Marcos Jr. suspends Maharlika Fund implementation

MANILA, Philippines — President Marcos yesterday suspended the implementation of the sovereign wealth fund or Maharlika Investment Fund (MIF) to further study its implementing rules and regulations (IRR) and ensure that safeguards are in place “for transparency and accountability.”

“Upon the directive of the President, the treasurer of the Philippines, in coordination with the LBP (Land Bank of the Philippines) and DBP (Development Bank of the Philippines), is hereby directed to suspend the implementation of the IRR of RA (Republic Act) No. 11954,” Executive Secretary Lucas Bersamin said in a memorandum dated Oct. 12.

Budget Secretary Amenah Pangandaman told The STAR that the President’s economic team will abide by his decision to suspend the MIF’s implementation.

Finance Secretary Benjamin Diokno, who will chair the Maharlika Investment Corp., has yet to comment on the suspension.

The controversial Maharlika Investment Fund Act of 2023 was signed into law on July 18 and its IRR was issued on Aug. 28.

Last month, sovereign wealth fund critics challenged the legality of the measure before the Supreme Court (SC), arguing it was not duly enacted in accordance with the Constitution.

Solicitor General Menardo Guevarra yesterday said his office is preparing to defend the MIF before the SC.

“If they (petitioners) don’t (withdraw) and the SC does not suspend the proceedings either, the OSG will be prepared to submit its comment on the validity of the MIF law,” Guevarra told reporters.

The SC had ordered the government to comment on the petition filed by Sen. Aquilino Pimentel III and former Bayan Muna party-list lawmakers.

The petitioners argued that the MIF should be declared unconstitutional as its passage “bypassed” the constitutionally mandated legislative process.

The test of economic viability, as required by the Constitution, was also not complied with and the MIF violated the central bank’s independence, the petitioners added.

Albay 1st District Rep. Edcel Lagman yesterday said that Marcos should suspend the “entire implementation” of Maharlika, as it was enacted with “inordinate alacrity without adequate and searching studies from the President’s economic