MANILA, Philippines — Both chambers of Congress have approved the bill creating the Maharlika Investment Fund, a proposal that has raised concerns that pension funds and other government money will be put at risk.
The STAR reported that the House of Representatives adopted the Senate's version of the bill, which had initially included the Social Security Service and Government Service Insurance System as a source of funding.
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This provision was voted off during a marathon session at the Senate that ran into early Wednesday morning.
JUST IN: House of Representatives officially adopts Senate version of Maharlika Investment Fund. | @shecrisostomo pic.twitter.com/k97o5Xn3OC
— The Philippine Star (@PhilippineStar) May 31, 2023
With the House's adoption of its version of the bill, there was no need for the Senate to do anything more—it approved the proposal on third and final reading in the wee hours of Wednesday—Senate President Juan Miguel Zubiri said.
The bill will now be sent to Malacañang for President Ferdinand "Bongbong" Marcos Jr.'s signature.
While the president has the power to veto bills, that is unlikely for Maharlika, which he has certified urgent in both chambers of Congress, which promptly passed the measures.
Marcos who has been promoting the proposed fund to potential investors abroad, said Wednesday that the SSS and GSIS would not be the source of seed funding for Maharlika. He said, however, that "if the pension fund decides that Maharlika fund is a good investment, it's up to them if they want to invest in it."
‘Let’s give it a chance’
Senate President Juan Miguel Zubiri earlier told reporters to give the new investment fund “a chance.” Opposition groups and critics of the new law raised concerns that it would be abused and become a vehicle for corruption.
Zubiri noted that other countries also have sovereign wealth funds that are successful.
“[There are] maybe 90 plus countries that [have] sovereign wealth funds and under these 90 countries, there’s only one that has an issue, which is Malaysia’s,” the senate president said, referring to the 1Malaysia Development Berhad that faced issues with embezzlement and money laundering.
“We are learning from that mistake but almost 99% of other sovereign wealth funds have been very successful… so let’s give it a chance.”
"Let us give it a chance," Senate President Juan Miguel Zubiri said of the Maharlika investment fund. "Some people are saying we can't manage this fund. Why do we put the Filipino down?" @PhilippineStar @onenewsph pic.twitter.com/sk4A7E8M1h
— Marc Jayson Cayabyab (@mjaysoncayabyab) May 31, 2023
In a statement on the House panel's adoption of the Senate version of the Maharlika bill, Rep. Joey Salceda (Albay) said that the House decided to have the bill ready in time for Marcos' State of the Nation Address in July and so the executive branch can prepare the implementing rules and regulations for it as soon as possible.
"As promised, the MIF will not touch the funds of the SSS, GSIS, Philhealth, or HDMF. We are thankful for the Senate for retaining most of the accountability and transparency safeguards established by the House," he said.
Salceda, chair of the House Ways and Means Committee, said he raised some suggestions that the executive branch could address in the IRR for the Maharlika fund.
He said that the Philippines could involve multilateral financing institutions like the World Bank and Asian Development in setting up the fund to "bring in not only capital, but also experience, institutional expertise, and international credibility to the Fund."
Salceda also suggested a provision to have the fund listed on the Philippine Stock Exchange, which, he said, would mean more transparency and accountability for the investment fund.