Gatchalian calls on lawmakers to determine where Maharlika will source funds

MANILA, Philippines — Senator Sherwin Gatchalian on Sunday emphasized the need to determine where the controversial Maharlika Investment Fund (MIF) will source its capital.

Gatchalian stated this during an interview with DZBB, where he highlighted that the funding of the MIF should be the main topic of discussion among Senate members once the Upper Chamber formally takes up the proposal in a committee hearing.

“May mga issues na dapat pag-usapan na mabuti. Unang-una, yung pondo saan kukunin, hanggang ngayon debate pa rin ‘yan,” said Gatchalian.

(There are issues that should be discussed carefully. First of all, where the funds will be taken from is still a debate.)

“Pangalawa, assuming makakalikom tayo ng pondo, eh sapat ba ‘yan para kumita dahil sa mga ganitong sovereign wealth fund?” he added.

(Second, assuming we can raise funds, is that enough to make a profit because of these sovereign wealth funds?)

According to Gatchalian, the controversial MIF must be funded with a large sum before it even produces a substantial return —  this alone highlights the need to actually pinpoint where the government will be getting the money to fund it.

Gatchalian explained that even now, the country is struggling to fund the construction of schools.

“Malaki talaga ang pangangailangan ng ating bansa pagdating sa pondo. Ngayon as to the timing, sa akin ang pinaka concern ko is more kung saan kukunin ang pondo dahil kung may pagkukunan tayo, let’s say may sobra tayo, then pwede nang ma-solve ang timing pagdating ganun,” said Gatchalian.

(Our country’s needs are really dire when it comes to funds. Now as to the timing, to me, my biggest concern is where to get the funds because if we have resources, let’s say we have a surplus, then we can solve the timing when it comes.)

“Pero kung wala kang pagkukunan, timing will be an issue dahil marami nga tayong pangangailangan (But if you don’t have resources, timing will be an issue because we have many needs),” he added.

The senator also noted the risk of recession around the world but claimed that even with this, the country is still in good condition economically.

Meanwhile, when asked what he thought of the lower chamber’s new version of the MIF, which dropped the Bangko Sentral ng Pilipinas (BSP) in favor of an initial public offering (IPO), Gatchalian said understands how it provides a “check and balance.”

“Naisip ko kaya i-IPO ng mga proposal ay para umayos ang kanilang governance structure, ibig sabihin hindi lang gobyerno ang nasa loob kundi may private sector, ibig sabihin may check and balance ka, government and private na nagmamanage at nagbibigay ng regulation o ng oversight dito sa pondong ito,” he said.

(I think that the proposed IPO is to fix their governance structure, meaning that it is not only the government that is involved but also the private sector. This would mean it would have a check and balance; the government and private sector will manage and provide regulation or oversight in the fund.)

However, the senator pointed out that the said version also does not specify where the funds will be taken from.

“Pero babalik kasi tayo sa original, saan kukunin ang pondo. Kahit anong government structure ang ilalagay natin doon kung may pondong hindi sapat, baka hindi rin maging effective itong iniisip nating Sovereign Wealth Fund,” said Gatchalian.

(But we will still go back to the original question: where the funds will be obtained? No matter what government structure we put in place, if there are insufficient funds, the Sovereign Wealth Fund that we think of may not be effective.)

“Pero ganun pa man, maganda mapag-usapan ito para lumabas ang mga ganitong detalye at malaman natin kung ano ang benepisyo nito sa ating bansa,” he added.

(But anyway, it’s good to talk about it so that these details can be discussed, as well as its benefits to our country.)

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