MANILA, Philippines — Senate Minority Leader Aquilino Pimentel III urged President Ferdinand Marcos Jr. to pay attention to the warnings and issues raised by the University of the Philippines School of Economics’ (UPSE) economists and faculty members on the controversial Maharlika Investment Fund (MIF) bill.
“I urge and hope the President will seriously consider the warnings put forth by these distinguished economists,” Pimentel said in a statement Saturday.
The senator had earlier called on Marcos to veto the measure, as he described the heavily reconstructed and recently approved bill as “unsalvageable.”
Meanwhile, 21 UP economists and academics from UPSE appealed to the President to “seriously reconsider” the measure, claiming it “violates fundamental principles of economics and finance.”
“Sigurado po tayo na walang agenda itong dalawang dosenang ekonomista ng Unibersidad ng Pilipinas kung hindi ang kapakanan ng ating bayan. Please take heed, Mr. President,” Pimentel said.
Pimentel said the 21 economists expressed their grave concern for the bill in a 25-page discussion paper.
“In our view, the MIF violates fundamental principles of economics and finance and poses serious risks to the economy and the public sector – notwithstanding its proponents’ good intentions,” they said.
Pimentel backed the faculty members and economists of UPSE as he criticized the lack of a “new source of funds like surplus in trade or budget to fund the MIF.”
“The lack of any surpluses necessarily forces the MIF to scour money from other agencies and corporations of government, posing risks on, say, state-run banks and even the BSP,” the economists said.
Pimentel believes that MIF “takes away precious funds from the public coffers” and “poses huge risks to our already strained public coffers and is vulnerable to moral hazard.”
The senator also emphasized “the bill’s lack of transparency safeguards,” which “can open the funds to all kinds of abuses.”
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