Sen. Risa Hontiveros SENATE PRIB file photo
MANILA, Philippines — Senator Risa Hontiveros on Thursday questioned the presidential certification of the controversial Maharlika Investment Fund bill as urgent, saying the arguments for its immediate passage are “too convoluted and vague.”
In the letter tagging the MIF proposal in the Senate as a high priority, President Ferdinand Marcos Jr. cited the global inflation, economic impact of the Ukraine-Russia war, and international interest rate hikes as “compelling” reasons to set up the investment fund.
READ: Bongbong Marcos certifies as urgent Maharlika fund bill in Senate
This, however, did not convince Hontiveros.
“The justification for the immediate passage of the Maharlika Fund is too convoluted and vague,” she said in a statement.
She denounced the push for the proposed measure despite the depleting income from the Malampaya oil and gas fields, and the still-unpassed law that would raise the government’s income from opening mines.
“Since there is no excess ‘wealth,’ they are now interested in taking the highly profitable funds of the Land Bank of the Philippines and Development Bank of the Philippines. This would be a huge loss to farmers and small businesses that cannot afford to loan from private commercial banks,” Hontiveros said.
She also took a snipe at the use of the worsening condition of global trade and banks as a “pretext” for the bill’s urgent passage.
The opposition lawmaker pointed out that the proposed MIF will also take funds from the Bangko Sentral ng Pilipinas – “our most reliable safeguard against peso depreciation, price increases, and loan interest rate increases.”
Hontiveros further questioned Malacañang’s refusal to disclose where the funds will be allocated.
“Will it be for drivers and operators who don’t have the capital for jeepney modernization? Will it be for the onion farmers or fisherfolk without cold storage for their products? Or for new power plants and solar power storage required to prevent brownouts? I suppose not.”
According to Senate Bill No. 2020, or the proposed MIF, the fund aims to boost socioeconomic development “by making strategic and profitable investments in key sectors.”
Allowable investments include the following:
- Cash, foreign currencies, metals, and other tradable commodities
- Fixed income instruments issued by sovereigns, quasi-sovereigns, and supranationals
- Domestic and foreign corporate funds
- Listed or unlisted equities, whether common, preferred, or hybrids
- Islamic investments such as Sukuk bonds
- Joint ventures or co-investments
- Mutual and exchange-traded funds invested in underlying assets
- Real estate and infrastructure projects
- Loans and guarantees to, or participation into joint ventures or consortiums with Filipino and foreign investors, whether in majority or minority positions in commercial, industrial, mining, agricultural, housing, energy, and other enterprises, which may be necessary or contributory to the economic development of the country, or important to the public interest
- Other investments as may be approved by the Maharlika Investment Corporation
Hontiveros, a staunch critic of the proposed MIF, said other sectors require more urgent funding such as social services, agriculture, transport, and energy.
“There are many Filipino families who continue to curl up in short blankets. We must not allow our economy to sink deeper because of unreasonable spending,” she said.
The Senate minority bloc – composed of Hontiveros and Senate Minority Leader Aquilino Pimentel III – is set to interpellate and scrutinize the MIF bill at Monday’s plenary.
Senate President Juan Miguel Zubiri has said that the chamber is eyeing to fast-track the passage of the proposed measure now that it has secured a boost through Marcos’ certification.
READ: Certified as urgent, Maharlika bill may get Senate approval next week — Zubiri
A different version of the proposed MIF – Marcos’ brainchild – was approved by the House of Representatives last December. The bill’s journey in the lower chamber was likewise accelerated by Marcos’ certification of the measure as urgent.
READ: Marcos says Maharlika fund creation his idea
This allowed the proposed measure to obtain the approval of the House less than a month after it was filed by Speaker Ferdinand Martin Romualdez and other lawmakers.
READ: Maharlika Bill breezes through House in 17 days