13 reasons why WE OPPOSE House Bill 6398 (Maharlika Investment Fund/PH Sovereign Wealth Fund).
1.The bill has no clear and solid provision for ample worker/employee representation in the fund’s governing body, considering that a bulk of the fund will technically come from GSIS and SSS members’ pooled contributions. PERA NATIN ‘YUN PERO WALA TAYONG KINATAWAN!
2. Land Bank and DBP funds will also be used for the fund. That would drastically limit the funds which the said government banks could lend to MSMEs (the backbone of our economy, in terms of jobs creation) and ordinary citizens.
3. GSIS & SSS are able to invest pooled members’ contributions into so many things even without the sovereign fund in place.Bill would only further bloat existing bureaucracy that gobbles up millions if not billions of unnecessary administrative expenses.Bloated bureaucracy = BAD.
4. The bill’s limit on administrative and operating expenses is not good enough. Pera natin, gagamiting pampasarap ng mga burukrata na wala namang alam at walang ginagawang para sa bayan. NO WAY!
5. The bill allows investments on “Financial derivatives”. THESE ARE HIGH-RISK INVESTMENTS! Have they forgotten 2008? For starters, watch “The Big Short” (2015), or listen to Fascinating Aida’s “The Market.” We could lose everything, mind you.
6. The bill’s mention of investments on “Listed or unlisted equities…” and “Joint ventures or co-Investments” may seem innocent but these can actually be used to favor big business interests of corporations with links to ruling dynasties. Remember, wala tayo sa Norway.
7. “Third party fees and all charges incurred in connection with the establishment and management of the MIF” which will be charged to the fund sounds so fishy and unnecessary, especially without ample caps and limitations in the bill.
8. Honoraria and allowances and reimbursements for the fund’s bureaucrats are unacceptable, especially that most of them will certainly come from salaried govt or corporate posts too. Sobrang garapal na ‘yan!
9. The bill has no mechanism to directly give profits to citizens (especially SSS and GSIS members). Profits would instead be channeled to the government financial institutions. And the profits are not even guaranteed ha.
10. As the bill allows the fund to draw from the annual General Appropriations Act or supplemental appropriations, this can possibly reduce available funds for vital social services such as healthcare, education, housing etc.
11. The bill contains no provision to prioritize investments on “green” jobs creation (especially in the renewable energy sector), agricultural modernization, and industrialization, which could potentially limit any real national benefits from the fund’s operations. Para san pa?
12. The bill’s provision on rewards and incentives for bureaucrats is capricious and dangerous without stronger provisions on public accountability of the fund’s administrators. Again, remember, wala tayo sa Norway.
13.The bill is authored by at least two legislators connected to the plunderous dynasty that the Filipino people ousted in 1986. And the same ruling dynasty will have immense power over the sovereign wealth fund for sure. That’s a BIG problem!13.The bill is authored by at least two legislators connected to the plunderous dynasty that the Filipino people ousted in 1986. And the same ruling dynasty will have immense power over the sovereign wealth fund for sure. That’s a BIG problem!
Romualdez co-authored the measure with Deputy Majority Leader Ferdinand Alexander “Sandro” Marcos — the president’s son — and five other lawmakers. Maharlika — a word originally meaning warrior class — is a likely reference to one of the myths created by the late dictator Marcos Sr., who claimed he led a guerilla unit called “Maharlika” during the Japanese Occupation.
Explaining the intentions of Maharlika, Romualdez said the fund would provide an “opportunity to ensure their respective funds’ optimal asset allocation as well as ensure that resources are efficiently channeled to investments that will provide the most value not only to the participating GFIs (government financial institutions) but also to the country.”
If enacted, the bill would order state pension funds Government Service Insurance System and the Social Security System, as well as state-owned lenders Land Bank of the Philippines and the Development Bank of the Philippines to provide an initial investment of P200 billion to Maharlika.
Separately, the government will inject P25 billion to Maharlika, while the Bangko Sentral ng Pilipinas and the Philippine Amusement and Gaming Corp. — the gambling and casino regulator — will also contribute to the fund.
Romualdez said Maharlika could also be used to manage the country’s foreign reserves and bring in job-generating direct investments, citing the success stories of Singapore’s GIC and the Indonesia Investment Authority.
But while the move had been a hit in other countries, there were also cautionary tales of misuse of such funds. At the same time, analysts stressed the importance of creating such funds at the right time and in the right economic conditions.
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