OPPOSITION Rep. France Castro (PL, ACT Teachers) yesterday slammed the proposal to tap mining royalties and proceeds of public borrowings as sources of funding for the proposed Maharlika Investment Funds (MIF), saying it would be disadvantageous to the public particularly indigenous people (IP) communities.
In her interpellation on House Bill No. 6608 Tuesday night, Castro noted that many mining and mineral exploration activities fall within the ancestral lands of indigenous Filipinos, hence their interest would be adversely affected if such funds are funneled into the MIF.
Manila Rep. Irwing Tieng, chairman of the House committee on banks and financial intermediaries, who sponsored the bill on the floor, initially said the royalties referred to in the bill pertains to oil exploration and similar resources but later acknowledged that fees paid for mining rights and extraction permits also fall in the same category.
Asking point blank, Castro said: “Yung royalties na dapat napupunta sa mga katutubo, kukuhanan nyo po ba? (What about the mining royalties that are supposed to go to the indigenous communities, will those be included?)
Tieng replied that the final version of the bill is still being crafted and the authors are willing to make the necessary amendments.
Pressed for a definite answer, the sponsor assured Castro that royalties paid for mining and exploration activities in ancestral domains would be excluded.
“Hindi mababawasan ang mga ibinibigay para sa ancestral lands. Inuulit ko po, tumatanggap po tayo ng mga amendments (The royalties for the use of ancestral lands will not be diminished. We will make the necessary amendments.),” he said.
Castro also hit the suggestion to use public borrowings for additional funding for the MIF, as she warned that this will create additional burden for ordinary taxpayers.
“It says here on page 5, line 29, ‘public borrowing’ is in the list. Does this mean we will borrow money to put in as investment? This is very risky because it transfers the obligation to the taxpaying public,” she pointed out.
The lawmaker said that in the proper time, she will ask that both the mining royalties and public borrowing be removed from the bill.
“Pumapayag po ang mga authors natin kung ano po ‘yung proposed amendments (Our authors are amendable to making the required amendments.),” Tieng said.
Castro likewise challenged the validity of tying down the dividends from the earnings of the Bangko Sentral ng Pilipinas (BSP), noting that the resource had proven crucial in the national government’s response to the global health crisis caused by the COVID-19 pandemic.
She noted that BSP’s investment in the MIF, even if it earns, would likely be tied up for at least five years hence such fund resource would not be available for the government in the event of another major emergency, including an economic downturn.
Tieng replied that the BSP’s exposure had been well considered by its officials, including factoring in risks and the investment turnaround time.
“BSP is in full support of the MIF. I would also like to add that 20 percent of the projected earnings of the MIF will be automatically allocated as social welfare fund. That was already included in the bill as an amendment,” Tieng said.
MAJORITY SUPPORT?
Tieng estimated at least 200 lawmakers will support the measure.
“I cannot confirm pero (but) based on the advice of my committee secretary, it’s around 200,” Tieng told ANC in an interview, adding: “Last time I checked… it was 80 from three committees… three committees (so) that’s around 20 plus members per committee, so around 80 co-authors but they were saying as of yesterday (Monday) evening it was around 200.”
For a bill to prosper in the House of Representatives, it needs the support of a majority – or at least half of the 312 congressmen plus one.
Tieng expressed confidence that more of their colleagues in the House now understand the bill, as he downplayed the impact of President Marcos’ open endorsement of the bill.
“Not really…. I think masasabi ko lang po siguro mas naiintindihan na nila ‘yung bill ngayon (I think that more congressmen understand the bill now). Maybe that’s why they are supporting the measure,” he said.
He also said there was no political pressure to approve the bill. “Nobody ordered me to take this up. It was sent to my committee, so we studied it and we put safeguards,” he said.
Tieng reiterated the proposed sovereign wealth fund would be “safe,” as safety nets have been put in place to ensure it would not be misused in the future.
The House began plenary deliberations on the Maharlika bill late Monday. It was scheduled for second reading approval last night, but this was suspended as the bill continued to be interpellated by opposition congressmen.
Congress is scheduled to adjourn this week for its month-long holiday break.
