Sunday 6 August 2023

They’re still clinging to that “fundless” fund whatever it takes

They’re still clinging to that “fundless” fund whatever it takes


This note wouldn’t be surprised that as the current administration continues to cling to this fundless fund of theirs that this may also serve as a biggest source of corruption in the country’s history. By having it not open to public scrutiny, both the final text of the law as well as the operations and investment decisions of the officers involved in this “sovereign wealth fund” will always raise concerns especially over conflicting provisions and potential legal and constitutional issues.

How come? Other than it is signed by the current administration prone to corruption and crony capitalism, the Maharlika Investment Fund, being “fundless” and “shouldered by loans”, has to depend on funds from state-owned banks and corporations despite the fact these agencies having limited funds for its intended clients to begin with. 

In an instance, the Philippine Chamber of Agriculture and Food Inc. worried as while Development Bank of the Philippines and the Land Bank of the Philippines have limited access to its intended clients, will contribute to the fund itself- and that interprets as directing funds away from agriculture and other important needs. 

Even the Church, the academe, and Civil Society expressed disapproval on the controversial fund and suggested that whatever funds are to be allotted to it would better serve Filipinos by strengthening existing poverty alleviation programs of the government. 

There are other groups that also expressed concern  in that sovereign wealth fund Marcos and his circle bragged about, as businessmen and economists still find the newly-passed law as having a “lack of clear focus” if not questioning its intentions, particularly its target to finance development projects, saying it may “render redundant” existing government programs; if not seeing “vague” about expected financial and economic returns.

To cut this thought short, seeing that controversial law being signed by the president shows that the administration doesn’t mind about the sovereign while claiming that the fund is meant for “them”. The funds meant to invest in that entity will always be coming from the working public, and really concerning that these might go to waste if mismanaged. Is the Santiago principles enough to prove that the sovereign wealth fund be managed properly? Not even, especially when people, the very sovereign who’s worried about their taxes and savings as sources of funds, wanted sound good governance and development strategies as well as having people’s participation and support- and these are seemingly absent in this current situation. 
Apologists of the fund, however, may still cling to their thought that the fund meant chances of making the country not to depend on international loans, if not a panacea for the ever-yearning for “nationl development” - despite the fact that the fund itself also includes those from borrowings both local and abroad. Even the President’s certification of the bill as urgent despite the absence of a public emergency or calamity as countered by that of the recent pandemic and global events being necessitated for “urgent action” even with lack of surplus funds from the national budget nor having responsible managers to begin with.        

Again, as said in earlier writeups concerning this “fund”, that amid rising prices, low wages, acute joblessness, rural dislocation and economic dispossession, seeing the Marcos regime prioritizing their own interests as well as that of his cronies and their foreign partners as a mockery of the promises being said to the people the way it downplays the truth the country experiencing inflation as “not that high” if not failing to fulfill making 20 pesos for a kilo of rice.