Proposed Maharlika fund to be free from politics, says Rep. Marcos

The proposed sovereign wealth fund dubbed as Maharlika Investment Fund (MIF) will be free from politics, one of its authors, House Senior Deputy Majority Leader Sandro Marcos, said Monday.

Marcos, son of incumbent President Ferdinand "Bongbong" Marcos Jr., was referring to House Bill 6398, which provides that a P250-billion capital for the MIF will come from state financial institutions, including Government Service Insurance System and Social Security System, and another P25 billion from the National Treasury.

Other contributions will come from the Bangko Sentral ng Pilipinas (BSP) and the Philippine Amusement and Gaming Corporation, among others, the bill states.

The same bill provides that the incumbent Philippine president will sit as chairman of the MIF board.

"The whole point of this exercise is that this corporation will be free from politics. That's why it needs to be run by technocrats; wala silang interes sa pulitika [they are not interested in politics]," Rep. Marcos said in a statement.

"Yes, the President will be chairman of the board, but...you have to look at it beyond this administration. This is not something for the next six years, this is something that will keep on going," he added.

In addition, the younger Marcos said that the proposal for a sovereign wealth fund is not unique to his father's administration.

"Well if you think about it, this isn't a new idea. [Budget Secretary] Benjamin Diokno already said they were looking at it during the time of [President Rodrigo] Duterte. Former Senator Bam Aquino filed a bill in 2016 trying to do the same thing. I believe Senator JV [Ejercito] also filed a bill," Rep. Marcos said.

"It became apparent that the President was in support of creating a sovereign wealth fund but the idea did not come from him per se."

Senate finance panel chairperson Sonny Angara, for his part, said the Maharlika Fund is a high-risk, high-reward endeavor that needs safeguards.

"Accessing contributions of pension funds would be a ticklish issue and may encounter some obstacles. Best to access investible funds and use dormant government assets or those with high potential upsides like real properties abroad as part of the equity of the fund," he said in a separate statement.

"I’m sure the senators will scrutinize the measure and inject safeguards and best practices," he added.

BSP Governor Felipe Medalla has already expressed apprehension over the MIF, saying it is highly dependent on governance and could expose public funds to unnecessary risks. —Llanesca T. Panti/KBK, GMA Integrated News