Use of SSS, GSIS funds for Maharlika Fund unconstitutional — Carpio

The use of the investible funds of the Social Security System (SSS) and the Government Insurance System (GSIS) for the proposed Maharlika Wealth Fund is unconstitutional, according to retired Supreme Court Justice Antonio Carpio.

In a statement, Carpio said the funds of both the SSS and GSIS are personal contributions of their respective members, along with the counterparts from their employers.

“Thus, the income of SSS and GSIS investible funds must benefit only their respective members. The income of the Maharlika Sovereign Wealth Fund is for the benefit of all Filipinos, including non-SSS and non-GSIS members,” he said.

“The law cannot give the income from SSS and GSIS funds to non-members who did not contribute to the funds. This is taking of private property for a public purpose without just compensation, which is unconstitutional,” he added.

His statement came in response to the Maharlika Wealth Fund as proposed under House Bill 6398, which aims at allowing the government to invest surplus reserves or revenues in real estate and financial assets.

Among the authors of the proposed measure are House Speaker Ferdinand Martin Romualdez, and Ilocos Norte 1st District Representative Ferdinand Alexander “Sandro” Marcos III, cousin and son, respectively, of President Ferdinand “Bongbong” Marcos Jr.

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 SSS is mandated to promote social justice and provide protection to members and families against the hazards of disability, sickness, maternity, old age, death, and other contingencies resulting in loss of income or financial burden.

Meanwhile, the GSIS is mandated to insure all properties, assets, and interests of the government against any insurable risk.

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.

Also among those that raised apprehensions are at least 12 business groups including the Makati Business Club (MBC), the Management Association of the Philippines (MAP), and the Foundation for Economic Freedom (FEF).

Senator Maria Imelda “Imee” Marcos last week also voiced concern that the fund could suffer the same fate as the 1Malaysia Development Berhad (1MDB) which was hounded by graft issues.

For his part, Finance Secretary Benjamin Diokno earlier said criticisms on the measure come from those who have yet to read the measure, as safeguards will be put in place to ensure transparency.

“Maraming mga ganon, nagko-comment na hindi pa nababasa ata ‘yung bill eh, so out of ignorance nagko-comment,” he said.

(There are a lot like this, making comments without reading the bill, so they are commenting out of ignorance.)—Jon Viktor Cabuenas/AOL, GMA Integrated News