Creating wealth

After its initial start got suspended, the stage is now set for the much-vaunted Maharlika Investment Fund (MIF) to finally take off. This developed following the release last week of the implementing rules and regulations (IRR) that were revised upon the imprimatur of President Ferdinand “Bongbong” Marcos Jr. (PBBM). And on Monday, PBBM officially named his adviser on economic and investment affairs as president and chief executive officer (CEO) of the Maharlika Investment Corporation (MIC).

As created by Republic Act (RA) 11954 that PBBM signed on July 18 this year, the country’s first sovereign wealth fund will run as the newest vehicle to bring in more capital to finance major infrastructure and other big-ticket projects in the Philippines. PBBM appointed Rafael Consing Jr., who is currently the executive director of the Office of the Presidential Adviser for Investment and Economic Affairs, as MIC president and CEO for three years.

Under Section 21 of the RA 11954, the MIC Board will be composed of nine members. The Secretary of Finance will serve as the chairperson in ex-officio capacity. Other members of the board are the president and CEO of the MIC, who will sit as the vice chairperson; the president and CEO of the Land Bank of the Philippines (LBP); president and CEO of the Development Bank of the Philippines (DBP); two regular directors and three independent directors from the private sector.

The MIC is expected to have at least P75 billion in paid-up capital this year, with LBP’s P50 billion and P25 billion from the DBP.

PBBM and his economic managers led by Finance Secretary Benjamin Diokno strongly pushed the enactment of the Maharlika law that targeted its implementation before the end of this year. But this did not stop PBBM from suspending the IRR last Oct.12, purportedly to ensure the fund’s objectives are realized for the country’s development, with safeguards in place for transparency and accountability.

The suspension order came a day after Marcos reduced LBP’s deposits to the government from 50 percent to zero percent for 2022 earnings a few weeks after the state-run bank gave P50 billion as a part of the capital of the MIF.

The Palace