Albay Rep. Joey Salceda. (INQUIRER FILE PHOTO)
MANILA, Philippines — The House of Representatives agreed to adopt the Senate version of the proposed Maharlika Investment Fund (MIF) so that the executive department can start crafting its rules and regulations.
This was the explanation given by Albay 2nd District Rep. Joey Salceda.
He added that he was expecting President Ferdinand Marcos Jr. to announce his signing of the MIF bill during his second State of the Nation Address (Sona) this July.
“The Maharlika Investment Fund (MIF) is the first but it does not have to be the last sovereign wealth fund (SWF) that the government can create. The House has decided to adopt the Senate version so that the executive can begin crafting the rules and regulations – which no doubt will be as significant as the law itself,” Salceda said.
Salceda gave an assurance that the MIF would still keep its hands off the pension funds of the Social Security System, Government Service Insurance System, Philippine Health Insurance Corp., and Home Development Mutual Fund — all of which were initially rumored as possible funding sources.
“As promised, the MIF will not touch the funds of the SSS, GSIS, Philhealth, or HDMF. We are thankful for the Senate for retaining most of the accountability and transparency safeguards established by the House,” he added.
READ: Maharlika bill in Senate still allows SSS, GSIS investments
Earlier, select members of both chambers of Congress, led by House Speaker Ferdinand Martin Romualdez and Senate President Juan Miguel Zubiri, met for the bicameral conference committee on the bill.
However, a separate bicameral conference committee report appears to be no longer needed as Manila Rep. Irwin Tieng, chair of the House Committee on Banks and Financial Intermediaries, said that the House would accept the Senate version of the bill.
“On behalf of the Congress panel, we accept the Senate version in principle — subject to style,” Tieng said.
READ: House adopts Senate version of Maharlika bill
Salceda said he made some suggestions during the bicameral conference committee meeting, which he hoped could be addressed by the executive during its crafting of the implementing rules and regulations of the bill — if enacted.
“First, I suggested that we allow multilateral financing institutions like the World Bank and the Asian Development Bank to be strategic partners with a stake in the founding of the MIF. These banks bring in not only capital, but also experience, institutional expertise, and international credibility to the Fund,” he said.
“I also suggested that we make provision for listing in the stock market. The Senate version, which we adopted, can allow for that in the the implementing rules and regulations. Listing, of course, subjects the MIF to more transparency and public accountability standards,” he added.
The House approved its version of the MIF bill last December after it was certified by Marcos as urgent. The certification also allowed the Senate to do away with the requirement of three-session days before a bill passed on the second reading could be deliberated on the third reading.
READ: House passes Maharlika Investment Fund bill
READ: Marcos Jr. certifies as urgent Maharlika Investment Fund bill
The MIF bill garnered controversy early on when an earlier version included pension contributions as funding sources — stoking fears that pension payments might be lost if the MIF would pursue investments that end up losing.
However, the House removed these from the funding sources — with the Senate and the Department of Budget and Management also assuring that the pensions would not be touched.