President Ferdinand Marcos Jr. signs the Maharlika Investment Fund bill on Tuesday, July 18, 2023. Photo from RTV Malacañang.
MANILA, Philippines (Updated) — All the board members of the Maharlika Investment Corp. (MIC) are presidential appointees, according to the new law uploaded to the Official Gazette on Tuesday.
The MIC is tasked with mobilizing and utilizing the newly signed Maharlika Investment Fund (MIF) Act.
During his speech, President Ferdinand Marcos Jr. said that he had asked Congress to remove the president as the chair of the MIC during the measure’s initial drafts.
However, the law itself states that all of the members are appointed by the president. The members are:
- the secretary of finance
- MIC chief executive officer (CEO)
- the president and CEO of the Land Bank of the Philippines
- the president and CEO of the Development Bank of the Philippines (DBP)
- two regular directors
- three independent directors
“Within the MIC is an Advisory Body composed of the Secretary of the Department of Budget and Management (DBM), the Secretary of the National Economic and Development Authority (NEDA), and the Bureau of the Treasury (BTr) that will assist the Board of Directors in the formulation of the general policies related to investment and risk management,” the Department of Finance said in a separate statement.
According to the new law, the regular directors are appointed by the president for a term of three years upon the recommendation of the Advisory Body. Meanwhile, the independent directors are also recommended and appointed — but only for a one-year term.
“There are two regular directors appointed by the president and three independent directors. So that will the composistion of the board. But thosse who will really run it are the professionals,” Diokno said in an ambush interview.
Including the secretary of the Department of Finance (DOF) would make three of the nine directors presidential appointees.
Diokno explained that the decision to include the DOF secretary — another presidential appointee — was based on the best practices of other countries with an investment fund.
Both presidents of the DBP and the Land Bank of the Philippines were also presidential appointees.
Marcos signed the MIF on Tuesday amid concerns about a lack of safeguards for the funds.