Metro Manila (CNN Philippines, January 23) — The government can tap a state-owned company that deals with activities like the proposed sovereign wealth fund, Senior Deputy Minority leader Paul Daza said on Monday.
Citing a conversation with former Finance Secretary Carlos Dominguez, Daza said he agreed that the government can invest in key sectors and help fund priority programs under existing mechanisms.
“The president now can tap a GOCC (government-owned and controlled corporation) that’s similar to what the Maharlika (Investment Fund) wants to do and that’s the National Development Company (NDC) which was created 100 years ago,” Daza told CNN Philippines’ The Source.
“It’s been amended, there’s been many executive orders but essentially the National Development Company chaired by the secretary of DTI (Department of Trade and Industry) has the legal personality to basically do what the president wants to do, to be able to invest, borrow and all of that,” he added.
The NDC was established in 1919 under Legislative Act 1248.
“NDC is the Philippine’s leading state-owned enterprise investing in diverse industries, serving as an effective catalyst for inclusive growth,” its website read.
The chairman of its board of directors is Trade Secretary Alfredo Pascual, with the secretaries of finance, energy, environment, and budget, as well as Development Bank of the Philippines chairman as some of its members.
In the proposed Maharlika fund, the secretary of Finance will sit as chairman of the board. There will be six regular members representing the contributors to the fund, and five independent directors from the private sector.
Albay Rep. Joey Salceda, who is part of the four-man panel who “re-engineered” the bill, said last week this version of the Maharlika fund will drop the dividends from the Bangko Sentral ng Pilipinas as capital source.
This will be funded by surpluses from GOCCs before it is listed on the Philippine Stock Exchange and conduct an initial public offering.
