The Department of Finance (DOF) on Monday expressed full support to the

amendments on the Implementing Rules and Regulations (IRR) of the Maharlika

Investment Fund (MIF) Act.

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In a statement, DOF Secretary Benjamin Diokno added that oversight and risk
management bodies will be created for the MIF.

“In particular, the IRR’s emphasis on ensuring the independence of the Board of
Directors of the Maharlika Investment Corporation (MIC) allows it more headroom to
form credible oversight and risk management bodies while upholding the highest
standards of effective fund management," he said.

Malacañang released on Saturday the MIF's revised IRR, giving the

president authority to accept or reject nominees submitted by the MIC’s Advisory
Body for positions on the Board.

It also removed the specific advanced educational degree requirements for those who
can be appointed to manage the sovereign wealth fund.

ccording to Diokno, the changes in the IRR are within the bounds of the law and
intended for a strong corporate governance structure.

“Most importantly, this affirms the Marcos Jr. administration’s commitment to see the
Fund off and running by the end of the year and effectively paves the way for the full
operationalization of a well-structured, robust, and effective sovereign wealth fund
that will advance the Philippines’ long-term growth,” he said.

For Diokno, the timing of the finalization of the MIF is favorable as local and
international investors have already signified interest in the MIF, as shown in several
investor promotion engagements.

The Presidential Communications Office earlier called for applications and

nominations for the MIC officers on September 12, 2023. The six candidates include
the MIC president and CEO, two regular directors, and three independent directors.

Several groups earlier expressed concern over the MIF — the Makati Business Club,
the Management Association of the Philippines, and the Philippine Chamber of
Commerce and Industry.
Diokno said then that criticisms of the measure come from those who have yet to read
it in full, as safeguards would be put in place to ensure transparency.

Romualdez, Pangandaman

Speaker Ferdinand Martin Romualdez on Sunday welcomed the revised IRR of the
MIF, saying that these would “protect and guarantee” against “political interference.”

Romualdez said the latest IRR would ensure that the MIF was “managed with the
utmost transparency,” and that the autonomy of the MIC Board would provide for
more “objective and effective decision-making.”

Department of Budget and Management Secretary Amenah Pangandaman likewise

welcomed the release of the revised Maharlika Fund IRR.

"The President earlier assured that the members of the Maharlika Investment
Corporation (MIC) Board, whose primary job is to rule and administer the MIC, its
assets, and investments by law, will have the necessary freedom to oversee the fund
without undue political interventions that will impede its fulfillment of functions,"
said Pangandaman in a Sunday statement.

"I am glad of this development, as this shall allow the MIC Board to have the liberty
and flexibility to fulfill its mandate, and explore beneficial investment opportunities
while adhering faithfully to the letter of the law and ensuring high-impact investments
that are in line with the country’s socioeconomic development policies and programs.
This will also improve accountability, openness, and efficacy in carrying out the law's
provisions," she said.

Given this development, Pangandaman was confident that the MIF would be
functional by the end of this year — on track and consistent with the timeline given
earlier.

It was in July when President Ferdinand "Bongbong" Marcos Jr. signed into law the
Maharlika Investment Fund Act.

"For the first time in the history of the Philippines, we now have a sovereign wealth
fund designed to drive economic development," Marcos said.

"Through the fund we will leverage on a small fraction of the considerable but
underutilized investable funds of the government and stimulate the economy without
the disadvantage of adding additional fiscal and debt burden," he added. —Joviland
Rita/KG, GMA Integrated News

Tags: Maharlika Investment Fund, Benjamin Diokno, Department of

Finance, maharlika investment corporation