Now that it is signed, what’s next?
Amid lack of surplus funds and popular discontent, President Bongbong Marcos signed the act creating the Maharlika Investment Fund into law, the creation of the country’s first sovereign wealth fund.
Surrounded by his allies in congress, Marcos jr. highlighted the creation of the Maharlika Investment Fund as a bold step towards development despite the fact that business groups, academia, economists, opposition lawmakers, and civil society disagreed with the proposition, citing several provisions as problematic, including the use of state pension funds as seed money, and susceptibility to corruption.
Of course, the administration would “heed” and therefore “omit” if necessary certain provisions in the draft just to appease them; but, despite assuring the public about the fund “will be run by finance professionals” to that of “addressing issues on accountability and transparency”, this doesn’t stop the concerned from being critical, especially when another Marcos meant another chances of cronyism and corruption.
But come to think of this, now that the bill is signed into law, what’s next for a sovereign wealth fund that’s having lack of funds in itself? Sovereign wealth funds generally arise out of a country’s surplus revenues — whether from surpluses due to natural resources, trade surpluses, or any other similar sources.
And it is not surprising if the administration would able to “gain funds” initially from government-owned banks, and subsequently from the dividends of the Central Bank, gaming revenue streams from the Philippine Amusement and Gaming Corporation, and other sources, such as royalties and/or special assessments based on natural resources, proceeds from privatization of government assets, and even borrowings.
And in speaking of government-owned banks and other Government Owned and Controlled Corporations, isn’t it that Land Bank of the Philippines should prioritise first the funding of the agrarian reform program and rural development rather than funding that controversial wealth fund? The Philippine Amusement and Gaming Corporation, under its charter would say that it is their duty to help raise funds for the government and may also include that controversial MIF. Even the Central Bank with its surplus dividends would say helpful to subsidise that investment fund- but still, it needs to be surplus.
Yet, why the government’s assurances doesn’t it stop people from worrying aside from possible misuse of public funds, graft and corruption, and mismanagement like what happened in Malaysia and in Nauru? Is their message enough to appease people whose serious and immediate concerns outweigh the administration’s promises and alibis? The lack of clear objectives especially in this still-developing country such as supporting efforts in industrialisation, “green jobs” creation, even agricultural modernisation and supporting improvements in education, science and technology, or even culture and the arts, makes one worrying on the need for a sovereign wealth fund that prioritises the interests of the few using proceeds that meant to be for the many while claiming this would be “for the welfare of the Filipino people.” After all, should investing using people’s funds (whether it is taxes, pension, dividends from state owned financial institutions, etc.) be limited to that of stocks, real estate, among others?
Perhaps alongside the need for prioritising immediate attention and comprehensive solutions to education, healthcare, housing, employment opportunities, and poverty alleviation, the need for a sovereign wealth fund may sound feasible, but since this issue is without even asking from the crisis-marred sovereign (that is, the Filipino people) from the start, it becomes a mockery- especially when having a “fund” that’s without any fund other than borrowings and babblings, and led by bureaucrats who wanted to consolidate their entrenched interests by evenly using people’s funds.
So now that it is signed, what’s next? Folk! Be vigilant in their soonest actions!