Supreme Court to state banks: Respond to petition vs Maharlika Fund
MANILA, Philippines — The Supreme Court has directed the Bangko Sentral ng Pilipinas (BSP), the Land Bank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP) to respond to a petition challenging the legality of the Maharlika Investment Fund.
The high court issued the order—part of its procedures in handling petitions—during its en banc session on Tuesday, February 18, giving the respondents a non-extendible period of 10 days to file their comments.
The oral arguments of the petition will be held on April 22.
The petition
The petition, filed in September 2023 by Sen. Koko Pimentel and former and current Bayan Muna party-list representatives Neri Colmenares, Carlos Zarate and Ferdinand Gaite, argues that the passage of the Maharlika Fund violated constitutional requirements.
The petitioners contend that the measure did not undergo three separate readings on different days, as mandated by law, and failed to meet the economic viability test stipulated in the Constitution. They also claim that it undermines the independence of the BSP.
In response, the government, represented by the Office of the Solicitor General, has called for the dismissal of the petition, citing a violation of the judicial hierarchy.
The original respondents included Executive Secretary Lucas Bersamin, former Finance Secretary Benjamin Diokno, and both chambers of Congress.
It remains unclear, however, why BSP and the two state-run banks were added as respondents.
Notably, Landbank and DBP contributed a combined P75 billion as initial capital for Maharlika, while BSP was mandated by the Maharlika Investment Fund Act of 2023 to remit up to P50 billion, or 100% of its total dividends, to support the fund during its first two years.
If upheld by the Supreme Court, a decision against the fund would render it unconstitutional and void.
Latest developments
Since its establishment in 2023, the Maharlika Investment Fund has made limited progress. Its first investment was finalized in January this year when it acquired a 20% stake in the National Grid Corp. of the Philippines, or NGCP.
Rafael Consing Jr., CEO of the corporation managing the Maharlika Fund, the stake in NGCP secured two board seats each and its parent company, Synergy Grid & Development Philippines Inc., owned by Henry Sy Jr.
Additionally, on February 11, the Maharlika Investment Corp. signed an agreement with Thailand's Charoen Pokphand Group Co. Ltd. to explore investments in agriculture, digital innovation, and sustainable energy in the Philippines.
In a recent interview with OneNews, Consing disclosed plans for another significant infrastructure investment involving a foreign-listed company.
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