Senator Mark Villar, principal author and sponsor of the Maharlika Investment Fund (MIF) bill, discussed the checks and balances incorporated in the MIF bill.
“We made sure that better safeguards are in place. To start with, a Risk Management Committee (RMC) consisting of five members will watch over the corporation. The Risk Management Committee shall ensure that the MIC is taking the appropriate measure to achieve a prudent balance between risk and reward in both ongoing and new business activities, taking careful consideration of risk identification, measurement and assessment, mitigation, reporting, and monitoring,” Villar said
The composition of the RMC will include an independent director as chairperson, an ex-officio member of the Board, a regular director, and two senior executives of the MIC.
“In addition, the MIF is mandated to engage an Internal Auditor, who shall be independent of the management of the MIC and under the direct control and supervision of the Board of Directors, and an internationally recognized auditing firm to be an External Auditor. The books and accounts of the MIC will, of course be subject to examination and audit of the Commission on Audit in accordance with international best practices,” Villar explained
The senator also mentioned that apart from the RMC, the fund will also be monitored by the Maharlika Investment Fund Joint Congressional Oversight Committee, with seven members each from the House of Representatives and the Senate.
“Stricter penalties are also in place for officials, auditors, and members of the MIC that engage in graft and corruption. They will have to pay huge amounts of money and be in prison, subject to specific charges,” Villar said.
Villar also explained that the MIF should abide by the “Santiago” Principles, the 24 Generally Accepted Principles and Practices for Sovereign Wealth Funds endorsed by the International Forum of Sovereign Wealth Funds (IFSWF) members.
“In terms of transparency, all investment policies approved by the board of MIC shall be posted on its website and immediately made accessible to the public,” Villar added.
READ: Villar: Maharlika Investment Fund could have 8.64% return on equity every year