Diokno as Maharlika Corp. prexy? ‘It’s speculations,’ says Finance chief

Finance Secretary Benjamin Diokno dismissed as mere speculations a report saying he will be heading the Maharlika Investment Corporation (MIC).

In his weekly briefing with the Finance press corps, Diokno was asked to comment about a report that claims he is being considered as president and chief executive officer of the MIC.

In response, the Finance chief said, “I don’t comment on rumors, that’s it. Speculations.”

A report by Bilyonaryo.com, citing a source, claims that Diokno will be replaced by Senator Ralph Recto at the Department of Finance and that he is being considered to lead the MIC.

MIC is the government-owned company that will manage the Maharlika Investment Fund, a pool of funds sourced from state-run financial institutions that will be invested in high-impact projects, real estate, as well as in financial instruments.

The law creating the MIF was signed into law in July, while its implementing rules was released late August.

The government is now accepting applications and nominations for MIC’s Board of Directors, composed of president and CEO, two regular directors, and three independent directors.

Applications will be accepted until September 27.

Also members of the MIC’s Board are the Finance secretary, who will serve as the ex-officio chairperson, and the presidents of Land Bank of the Philippines and Development Bank of the Philippines.

The Landbank and DBP have already remitted their mandatory contributions of P50 billion and P25 billion, respectively, as initial capitalization of the MIF.

The Finance Department earlier said it expects the P75-billion initial investment from the state-run banks to yield earnings at 6% interest rate annually. 

Diokno was caught in the spotlight after he admitted that the economic team was not consulted on the price ceilings for regular milled and well-milled rice varieties.

The issue allegedly triggered Finance Undersecretary Cielo Magno's exit, after she supposedly criticized the imposition of the rice price ceiling. Malacañang had said the termination of her appointment was “expected,” saying she “clearly does not support the administration and its programs for nation building.”

The Finance chief, later on, said that the economic team was supportive of the price cap on rice.  — BM, GMA Integrated News