Metro Manila (CNN Philippines, July 18) – To prevent losses, Senate President Juan Miguel “Migz” Zubiri said Congress will use its oversight function to stop the Maharlika Investment Fund from being placed in high-risk investments.
Zubiri made this statement during Tuesday’s Kapihan sa Senado media forum, hours after President Ferdinand Marcos Jr. signed the Maharlika Investment Fund Act, a controversial measure aimed at creating the country’s own sovereign wealth fund with a seed money of ₱125 billion.
Under the law, the Maharlika Investment Corporation (MIC), which will manage the fund, \”shall make quarterly confidential submission” of all planned investments to the Joint Congressional Oversight Committee, composed of seven members each from the Senate and the House of Representatives. Zubiri said once the JCOC is convened, it can look into the list of projects the MIC plans to invest in.
“Pwede naming i-question kung bakit ito yung mga projects na gagawin ninyo sa pondong ito,” Zubiri said.
[Translation: We can question why the Maharlika fund will be used for these projects.]
For Zubiri, the MIC should limit its ventures to public infrastructure projects with high return on investment, such as toll bridges. It would be good to invest in the National Grid Corporation of the Philippines and some blue-chip companies, Zubiri said, but stressed that the MIC should avoid the stock market and startup companies.
“There’s always a risk in any fund,” Zubiri said.
“Kung tanungin ninyo ako, may oversight function naman ang Senado’ t Kongreso, hindi ako papayag na ilagay niyo iyan sa stock market dahil yung stock market, taas-baba, taas-baba right now,” he said.
“I will discourage them from coming up with investments into startup companies. Kasi ika nga startup nga ‘yan, delikado,” he added.
[Translation: If you ask me, since Congress has oversight function, I will not allow investments to the stock market because of how volatile it is right now — I will discourage them from coming up with investments into startup companies. Because these are startups, it would be risky.]
However, asked if the JCOC can block the MIC from investing in certain projects, Zubiri said it can only recommend. The final say is with the nine-member Board of Directors of the MIC led by the Finance Secretary and guided by an advisory body composed of the country’s budget secretary, economic and development chief, and national treasurer.
The Senate minority on Tuesday reiterated their strong opposition against the measure. Minority Leader Aquilino \”Koko\” Pimentel III said it should be challenged before the Supreme Court.
\”Today is a sad day in the history of our country, as the State through the Maharlika Investment Fund will be engaging, unjustifiably, in an economic activity (risky investing) which is best left to the private sector,\” he said in a statement.
