Finance Secretary Benjamin Diokno (FILE PHOTO)
MANILA, Philippines — The advisory body for the Maharlika Investment Corp. (MIC), which will manage the Maharlika Investment Fund (MIF), is expected to present their recommendations for six vacant positions in MIC’s board of directors to President Ferdinand Marcos Jr. on Sept. 29, according to Finance Secretary Benjamin Diokno.
The advisory body will be composed of the budget secretary, the secretary of the National Economic and Development Authority, and the national treasurer.
Diokno said in a briefing with journalists on Friday that the advisory body will be ready with their recommendations two days after the Sept. 7 deadline for nominations.
“They [advisory body] will be recommending [candidates for the positions of] president and CEO as well as two regular directors and three independent directors,” he said.
These six will complete the nine-member MIC board, which, according to the MIF law implementing rules and regulations (IRR), will immediately convene when at least five members have assumed office.
Operational by year-end
Diokno himself, in his capacity as finance secretary, is MIC chair. The respective president and CEO of the Land Bank of the Philippines and the Development Bank of the Philippines complete the nine.
The IRR that was released last month states that these three, being ex officio board members, may designate and authorize an alternative — someone else to serve instead of themselves.
The IRR also states that the first order of business for the MIC board is to identify the location of the state firm’s head office somewhere in Metro Manila; appoint the corporate secretary; appoint the chief investment and operating officer and other key officers or employees and determine their compensation structure; and craft general guidelines related to the formulation of investment and risk management policies.
As of last week, P107 billion out of the P125-billion initial capitalization is considered available with Landbank having remitted to the Treasury their respective contributions of P50 billion and P30 billion.
The national government, which the MIF law mandates to contribute P50 billion, is sourcing the amount mainly from dividends declared by the Bangko Sentral ng Pilipinas (BSP). Diokno, a member of the BSP’s Monetary Board, earlier said the central bank declared last July dividends of P31.86 billion in favor of the national government.
Other sources of the national government’s contribution to the Maharlika seed fund include its 10 percent share in Philippine Amusement and Gaming Corp.’s yearly income; proceeds from the privatization of assets; royalties; and shares of stock owned by the Republic of the Philippines.
Diokno also said that with the Maharlika capital made available so far, the MIC is expected to be operational by year-end.