Pimentel slams Marcos plan to take up 'Maharlika Fund' at WEF meet

Senate Minority Leader Aquilino Pimentel III on Sunday criticized President Ferdinand Marcos Jr.'s plan to present the proposed sovereign wealth fund at the World Economic Forum (WEF) meet in Davos, Switzerland this week.

In a statement, Pimentel described the plan as a “ploy to force the Senate into passing the controversial Maharlika Investment Fund bill.”

“It is more than a marketing strategy, it’s a move to tie the hands of Congress, particularly the Senate, on the controversial measure,” Pimentel said.

Foreign Affairs Undersecretary Carlos Sorreta earlier said that Marcos will bring up the sovereign wealth fund during the World Economic Forum (WEF) scheduled from January 16 to 20.

Sorreta said it was the President's idea to tackle the wealth fund, which seeks to maximize the investible funds of state-run financial institutions and ultimately increase public funds for nation-building.

He added that global and business leaders would directly hear from Marcos the fundamentals about the sovereign wealth fund.

However, Pimentel said that the administration should  be “cautioned” against promoting the yet non-existing Maharlika Investment Fund bill at the WEF.

“It is too early, too premature,” the Senator said. “Sigurado ba silang lulusot sa Senado yang Maharlika Investment Fund bill?”

Moreover, Pimentel said he is worried that “the move would only put pressure on the Senate to enact the measure swiftly” at the expense of more pressing legislation.

Pimentel's opposition 

Senator Pimentel reiterated his opposition to the measure, saying the fund is “prone to abuse and corruption similar to what happened in Malaysia.”

He also expressed concern about the “lack of transparency mechanisms”, stressing that the management of billions of funds “would be left entirely to the board.”

“Instead of focusing our limited resources on the Maharlika Investment Fund bill, let’s debate on legislation that will improve the lives of our countrymen, control inflation and create opportunities,” the Senator said.

Socioeconomic Planning Secretary Arsenio Balisacan earlier said he believes that the establishment of a sovereign wealth fund is appropriate despite the risks of a global recession and high interest rates.

"The participation of funds like this as a vehicle for attracting resources is, I think, appropriate at this time," he said when asked if the economic conditions, given the looming global recession and high interest rates, were appropriate to establish the Maharlika Investment Fund, which could be tapped to finance the country’s economic development in the future.

The House of Representatives already approved on final reading House Bill 6608, which creates the Maharlika Investment Fund (MIF) that was certified as urgent by the President.

The measure that seeks to create the MIF states that it 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. —LBG, GMA Integrated News