Koko renews call for Marcos to veto Maharlika bill

Days after the Palace received the proposed Maharlika Investment Fund (MIF) bill, Senate Minority Leader Aquilino “Koko” Pimentel III has renewed his call for President Ferdinand “Bongbong” Marcos Jr. to veto the measure creating the country’s first sovereign wealth fund.

“Wala pa naman sa balita na napirmahan na ng Pangulo ito kaya may oras pa tayong manawagan sa Pangulo, kay President Bongbong Marcos, na i-veto na lang niya ito,” Pimentel said in The Mangahas Interviews.

On Wednesday, Malacañang confirmed it had received the proposed MIF bill.

President Ferdinand Marcos Jr. had said that he would immediately sign the MIF bill into law once it reaches his office, adding that management will be the key to its success.

“I’ll give him a good reason to veto... Hindi naman niya nakuha ‘yung gusto niya eh,” Pimentel said.

“Una sa lahat, ang gulo eh. Sovereign Wealth Fund tapos ngayon ang ending, actually, ako ‘pag bibigyan ko ng pangalan ‘yung ginawa ng Kongreso [it’ll be] state-initiated investment fund,” the senator said.

He argued that it cannot be categorized as a sovereign wealth fund since the bill allows the private sector and even foreign investors to invest in the MIF.

“Kaming mga against, isa sa aming punto laban diyan ay minadali. So kung i-veto ‘yan, hindi pirmahan, at ibalik that means merong tayong panahon. Hindi lang sana legislators ang nagdi-discuss dalhin na natin sa taumbayan,” Pimentel said.

The Senate minority chief earlier warned Marcos against signing the MIF bill, saying there is a "high chance" that it is unconstitutional. 

Pimentel has been calling for Marcos to veto the measure, noting that it is an “ill-conceived” law as the country has no surplus windfall profits.

The senator had argued anew that the MIF bill is not timely as the world economy and geopolitical situation are bad, and added that this kind of legislation needs more time to be discussed in the spirit of fairness.

Pimentel, in The Mangahas Interviews, floated the possibility that the MIF has a tendency for crony capitalism.

He said that since the company that will manage the fund can invest both in domestic and foreign ventures, there is a chance that the people managing the fund may give preferential treatment to their “friends.”

“Pwede silang may kakampihan. ‘Yan ang danger doon eh. Pwede rin sila sa abroad, pwedeng hindi na natin kilala pero kaibigan pala nila mga broker doon o mga sasalo ng investment nila sa abroad pwede rin dito sa Pilipinas. Eh di crony capitalism,” Pimentel said.

The senator also described the concept of MIF as "confusing" as it can act as a commodity trader, currency trader, an investor in joint ventures, and angel investors.

Early last month, Congress approved the MIF bill with the House of Representatives adopting the Senate version during the bicameral conference committee meeting.

The Senate earlier amended its version by prohibiting state pension and insurance funds from investing in the MIF, a provision that was already provided under the House version approved on the third and final reading last December.

Senate President Juan Miguel Zubiri signed the ratified version of the MIF bill mid-June.

Under the bill, a government-owned company, the Maharlika Investment Corporation, will be established to manage the MIF, 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 MIF bill states that the Maharlika Fund would be created using:

• P50 billion from the Land Bank of the Philippines (LBP)
• P25 billion from the Development Bank of the Philippines (DBP)
• P50 billion from the National Government

The contribution from the national government would come from the following sources:

• Bangko Sentral ng Pilipinas' total declared dividends
• National government's share of the income of PAGCOR
• Properties, real and personal identified by the DOF-Privatization and Management Office
• Other sources such as royalties and/or special assessments

The draft bill passed on the Senate floor provides a 10-year prescriptive period for crimes punishable under the measure, while another section in the same bill provides for a 20-year prescriptive period. —VAL, GMA Integrated News