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Governance Commission for GOCCs backs Maharlika Investment Fund bill

The Governance Commission for Government-Owned and Controlled Corporations (GCG) on Friday expressed support for the proposed Maharlika Investment Fund (MIF), a measure that would use GOCC assets for investment.

"Sa tingin namin, ito ay isang paraan para isulong ang gusto ng Pangulo na palakasin ang ating ekonomiya, at ito ay sang-ayon rin sa ating eight-point socio economic agenda," said GCG Commissioner Gideon Mortel during the day's public briefing.

(This is one of the President's actions in strengthening our economy, and this is in accordance with our eight-point socio-economic agenda.)

The Marcos administration's eight-point socio-economic agenda include:

  • protect purchasing power and mitigate socioeconomic scarring
  • reduce vulnerability and mitigate scarring from the Covid-19 pandemic
  • ensure sound macroeconomic fundamentals
  • create more jobs
  • create quality jobs
  • create green jobs
  • uphold public order and safety, peace and security and
  • ensure a level playing field

GCG is the agency that regulates state-run corporations.

"The concern of GCG here is we are keeping close watch because the funds for this will be sourced from GOCCs which is under our jurisdiction, and this will have an effect in their performance," Mortel said.

"Pero kaisa tayo ng ating economic team sa pagsusulong ng programang ito, kahit binabantayan namin kung ano ang magiging final form," he added.

(But we are one with the economic team in pushing for this program, even as we are waiting for its final form.)

The MIF bill has already been passed by the House of Representatives and is currently being tackled in the Senate.

The bill provides that it would be initially funded by the investible resources of state-run GOCCs like the Land Bank of the Philippines (P50 billion), the Development Bank of the Philippines (P25 billion), and the dividends and profits of the Bangko Sentral ng Pilipinas.

Meanwhile, GCG Chairperson Alex Quiroz said they are currently reviewing possible onerous contracts entered into by the GOCCs.

"We have to look into those [GOCCs] who might have onerous contracts that they entered into. I am not attributing that this is intentional, but we would like a second, hard look at these contracts entered into by GOCCs," he said. 

Quiroz said that the agency's directive from President Ferdinand Marcos Jr. is to ensure transparency, digitalization, and rightsizing. —KBK/VBL, GMA Integrated News