PBBM suspends implementation of Maharlika fund law

President Ferdinand R. Marcos Jr. signs Republic Act 11954 or the Maharlika Investment Fund Act  in a ceremony at the Kalayaan Hall of Malacañan Palace in Manila on Tuesday (July 18, 2023).(ROLANDO MAILO/NIB-PNA)

By Ruth Abbey Gita-Carlos | Philippine News Agency

President Ferdinand R. Marcos Jr. has ordered the suspension of the implementing rules and regulations (IRR) of Republic Act (RA) 11954 or the Maharlika Investment Fund (MIF) Act of 2023, Malacañang announced Wednesday.

In an Oct. 12 memorandum signed by Executive Secretary Lucas Bersamin by authority of the President, the Bureau of Treasury (BTr), in coordination with the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP), was directed to suspend the implementation of the IRR of RA 11954, “pending further study thereof.”

The memorandum also mandates the BTr to notify all concerned heads of departments, bureaus, offices and other agencies of the executive department, including government-owned or -controlled corporations (GOCCs), about the suspension of the implementation of MIF law.

The memorandum which takes effect immediately was addressed to BTr officer-in-charge Sharon Almanza, LBP president and chief executive officer (CEO) Lynette Ortiz and DBP president and CEO Michael de Jesus.

In a statement, the Office of the Executive Secretary said the directive was to make sure that there will be safeguards to ensure the proper use of Maharlika fund.

“President Ferdinand R. Marcos Jr. issued a suspension because he wanted to study carefully the IRR to ensure that the purpose of the fund will be realized for the country’s development with safeguards in place for transparency and accountability,” it said.

Under RA 11954 inked by Marcos on July 18, the MIF is established to optimize national funds by generating returns to support the Marcos administration’s economic goals laid out in the Medium-Term Fiscal Framework, the 8-point Socioeconomic Agenda, and the Philippine Development Plan 2023-2028.

According to the law, the MIF will be used to invest in a wide range of assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, joint ventures, mergers and acquisitions, real estate and high-impact infrastructure projects that contribute to the attainment of sustainable development.

The BTr issued the IRR of the MIF Act on Aug. 28, following consultations with founding government financial institutions (GFIs), LBP, DBP and the Technical Working Group consisting of the Department of Finance (DOF), Department of Budget and Management (DBM), Securities and Exchange Commission (SEC), National Economic and Development Authority (NEDA), Office of the Government Corporate Counsel (OGCC), and the Governance Commission for GOCCs (GCG).

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