Recto tells gov’t to curate nonperforming assets to sustain Maharlika fund
Former Senate President Pro Tempore Ralph Recto (Joseph Vildal/Senate PRIB)
MANILA, Philippines — Deputy Speaker Ralph Recto strongly urged the national government on Tuesday to prevent a “fire sale” of state-owned property, firms, and franchises only by selectively choosing the nonperforming assets it proposes to sell to support the Maharlika Investment Fund (MIF) actively.
Recto, in the same statement, said that the sold assets should also fund not only the controversial MIF but the national government’s housing project.
This came after the government recently started exploring possible sources of funds to bankroll the proposed sovereign wealth fund.
“The rule in privatization is that we should not be selling the geese that lay the golden eggs,” Recto said in a statement.
“We should be careful that what remains of state crown jewels are not included in a baratilyo (fire) sale simply because we are raising funds for a project,” he added.
Article continues after this advertisementAccording to Recto, the strategic value of a company “should come ahead of the chance to make a fast buck out of sale” in determining what can be sold.
Article continues after this advertisement“Meron tayong stewardship role na ginagampanan para sa susunod na henerasyon,” he said.
(We have a stewardship role to play for the next generation.)
However, if “derelict assets” are successfully auctioned off, proceeds should also be earmarked for “activities high in both social and financial ROIs (return on investments), like housing.”
“Kung lahat ng mga Taipans nagkakandarapa magpatayo ng condo kasi may kita doon, bakit hindi ito ang pondohan ng pamahalaan – ang pagpapatayo ng abot-kayang tirahan?” said Recto.
(If all the Taipans are scrambling to build condos because there is income there, why isn’t it funded by the government – the construction of affordable housing?)
The deputy speaker noted that shelter agencies only account for less than a tenth of a percent of the national budget, which should be enough reason for the government to use “off-budget sources” to wipe out the estimated 6.658 million housing backlog.
The Department of Human Settlements and Urban Development and its attached agencies account for P4.7 billion of the P5.26 trillion national budget this year.
“Kaya ‘yang pabahay ang dapat pondohan, hindi lang ng Maharlika Investment Fund, pati ng pambansang budget na rin,” he said.
(That’s why housing should be funded not only by the Maharlika Investment Fund but also by the national budget.)
At P1 million per unit, the DHSUD said it would require P6.658 trillion to erase the shelter deficit, which Recto noted is 127 percent of the national budget.
Recto also noted that housing is on the agenda of President Ferdinand “Bongbong” Marcos Jr.’s administration, adding that he should do better than his mother, former first lady Imelda Marcos and wife to late dictator Ferdinand Marcos, who was known for her BLISS housing program.
