Maharlika Corp. OKs P125-B capitalization scheme, identifies potential sectors for investment
![Maharlika Investment Fund, MIF](https://images.gmanews.tv/webpics/2024/01/IMG_0227_2024_01_04_13_38_16.jpeg)
The Maharlika Investment Corp. (MIC), the government-owned firm tasked to mobilize the country’s first sovereign wealth fund, has conducted its first board meeting to discuss the Maharlika Investment Fund’s (MIF) capitalization and potential sectors for investment.
In a statement on Thursday, the Department of Finance (DOF) said the MIC held its first meeting on January 3, 2023 during which the state-owned firm’s Board of Director approved the presented company’s capitalization scheme amounting to P125 billion.
The amount represents the initial capitalization of the MIF which was sourced from state lenders Land Bank of the Philippines and Development Bank of the Philippines, as well as contributions from the national government coming from declared dividends of the Bangko Sentral ng Pilipinas, its share from PAGCOR income, and other sources such as royalties.
Relatedly, MIC president and chief executive officer Rafael Consing Jr. presented the potential sectors where the MIF can be invested, namely infrastructure; oil, gas, and power; agroforestry industrial urbanization; mineral processing; tourism; transportation; and aerospace and aviation.
The said sectors were seen to achieve the MIF’s goal for multigenerational commercial, economic, and social development value creation.
In his opening remarks during the meeting, Finance Secretary Benjamin Diokno, who chairs the MIC, said the company looks forward to fully operationalizing the MIF.
“I look forward to your cooperation and support as we work together in mobilizing greater investments in the country’s growth-enhancing sectors, while upholding the highest standards of accountability, fiscal responsibility, and good governance,” he said.
Established under Republic Act (RA) No. 11954, the MIC serves as the sole vehicle responsible for mobilizing and utilizing the MIF for investments in transactions aimed at generating optimal returns on investments.
The DOF said investments in the fund will be used to fast-track the implementation of the Philippines' 197 high-impact infrastructure flagship projects (IFPs) worth about P8.7 trillion.
The MIF is also in line with the Marcos administration's Eight-Point Socioeconomic Agenda for poverty reduction and Philippine Development Plan (PDP) 2023-2028 for deep economic and social transformation.
The MIC is composed of nine members led by Diokno sitting as the chairperson in an ex-officio capacity and Consing as vice chairperson.
Other members include Land Bank president and CEO Ma. Lynette Ortiz, Development Bank of the Philippines (DBP) president and CEO Michael de Jesus, and MIC directors Vicky Castillo Tan, Andrew Jerome Gan, German Lichauco, and Roman Felipe Reyes.
Nominations, committees
During the meeting, the DOF said the MIC Board called for nominations for chairpersons of the committees in accordance with Sections 21 and 26 of RA 11954.
Consing nominated Reyes to head the Audit Committee, while Tan was nominated to lead the Risk Management Committee.
The Board also approved the creation of additional Committees and Consing nominated the following to serve as chairpersons: Gan for the Investment Committee, Lichauco II for the Corporate Governance and Ethics as well as Related Party Transactions Committees, Tan for Nomination and Remuneration Committee, and himself for the Executive Committee.
Meanwhile, the Board likewise approved the appointment of the Bureau of the Treasury (BTr) as the Interim Fund Manager of the MIC.
Consing also updated the Board on start-up activities such as staffing and recruitment for the MIC and the hiring of its management team.
Also present during the meeting was the Fund’s Advisory Body, which is composed of the Secretary of the Department of Budget and Management (DBM) represented by Undersecretary Leo Angelo Larcia and Treasurer of the Philippines Sharon Almanza.
The Advisory Body is tasked to guide the Board of Directors in the formulation of general policies related to investment and risk management.
The next MIC Board Meeting is scheduled to convene in the fourth week of January 2024, the DOF said. —KBK, GMA Integrated News