SEN. Francis Escudero yesterday said proponents of the controversial Maharlika Investment Fund (MIF) still have a lot of kinks to iron out in the proposed measure before the Senate approves it.
In an interview with ANC, Escudero said he recently met with the government’s economic managers “outside the four corners of the Senate” to clarify unclear provisions of the administration’s pet legislation, but “there are still a lot of questions left unanswered.”
He said one of his concerns was the seed money that would come from the Land Bank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP), which is projected to reach P150 billion.
“They’re getting money from Landbank and DBP separately and yet they plan to merge it. Which will come first?” Escudero said.
Likewise, he said that Landbank and DBP putting in their funds to one corporation like the Maharlika Investment Corporation, the corporation which will be created to manage the MIF, will violate the Single Borrower’s Rule “that it’s too much to lend to one entity.”
“A hundred billion pesos being lent to one corporation, even if it’s government-created, will violate the Single Borrower’s Rule. So, will the Bangko Sentral look the other way?” he asked.
Escudero also said: The main reason behind it is, wika nga sa Ingles na kasabihan (there is a saying in English that goes), ‘You don’t put all of your eggs in one basket.’ Kapag bumagsak ‘yung korporasyong ‘yan, baka dumapa yung bangko (When that corporation collapses, the banks will also collapse). So, I don’t know how the Bangko Sentral will look at that as well.”
“Can a bank actually lend or invest in a single corporation to the tune of a hundred billion pesos? What percentage of that is the loanable amount or investible funds of both Landbank and DBP? And for sure, as I said, it will violate the Single Borrower’s Rules of the Bangko Sentral and the Monetary Board,” he added.
Escudero said proponents of the proposed measure have remained firm that the MIF cannot be invested in infrastructure projects, a position that he has been opposing since such investments can earn profits and dividends for the sovereign wealth fund.
The senator from Sorsogon also questioned the plan to buy back the National Grid Corporation using the MIF, saying this could send a wrong signal “if you are utilizing this corporation to nationalize certain private corporations and endeavors.”
“It won’t go well for the country, if that’s the intended strategy. So, we plan to clarify that,” he said, adding that economic managers should likewise “provide clear parameters as to what the corporation (MIC) and the fund (MIF) can do and invest in so that it’s clear from the start.”
“So, these things still need to be ironed out before we approve the bill,” Escudero said.
