SENATE minority leader Aquilino Pimentel III yesterday said anyone can challenge the constitutionality of the establishment of the proposed Maharlika Investment Fund (MIF) “before the courts.”
Pimentel made the remark when asked by the members of the media remedies are available to stop the creation of the MIF, a sovereign fund that government said will promote economic development by making strategic and profitable investments in key sectors.
“Yes, the Maharlika law can be challenged before the courts. And for those planning to do this, I will make myself available as source of some facts, information, arguments,” Pimentel said.
Senate deputy minority leader Risa Hontiveros said she will support any action “to raise this (MIF) to the Supreme Court.”
“According to Section 16, Article XII of the 1987 Constitution, GOCCs must pass the test of economic viability and our economic experts have raised plenty of arguments that cast doubt on whether the MWF (Maharlika Wealth Fund) has passed or even be subjected to this test,” Hontiveros said.
Hontiveros said she will thoroughly scrutinize the MIF implementing rules and regulations (IRR) to ensure that the prohibitions they put “are not lost.”
The Maharlika fund bill is just awaiting the signature of President Marcos Jr who has certified it as an urgent bill. It was passed by Congress on Wednesday, hours after it was approved by the Senate. Lawmakers did away with the ratification process after the House contingent to the bicameral meeting said the chamber has decided to adopt the Senate version of the measure. The House passed its version in December last year.
The MIF bill, as approved, prohibits the use of funds of the Government Service Insurance System, Social Security System, Philippine Health Insurance (PhilHealth) Corporation, Pag-IBIG, Overseas Workers Welfare Administration, Philippines Veterans Affairs Office.
Under the proposed bill, the MIF will be funded mainly through the Land Bank of the Philippines, Development Bank of the Philippines, and the national government. Additional funds will come from the Bangko Sentral ng Pilipinas’ total declared dividends, the national government’s share from the income of Philippine Amusement and Gaming Corporation (PAGCOR) and properties, real and personal identified by the Finance department’s Privatization and Management Office, among others.
350,00 JOBS
Sen. Mark Villar, sponsor of the MIF bill, gave the assurance the MIF will be beneficial to the Filipino people.
According to the projection of the National Economic and Development Authority, Villar said, once MIF is invested, it will create around 350,000 additional jobs. The MIF, he added, will earn about 8 to 10 percent of its seed money every year.
He said earnings from the MIF will also spare the government from further securing loans in local and international institutions since funds for big-ticket projects, which are normally funded through Overseas Development Assistance, will come from the sovereign wealth fund.
“So sa Maharlika ay makaka-attract din tayo ng investors at imbes na gamitin ang pera ng GAA ay may mag-i-invest so mababawasan ang utang ng gobyerno (The MIF can also attract investors. So, instead of using the funds from the General Appropriations Act, there will be investments coming in which will be used for infrastructure projects),” he added.
Villar said those who will run the MIF will be penalized in accordance with laws, if they mismanage or plunder its funds.
Sen. Sherwin Gatchalian said the President cannot veto certain provisions in the MIF bill if he disagrees with some of them.
Gatchalian said the President can only veto certain provisions of a bill when they are about revenue measures or appropriations in the proposed national budget.
“But for this particular bill, the President needs to return it to Congress if he doesn’t agree with certain provisions of the bill. So, we have to redo everything again,” Gatchalian said.
Gatchalian made the remark after President Marcos said that pension funds may invest in the MIF “if they want to.”
Gatchalian said there is a provision in the bill that pension funds will not be allowed ever to invest in the MIF.
