Maharlika fund must adhere to transparency, accountability —local execs

The Union of Local Authorities of the Philippines (ULAP) on Friday said it supports the creation of the Maharlika Investment Fund (MIF) as a key strategy for the country's economic progress and key growth accelerator for the provinces.

In a statement, the group of local government executives said the operations of the fund must adhere to internationally-accepted standards of transparency and accountability.

"As the proposed Maharlika Investment Fund promises to reap optimal returns on investments (ROIs) while contributing to the overall goal of reinvigorating job creation and poverty reduction by steering the economy back to its high-growth path, all of its transactions shall abide by the arm’s length principle and the prudent person rule," it said.

House Bill 6608 was approved on third and final reading last December 15 before Congress went on break.

The MIF bill seeks to maximize the investible funds of state-run financial institutions and ultimately increase public funds for nation-building.

The measure provides that the MIF would be funded by the investible resources of the Landbank of the Philippines (P50 billion), the Development Bank of the Philippines (P25 billion), and the dividends/profits of the Bangko Sentral ng Pilipinas.

"With the transparency and accountability provisions inscribed in House Bill No. 6608 and the assurance that all necessary safeguards are put in place to protect the interests of the Filipino people, the Union of Local Authorities of the Philippines supports the passage of the bill establishing the Maharlika Investment Fund," the group said.

ULAP said that the government must be steadfast in seeking resources and undertaking long-term sustainable efforts toward national recovery and creating wealth at all levels as we recover from the pandemic.

"It is a strategy that could unleash needed investments in sectors that support local economies and finance long-overdue infrastructure projects, such as modern agriculture technologies, renewable energy facilities, low-cost housing, reliable and efficient transportation systems, and stable high-speed internet connectivity, among others," it said.

ULAP cited that nations such as Singapore, Norway, Abu Dhabi, and China have set the example of leveraging their respective state sovereign wealth funds to drive capital into much-needed investments, thus unlocking their nation’s economic acceleration.

ULAP is the umbrella organization of all leagues of local government units (LGUs) and locally elected government officials formed in 1998.—Sherylin Untalan/LDF, GMA Integrated News