GSIS and SSS may still invest in Maharlika fund if their boards will allow – lawmaker

Logos of GSIS and SSS. INQUIRER FILES

MANILA, Philippines — The inclusion of the Government Service Insurance System (GSIS) and Social Security System (SSS) in the proposed Maharlika Investment Fund (MIF) would depend on the decision of their respective board of directors.

This was the explanation of Manila 5th District Rep. Irwin Tieng, as he sponsored and defended House Bill (HB) No. 6608 during plenary debates at the House of Representatives on Tuesday. The bill aims to establish the MIF.

Alliance of Concerned Teachers Party-list Rep. France Castro asked Tieng if GSIS and SSS can be part of the MIF’s pool of investors since a provision in the bill allows government-owned and controlled corporations (GOCCs) and government financial institutions (GFIs) to invest in the fund.

READ: Even without SSS, GSIS funds in Maharlika Fund, public must be vigilant — Castro

Tieng, chair of the House committee on banks and financial intermediaries, said in response that he cannot answer the question because it would depend on the respective board of these GFIs or GOCCs.

“Nire-raise ko na ‘yong for the record, later on, kahit na tinanggal natin ngayon ang GSIS or SSS, pwede pa rin siya later on na mag-invest?” Castro asked.

“Hindi ko po masasagot ‘yan Mr. Speaker, kasi it will depend on the board of directors nila, pero for clarifications po, tinanggal na po natin ang SSS at GSIS dito sa ating proposed House Bill,” Tieng answered.

Castro pressed on to inquire if GSIS and SSS funds may eventually be utilized to bankroll the MIF even if the current version of the proposed law removed them from the list of money sources for the trust.

“So, hindi na natin ‘yan ulit ibabalik or later on kung gusto nilang mag-invest, or SSS, mag-invest, pwede ba?” Castro asked.

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Tieng replied, saying the decision on that matter also up to the respective board of directors of GSIS and SSS.

“Nasa board of directors na po nila ‘yon, hindi ko po kayo masagot kasi right now hindi naman po sila kasali dito sa ating proposed House bill,” he said.

Castro further asked who would be responsible for allowing the GSIS and SSS money to be invested in the MIF, and Tieng reiterated that it would be the board of directors of GSIS and SSS or other GOCCs or GFIs who decide to invest in the trust, and not the board of directors of the MIF.

“So balik ako, other GFIs, and government-owned and controlled corporations may be authorized to contribute to the MIF subject to their respective investment trees, et cetera… so sino po ‘yong mag-authorize, ito po ba ‘yong MIF board, or ‘yong board nila?” Castro raised.

“‘Yong board po ng investing board,” Tieng answered,

Some provisions of the proposed measure were changed after its original version – HB 6398 – earned backlash as P125 billion from GSIS funds and P50 billion from SSS funds were named as part of the proposed pool of seed money to finance the MIF.

Under the original bill, proponents planned to put up P275 billion venture money for the MIF which will be derived specifically from the GSIS (P125 billion), SSS (P50 billion), Land Bank of the Philippines (P50 billion), Development Bank of the Philippines (P25 billion) and the General Appropriations Act (P25 billion).

READ: Proposed Maharlika Fund would no longer include SSS, GSIS funds — Quimbo

Government and private workers and pensioners of GSIS and SSS raised concern over the use of their contributions entrusted to the two agencies to bankroll the MIF. They expressed fear that their annuity and benefits under GSIS and SSS would be put in peril if the Maharlika Investment Corporation, which will be in charge of managing the MIF, makes a bad investment.

Last December 7, Marikina 2nd District Rep. Stella Quimbo announced that HB 6398 will be amended and exclude funds from GSIS and SSS to support the MIF.

Now labeled as HB 6608, its principal authors include Speaker and Leyte 1st District Rep. Ferdinand Martin Romualdez; Majority Floor Leader and Zamboanga City 2nd District Rep. Manuel Jose Dalipe; Ilocos Norte 1st District Rep. Ferdinand Alexander “Sandro” Marcos; Tingog Party-list Reps. Yedda Marie Romualdez and Jude Acidre; and Quimbo, as well as more than 200 co-authors.

Earlier this week, however, ACT Party-list Rep. Castro warned that based on their discussions with lawyer and Bayan Muna chair Neri Colmenares, money from state-controlled insurers can be reintroduced to the MIF later on.

READ: Castro: GSIS, SSS funds may still be in the mix for Maharlika fund after public fury wanes

KGA