Chiz: Monitor progress of Maharlika

MANILA, Philippines — Now that the Maharlika Investment Fund is just waiting for President Marcos’ signature to be created under a new law, Sen. Francis Escudero has advised both MIF critics and proponents to monitor the progress of the sovereign wealth fund.

“Those who are dissatisfied, continue monitoring the progress of the MIF; those who agreed to it, they said they would closely monitor its progress and asked that critics give it a chance [to succeed],” Escudero, speaking in Filipino, said in an interview over the weekend on dwIZ radio.
The MIF is presently considered an enrolled bill, so unless the President vetoes it and sends it back to the Senate, the MIF will be signed into law, he explained.

Escudero, who is a lawyer, admitted being surprised over the swift passage of the MIF at the Senate past 2 a.m. last Wednesday, following marathon deliberations that began Tuesday. He said he went home hours before, thinking they would come in the next morning to vote.

Like him, Senate Minority Leader Aquilino Pimentel III and the President’s eldest sister Sen. Imee Marcos were not in the plenary during the voting to pass the bill.

A total of 19 senators voted to approve it, Sen. Risa Hontiveros voted against it, while Sen. Nancy Binay abstained.

Escudero recalled having raised concerns over the absence of a “test on economic viability,” a constitutional requirement in passing a measure to create government-owned and controlled corporations (GOCC).

He said the “test on economic viability” is a document that would detail the specific details on the target earnings of the MIF as a GOCC.

He emphasized that this requirement was included in the 1987 Constitution due to the numerous GOCC bankruptcies in the past that burdened taxpayers. The purpose of the document is to ensure that the company will not go bankrupt.

However, Escudero clarified that the document submitted for the MIF was a business proposal rather than a comprehensive test of economic viability.

“The document that was submitted does not respond to that, and I am not objecting. I just want to provide ammunition to the administration and the Solicitor General so that if someone questions, they, not I, can defend it,” he said.

Recalling the circumstances during the crafting of the 1987 Constitution, Escudero highlighted the significant debts of GOCCs at that time, stating: “GOCCs have had about P26 billion to P27 billion in debts when the government’s national funds were only P117 billion.”

Escudero said the 1987 Constitution does not clearly define the difference between the test on economic viability and feasibility. But he said it can be referred to the Supreme Court for clarification.

No irregularity

Meanwhile, Escudero said there was nothing irregular when the Senate and the House of Representatives did not ratify the MIF since the House decided to adopt in full the version approved by the Senate.
“The bicam didn’t push through. Many times in the past, the House or the Senate did that, without bicameral,” said the senator, as he acknowledged that the initial constitution of a bicameral conference was held at the Manila Polo Club on Wednesday, hours after the Senate passed the MIF bill.

Escudero said a similar case happened in the abolition of the Road Board, when the bicam was already in the middle of a discussion but the Senate, really wanting to abolish the board that managed the motor vehicle user’s charge, opted to adopt the House version.