Finance Secretary Benjamin Diokno and National Treasurer Rosalia de Leon. (FILE PHOTOS)
MANILA, Philippines — The search for top executives and directors of the Maharlika Investment Corp. (MIC), who will manage the Maharlika Investment Fund, is now in overdrive as the implementing rules and regulations (IRR) of the MIF law has been issued.
Finance Secretary Benjamin Diokno told journalists that the IRR was published on Aug. 28 in the Official Gazette and will take effect on Sept. 12.
Diokno added that the MIC advisory body — composed of the national treasurer of the Philippines, budget secretary, and secretary of the National Economic and Development Authority (Neda) — had convened and met for the first time in Tokyo when they were visiting for meetings with Japanese officials and business leaders.
Diokno and his colleagues attended the 14th Philippines-Japan High-Level Joint Committee Meeting on Infrastructure Development and Economic Cooperation, held in Tokyo on Aug. 28.
He said that with the Maharlika law’s IRR set to take effect in two weeks, the search for the president and chief executive of the MIC as well as two regular directors and three independent directors is on.
“The success of the implementation of the [MIF] hinges on selection of the best people to oversee and manage the fund and strict compliance with the provisions of the law,” Diokno said.
Safeguards
“This is why they made sure to include all possible safeguards in the IRR, ensuring that all our bases are covered,” he added.
National Treasurer Rosalia de Leon, whom Republic Act No. 11954 tasked to lead the crafting of the IRR, said in a statement the rules are faithful to the law to ensure that the prescribed procedures and guidelines will lead to its harmonized application.
“The Bureau of the Treasury, along with founding government financial institutions (GFIs)—Development Bank of the Philippines and Land Bank of the Philippines, worked closely with the technical working group (TWG) to make sure that the IRR is consistent with the Maharlika Act,” de Leon said.
The TWG consisted of the Department of Finance, Department of Budget and Management, Securities and Exchange Commission, Neda, Office of the Government Corporate Counsel and the Governance Commission for Government-Owned or Controlled Corporations (GOCCs).
Meanwhile, Diokno said the private sector will play a key role in helping the MIF grow. The MIC has an authorized capital stock of P500 billion of which the national government shall contribute P50 billion.
Dividends from BSP
This contribution will come from the dividends of the national government from the Bangko Sentral ng Pilipinas (BSP), share from the income of the Philippine Amusement and Gaming Corp., share in revenues from gaming operations of other government-owned gaming operators and regulators; proceeds from privatization of government assets; and other sources such as royalties.
Other GFIs and GOCCs may invest in the MIF as well, subject to their respective investment and risk management strategies.
However, those providing social security and public health insurance services—like the Government Service Insurance System—are absolutely prohibited from investing in the MIF.
“Our nondeal roadshows abroad show that the MIF is being well-received by foreign institutions looking to invest in the Philippines,” Diokno said. “The private sector will play a huge role in bringing in funds to grow the MIF.”