THE Philippine Amusement and Gaming Corporation (Pagcor) is eyeing to contribute at least P3.6 billion and as much as P4 billion to the newly-created Maharlika Investment Fund (MIF) next year.
Pagcor Chairman and Chief Executive Officer Alejandro Tengco told the House Committee on Appropriations’ hearing on the proposed P5.768 trillion national budget for 2024 that if his appreciation of the newly-signed MIF law is correct, Pagcor has to contribute 10 percent of the amount that it remits to the national government annually, which is 50 percent of its income.
“So, if we’re looking at P36 to 40 billion of Pagcor contribution to the national treasury for 2024 and if our interpretation is correct, we will be able to contribute anywhere between P3.6 billion to P4 billion to the Maharlika Fund,” he told the panel, responding to a query of Baguio City Rep. Mark Go.
Tengco said he has sought clarification and guidance from the Department of Finance (DOF) on the issue.
He said Pagcor also needs to be clarified if it can draw investible funds for the MIF from its retained earnings.
Under RA 11954, or the Maharlika Investment Fund law, government financing institutions will pool together non-debt financial resources and invest it in a wide range of investments projects that would generate bigger returns such as foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, joint ventures, mergers and acquisitions, real estate and high-impact infrastructure projects, and projects that contribute to the attainment of sustainable development.
The MIF’s initially funding would come from the dividends of the Land Bank of the Philippines (P50 billion), the Development Bank of the Philippines (P25 billion), and the national government (P50 billion), which would be funded by the dividends of the Bangko Sentral ng Pilipinas (BSP), Pagcor and government offices.
The MIF is seen to optimize national funds by generating returns to support the administration’s economic goals was set under the Medium-Term Fiscal Framework (MTFF), the 8-point Socioeconomic Agenda, and the Philippine Development Plan (PDP) 2023-2028; provide the government with a long-term source of income that will support generations to come, and ease the burden on the national budget by providing additional funding for other priority projects of the government.
