Former Senate President Franklin Drilon. Screen grab / Senate PRIB file photo
MANILA, Philippines — “What the Congress directly prohibits cannot be done indirectly.”
With this reminder on Wednesday, former Senate President Franklin Drilon warned those prohibited from investing in the Maharlika Investment Fund (MIF) projects that they may face liability if they invest in it or any of its activities.
Drilon pointed out that the recently approved MIF bill “explicitly prohibits” certain government-owned and -controlled corporations (GOCCs) like the Social Security System (SSS) and Government Service Insurance System (GSIS) from investing in the wealth fund.
“The intention is crystal clear. Funds held in trust by the government, through these GOCCs, cannot be invested in the MIF,” he said in a statement on Wednesday.
“The prohibition is absolute and leaves no room for ambiguity,” he stressed.
The prohibition, he said, was clearly stated in at least two provisions of the bill — Section 6, paragraph 2 and Section 12.
However, the government’s economic managers had a different take on the bill when they claimed SSS and GSIS could still infuse funds into projects funded by the MIF.
The former justice secretary strongly disagreed with this opinion.
“What the Congress directly prohibits cannot be done indirectly,” according to Drilon. “Let’s avoid making pronouncements that undermine this prohibition and sidestep the intent of Congress.”
The senator instead urged the government to “respect the boundaries and legislative intent established by Congress regarding the prohibition.”
He also warned that the Board of Directors of state-run pension firms could be held liable if they invest in the MIF or in any of its activities.
“The prohibition against state pension funds investment into MIF is there precisely to safeguard the integrity of the funds and protect the pension of the retirees,” he said.
“The provisions would protect public funds held in trust from undue exposure or risks associated with the establishments of a state-owned investment fund,” added.
The bill recently approved by Congress has yet to be transmitted to President Ferdinand “Bongbong” Marcos for signature.