GSIS chief says Maharlika Wealth Fund a long-term investment

Government Service Insurance System (GSIS) president and General Manager Arnulfo "Wick" Veloso on Tuesday branded the proposed Maharlika Wealth Fund as a "long-term investment."

Veloso said this would contribute to the goal of the Marcos administration towards nation-building.

“Ang Maharlika po ay isang long-term investment. At ang layunin po nito ay hindi lang po magkaroon ng investment ngunit magkaroon din po ng tulong for national development,” Veloso told a radio interview which was quoted in a statement issued by the Office of the Press Secretary.

(The Maharlika is a long-term investment. Its purpose is not only to have an investment but to aid in national development.)

"The Maharlika Investment Fund is an opportunity for us to be able to invest in an opportunity not only to allow us to get returns but also to have a contribution to nation-building," he added.

Veloso allayed fears and concerns over transparency issues in the MIF as he ensured that the proposed Maharlika Board will guarantee that the investments under the fund are protected.

"We would like to let the public know that this is an opportunity for us to be able to push the country to grow, and again I reiterate that whatever investments we make here are going to accrue to the members of the Government Service Insurance System and we are there at the Maharlika Board to make sure the investments are protected while at the same time help in nation building," Veloso said.

"At kami po ay naroroon para siguraduhin na ma-invest ito properly [We are there to ensure that it would be invested properly]. There are various layers of transparency to make sure that the funds are protected and invested properly and we are going to make sure the public is going to be made aware," he added.

According to Veloso, there will be a representation of the private sector through the participation of independent directors, congressional oversight and an internationally accredited auditing firm.

The Maharlika Wealth Fund, as proposed under House Bill 6398, aims to allow the government to invest surplus reserves or revenues in real estate and financial assets.

Under the proposal, government financial institutions (GFIs) such as the GSIS, the Social Security System (SSS), the Land Bank of the Philippines (LandBank), and the Development Bank of the Philippines (DBP) will be allowed to invest their funds for higher returns.

The Palace has not yet release any statement regarding the Maharlika Wealth Fund despite repeated requests from the media.

A number of stakeholders, including Bangko Sentral Governor Felipe Medalla, have already expressed concern over the proposed measure, citing its impact on the country’s reserves and the lack of transparency.

Retired Supreme Court Justice Antonio Carpio has said the use of the investible funds of the SSS and GSIS for the proposed Maharlika Wealth Fund is unconstitutional. — Anna Felicia Bajo/RSJ, GMA Integrated News