Maharlika faces risk of fund misuse — Singapore-based think tank

MANILA, Philippines — A Singapore-based think tank raised red flags on the controversial Maharlika Investment Fund (MIF) due to the risk of its potential misuse of funds and lack of accountability.

A 79-page report by the Asean+3 Macroeconomic Research Office (Amro+3) released on November 27 pointed out that Maharlika has not clearly defined its role in infrastructure development which could lead to misuse of funds despite having a “strong legal framework” and a “potential to be successfully managed.”

“The authorities should clearly define its role in infrastructure investment with appropriate governance stipulated to avoid misuse of funds. The MIF should be run by professionals and the board should comprise independent directors,” the report said. 

Despite not having a complete nine-member board of directors, Finance Secretary Benjamin Diokno said on Tuesday that the administration is confident that the MIF will be fully operational before the end of the year. 

Among the board of directors of the Maharlika Investment Corp. (MIC) are three independent directors from the private sector which must be submitted by the MIC’s advisory board to President Ferdinand Marcos Jr. 

At present, MIC President and Chief Executive Officer (CEO) Rafael Consing Jr. stands as the sole presidential appointment on the board. His actions, particularly the revision of MIF’s implementing rules and regulations, have drawn scrutiny from critics due to the removal of educational qualifications required for his position.

Others have highlighted his connection to past fraud cases, a factor that disqualifies an individual from board membership in MIF. Nevertheless, Consing clarified that the cases he was associated with have already been resolved and cleared.

As a former governor of the Bangko Sentral ng Pilipinas (BSP), Diokno currently serves as a member of the MIC's board of directors, holding the position of chairman in his ex-officio capacity as the finance secretary.

The remaining board of director positions consist of two regular directors appointed by Marcos, along with the CEOs of the Landbank of the Philippines (LBP) and the Development Bank of the Philippines (DBP).

The think tank