Senate Minority Leader Aquilino Pimentel III on Sunday criticized President Ferdinand Marcos Jr.’s plan to current the proposed sovereign wealth fund on the World Economic Forum (WEF) meet in Davos, Switzerland this week.
In a press release, Pimentel described the plan as a “ploy to force the Senate into passing the controversial Maharlika Investment Fund bill.”
“It is more than a marketing strategy, it’s a move to tie the hands of Congress, particularly the Senate, on the controversial measure,” Pimentel mentioned.
Foreign Affairs Undersecretary Carlos Sorreta earlier mentioned that Marcos will carry up the sovereign wealth fund through the World Economic Forum (WEF) scheduled from January 16 to twenty.
Sorreta mentioned it was the President’s thought to deal with the wealth fund, which seeks to maximise the investible funds of state-run monetary establishments and in the end enhance public funds for nation-building.
He added that world and business leaders would instantly hear from Marcos the basics concerning the sovereign wealth fund.
However, Pimentel mentioned that the administration ought to be “cautioned” in opposition to selling the but non-existing Maharlika Investment Fund invoice on the WEF.
“It is too early, too premature,” the Senator mentioned. “Sigurado ba silang lulusot sa Senado yang Maharlika Investment Fund bill?”
Moreover, Pimentel mentioned he’s fearful that “the move would only put pressure on the Senate to enact the measure swiftly” on the expense of extra urgent laws.
Pimentel’s opposition
Senator Pimentel reiterated his opposition to the measure, saying the fund is “prone to abuse and corruption similar to what happened in Malaysia.”
He additionally expressed concern concerning the “lack of transparency mechanisms”, stressing that the administration of billions of funds “would be left entirely to the board.”
“Instead of focusing our limited resources on the Maharlika Investment Fund bill, let’s debate on legislation that will improve the lives of our countrymen, control inflation and create opportunities,” the Senator mentioned.
Socioeconomic Planning Secretary Arsenio Balisacan earlier mentioned he believes that the institution of a sovereign wealth fund is acceptable regardless of the dangers of a world recession and excessive rates of interest.
“The participation of funds like this as a vehicle for attracting resources is, I think, appropriate at this time,” he mentioned when requested if the financial situations, given the looming world recession and excessive rates of interest, have been applicable to ascertain the Maharlika Investment Fund, which could possibly be tapped to finance the nation’s financial improvement sooner or later.
The House of Representatives already permitted on ultimate studying House Bill 6608, which creates the Maharlika Investment Fund (MIF) that was licensed as pressing by the President.
The measure that seeks to create the MIF states that it could be funded by the investible sources of the Landbank of the Philippines (P50 billion), the Development Bank of the Philippines (P25 billion), and the dividends/earnings of the Bangko Sentral ng Pilipinas. —LBG, GMA Integrated News
