By Farah G. Decano

           

SIMPLY stated, the Maharlika Investment Fund is a collection of mandated amounts from various government financial institutions (GFI) to be managed by a board chosen by the President for investment purposes.  This is similar to the sovereign fund of other countries which is sourced from revenue excesses of selected government agencies.

The purpose cannot be questioned. It is laudable. It is high time that our country looked for possible sources of income.  There are, however, issues that bog the minds of the public regarding the MIF.

One controversy that must be addressed is economic in nature. Our ballooning debt is not a secret. Our trade deficits have widened even more to $4.2 Billion this month.  The prices of the fuel, including onions, have not stabilized. Given the tight financial situation that the Philippines is in, is it optimal for our government to allocate a portion of these limited resources for activities that are risk-inclined?

Say, the Maharlika Investment Fund amassed from the Land Bank around P20 Billion pesos as the latter’s contribution, is it better for our country to engage in speculative businesses than allow Land Bank to apportion the same for farmer’s programs per the bank’s corporate purpose? In other words, by allowing the MIF to push through, aren’t we depriving the agriculture sector of its source of assistance in the future?  What is the impact of this removal of monetary crutch to our farmers?

This brings us to a collateral issue.  What is the basis for choosing the GFIs that would fund the MIF?  Are these agencies underperforming and, thus, must be ordered to give up their extra resource?  Can’t their operations be improved so they could still keep their money and attain their institutional objectives?

The next question in the minds of the public is political.  Do we trust President Ferdinand Marcos with what he says he will do with the fund?

Can citizenry be faulted if they think that the Maharlika Investment Fund may turn out to be diminishing funds with those in control of such sums asking for commissions in every investment?

For one, under the proposed bill, the power to handle the said investment finances is given to a board which is much less in number than the members of Congress. Instead of the usual public deliberations on what to do with the budget, the discussion will be conducted in a board room where there are usually less than fifteen decision makers.  Somehow there is a cloak of mystery as regards the processes. Baka maging “sila-sila” lang ang may alam.  To make matters more suspicious is the fact that most, if not all, of the members of the board are possible appointees of the President.  Unlike members of the Congress who have their own mandate, the board of directors may turn out to be submissive to the wishes of one all-powerful appointer.  They may turn out to be presidential dummies who are willing to convert the MIF to a majica fund.

Another concern is that the bill establishing the MIF does away with the procurement law. This means that purchases and acquisitions using said monies need not undergo the usual bidding process. The amounts in this kitty fund for investment is not a kitty at all. It is actually a mammoth! With huge sums in the hands of a few, we cannot let our guards down.  We are talking about the money of the Filipino people after all.

The proposed bill has passed the lower house in a fast clip. I hope the Senate considers these questions and be more circumspect in enacting the bill into a possible law.

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