakers can use the holiday season to consult their constituents, Albay Rep. Edcel Lagman said on Monday.
In a letter to House of Representatives Speaker Ferdinand Martin Romualdez — copies of which were shared by Lagman’s office — the Albay lawmaker said that the bill containing the MIF should not be fast-tracked.
Lagman said this after the proponents of the bill said through Marikina Rep. Stella Quimbo that they were removing the P125 billion Government Service Insurance System (GSIS) allocation and the P50 billion from the Social Security System (SSS) that were originally part of the pooled MIF fund.
“With the Maharlika bill still in progress to accommodate perfecting amendments and the ascertainment of substitute contributors in lieu of GSIS and SSS still pending, may I earnestly reiterate my earlier call that the Maharlika bill must not be fast-tracked,” he said in the letter.
“Moreover, the long Christmas break from 17 December 2022 to 22 January 2023 will afford the Members of the House sufficient time to consult with their constituents on the pros and cons of the proposed measure,” he added.
Lagman was referring to the schedule of the 19th Congress, under which lawmakers would take a break after the session would adjourn on December 16 for the holiday season. The session is scheduled to resume on Jan. 23, 2023.
Earlier, Manila Rep. Irwin Tieng, chair of the House Committee on Banks and Financial Intermediaries, sponsored House Bill No. 6608 — the latest version of the original House Bill No. 6398 — which contained several key amendments aside from the removal of the GSIS and SSS fund.
According to Tieng, the new bill contains the following amendments:
- change in capitalization and funding
- change in board composition
- exclusion of Sections 15, 19, 25, and 26 on the GOCC Governance Act of 2011
- removal of exemption from the Philippine Competition Act
Currently, House Bill No. 6389 is being deliberated at the plenary, with lawmakers pointing out its flaws. With the current schedule of the House, there would be two more days to deliberate the proposal and pass it on second reading.
Passing the bill on second reading on either Tuesday or Wednesday would mean it would be ready for approval after three session days — the earliest of which would be in January. However, if the bill would be discussed at the third reading, no amendments would be allowed at the plenary.
Aside from his request, Lagman also congratulated Romualdez for heeding the people’s call to remove the GSIS and SSS funds from the proposed sovereign wealth fund (SWF).
House Bill No. 6398 was criticized heavily by opposition lawmakers and netizens due to concerns that workers in the government and the private sector may lose their pension benefits if GSIS and SSS funds would be used in the MIF and if the investments made by the Maharlika Investment Corp. would not reap high returns.
Similarly, Lagman lauded the removal of the president from the board of the MIC.
“This move allays the fear of the GSIS and SSS members that their pension and benefits may be imperiled,” he said.
“The deletion of the President of the Republic as Chairman of the projected Maharlika Investments Corporation is also welcome, but his replacement by his alter ego, the Finance Secretary, must be subject to further consideration,” he added.