Hontiveros says investing BSP dividends in Maharlika ‘like committing suicide’

Senator Risa Hontiveros on Tuesday compared creating a sovereign wealth fund with Bangko Sentral ng Pilipinas' dividends amid an unstable economy to committing suicide.

Hontivero thus said at a press conference a day after the MIF bill was sponsored on the Senate floor.

"'Yung ating Bangko Sentral, ide-delay natin by double the time 'yung full capitalization niya. Eh, kung may tumamang ibang economic crisis or economic stresses sa ating ekonomiya na hindi mahirap isipin dahil kung ang US nga eh nababagabag sa mga economic headwinds mula sa mga giyera sa invasion ng Ukraine, etc.," Hontiveros said.

"Kapag tayo pa ang natamaan niyan and then we would have disabled our own Bangko Sentral sa paggamit nya ng mga instruments nya, precisely for times like those. 'Yung foreign exchange rates, 'yung interest rates, etc. Para naman tayong slight na nagpapatiwakal di ba? Bakit natin gagawin yun?" she added.

She said banks that are facing terrible financial strains in the US relied on their central bank to maintain stability.

Hontiveros said that the MIF was more like a "Maharlika Liabilities Fund" as there were no excess revenues that could be used for the sovereign wealth fund.

She said the penalties under the MIF bill against graft and corruption were not enough as the measure did not include jail time for violators.

Tagging the concept of sovereign wealth fund as "premature," Hontiveros said Congress must still "incubate" the bill as the urgent issues as of the moment are inflation, high prices of commodities, underemployment, and Universal Health Care Act implementation, among others.

Meanwhile, Senator Robin Padilla also wanted the MIF bill to ensure more safeguards against corruption.

On Monday, Senate banks, financial institutions, and currencies chairman Mark Villar sponsored the MIF bill at the Senate plenary.

Under SB 2020, the initial capitalization will come from the investible funds of the Land Bank of the Philippines and the Development Bank of the Philippines; dividend remittances of Bangko Sentral ng Pilipinas; national government share of income from Philippine Amusement and Gaming Corporation; and proceeds from privatization and transfer of assets.

To ensure accountability and proper governance of the fund, Villar said SB 2020 includes the following safeguards:

• The board is required to appoint an internal auditor which shall be independent of the MIF management and shall be under the direct control and supervision of the board of directors;
• An internationally recognized auditing firm will serve as the external auditor of the fund;
• The books and accounts of the MIF shall be subject to strict examination by the Commission on Audit;
• A joint congressional oversight committee will be constituted to oversee, monitor and evaluate the proposed MIF Act. It will be composed of five members each from the Senate and the House of Representatives; and
• All documents of the MIF and the MIC shall be open, available, and accessible to the public.

—NB, GMA Integrated News