The Maharlika Investment Fund (MIF) may be financed by government profits or royalties from the Malampaya gas field, loans, and proceeds from the sale of state assets, a senator supporting the measure said on Tuesday.
Irwin Tieng of Manila, the chair of the house committee on banks and financial intermediaries, made the announcement in response to questions from France Castro of the ACT Teachers party list and Arlene Brosas of the Gabriela party list.
Tieng quoted Section 11 of the MIF statute, which specifies the following additional sources for the Maharlika Investment Fund:“royalties and/or special assessments on natural resources based on the fiscal regime to be implemented by the national government, proceeds from privatization of government assets and public borrowings.”
“What the authors [of MIF] mentioned are royalties from oil exploration like Malampaya, as well as privatization of government assets like Pagcor (Philippine Amusement and Gaming Corporation),” Tieng said.
“We are just giving the MIF Corporation the flexibility, in case na kailangan natin. But it will still be subject to the approval of the advisory board and the MIF Corporation Board of Directors,” Tieng added.
Tieng sponsored House Bill 6608, the proposed legislation, in plenary. The measure aims to increase public finances by maximizing the investible funds of government financial firms through investments. The measure stated that the MIF Corporation, which would be led by the president, will manage it.
Maharlika Investment Fund
Castro urged people not to use their Malampaya earnings for anything unauthorized by the law.
She explained that the Malampaya fund must be used for energy development initiatives in accordance with the law.
“The Malampaya fund has already been used for the fertilizer fund scam. And public borrowings are even included as a source of funds…so apparently we are even allowed to borrow for the capitalization of MIF,” Castro said.
“Ipapatanggal natin itong royalties at public borrowings kasi delikado ito. Magkakaroon pa tayo ng loan para sa investment funding na ito eh taumbayan pa rin ang magbabayad nito,” she added.
Brosas concurred with Castro that the Maharlika Investment Fund’s money sources are dubious, stating that such a clause on natural resources’ royalties might potentially impact the revenues for indigenous people communities, as stipulated in Section 17 of the mining law.
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