President Ferdinand Marcos Jr. has temporarily suspended the implementation of the controversial Maharlika Investment Fund, pending a thorough examination of its Implementing Rules and Regulations (IRR).
In a memorandum dated October 12, addressed to the Bureau of Treasury, Land Bank of the Philippines (LBP), and the Development Bank of the Philippines (DBP), Marcos instructed the suspension of the direct execution of the MIF. The aim is to ensure that the fund’s objectives contribute to the country’s development, with robust measures in place for transparency and accountability.
The memorandum stated, “With reference to the IRR of RA No. 11934, and upon the directive of the President, the Treasurer of the Philippines, in coordination with the LBP and DBP, is hereby DIRECTED to suspend the implementation of the IRR of RA No. 11954 pending further study thereof, and to notify all concerned heads of departments, bureaus, offices and other agencies of the executive department, including GOCCS, of such action.”
This suspension order followed Marcos’s decision to reduce LBP’s government deposits from 50% to 0% for 2022 earnings. This move occurred just weeks after the state-run bank contributed P50 billion as part of the fund’s capital.
The fund injection was intended to ensure LBP’s compliance with the capital adequacy requirements set by the Bangko Sentral ng Pilipinas.
Both LBP and DBP are set to infuse a total of P75 billion pesos into bolstering the capital of the Maharlika Investment Corporation, in accordance with the fund’s IRR.
Finance Secretary Benjamin Diokno, slated to take on the role of chairman as stipulated in the IRR, announced that the MIF is expected to be fully operational by the end of 2023.
The Chief Executive Officers of both state-run banks, LBP and DBP, are also poised to assume positions in the fund.
Source: PhilNews24 | October 18, 2023
