President Ferdinand Marcos Jr. has issued a directive to suspend the Implementing Rules and Regulations (IRR) of the Maharlika Investment Fund (MIF). This decision was announced on Wednesday, following a bill signing at Malacanang Palace. The memorandum was dispatched to financial institutions such as the Bureau of Treasury, Land Bank of the Philippines (LBP), and Development Bank of the Philippines (DBP), instructing them to notify all relevant government departments and corporations about this halt.
This move follows Marcos’ previous decision to reduce LBP’s government deposits from 50% to 0% for 2022 earnings, after LBP’s PHP50 billion contribution towards MIF’s capital for compliance with capital adequacy requirements. Both LBP and DBP are due to contribute PHP75 billion to Maharlika Investment Corporation’s capital, with MIF projected to be fully operational by the end of 2023.
The suspension is intended to scrutinize MIF’s IRR and ensure safeguards for transparency and accountability. Despite these arrangements, MIF has faced criticisms from opposition lawmakers like Rep. France Castro and economists for being rushed, flawed, and potentially misuse-prone. A Supreme Court petition was also filed in September to declare Maharlika unconstitutional.
Signed into law on July 18, 2023 after its proposal in November 2022, this fund marks a first for the Philippines. It is aimed at fostering fiscal stability through strategic investments in various sectors. Finance Secretary Benjamin Diokno will chair the fund, with LBP and DBP CEOs also taking positions.
Marcos Jr.’s decision to suspend the IRR of MIF comes ahead of his scheduled trip to Saudi Arabia where he intends to present the Maharlika Fund to the Kingdom’s business community.
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