An in-depth study by the Asian Central Journal or ACJ dated 20 July 2023 reveals that the Department of Finance forged a $1-million contract with a US PR firm, Weber Shandwick Philippines or WSP, that was signed in early January 2023, according to WSP sources.
The ACJ study asks why the Maharlika Investment Fund or MIF bill was signed at the precise time Senate President Juan Miguel Zubiri was in the US.
“On 21 June, Senate President Zubiri reportedly signed an ‘enrolled’ copy of the MIF. Jose Manuel Romualdez, the Philippine ambassador to the US, was present for the signing. Ambassador Romualdez has long held the positions of chairman and CEO at WSP.”
The ACJ study reports that, “The US was designated as the top campaign market in the PR strategy to draw US investment” and that “the MIF might be used by the US as a means of financial pressure on the (Philippines).” In other words, US funds for the MIF may be used as bait for the US to get major MIF projects in the future.
The study says the WSP PR strategy aims (1) “to decrease misconceptions about the MIF, particularly those pertaining to abuse and corruption” (downplaying corruption helps fuel it); (2) “to raise awareness of it as an instrument for economic development” (sanctifying corruption as ‘economic development’); and (3) “MIF management and investment may be subject to US intervention. DBM Secretary Amenah F. Pangandaman stated on 19 April that several US corporate organizations and investors are eager to assist us in structuring the MIF.”
This dangerous move towards achieving US corporate funds for the MIF will easily increase corruption tenfold, with the participation of US corporations. This was the strategy of US oil firms in Nigeria in partnership with a corrupt government to siphon the oil for the West. The US corporations turned a blind eye to the corruption. The strategy triggered the growth of terrorists in the Muslim-dominated deep north which did benefit from the “development” received by the Christian-dominated south.
The ACJ report, citing the MIF, warns, “There looms a grave concern: the specter of corruption.” It cites two cases. “Norway’s sovereign wealth fund lost $174 billion (about P8.7 trillion) in the first half of 2022, while (the Singapore-based) Temasek Holdings, which is primarily regarded as a sovereign wealth fund, has seen a net loss of S$7.3 billion throughout the nearly 50 years since its founding.”
If less corrupt-prone affluent nations like Norway and Singapore are unable to contain corruption in sovereign wealth funds, what more a Third World nation like the Philippines, which is noted for rampant unstoppable corruption?
In its 2020-2022 survey, the Philippines ranked no. 116 out of 180 nations (the higher the ranking, the more corrupt) in the Corruption Perceptions Index published by Transparency International. Norway ranked No. 4 and Singapore No. 5 as least corrupt. (Source: Wikipedia).
The MIF Act provides that a Maharlika Investment Corporation or MIC will be established to manage the MIF fund. The ACJ study is concerned that the MIC board of directors will consist of presidential appointees “based on favor rather than talent… in a nation where nepotism is rife.” (Ambassador Romualdez is the second cousin of Marcos Jr. It’s all in the family.) This will induce a “lack of transparency in regulation and a high risk of financial embezzlement.”
The ACJ study argues that “the MIF could be a weapon for politicians to steal from the public coffers,” citing the case of Angola. In 2018, Jose Filomeno dos Santos, ex-sovereign fund chairman and son of ex-President Jose Eduardo dos Santos, was charged with the theft of $1.5 billion. In 2015, the Wall Street Journal reported that Malaysia’s Prime Minister Najib Razak transferred about $700 million from the 1Malaysia Development Berhad fund to his personal account.
The ACJ study reports that Goldman Sachs Group Inc. raised $6.5 billion in five years. In an investigation after the 1MDB scandal broke out, Goldman Sachs admitted stealing $1 billion from 1MDB “to bribe officials in Malaysia and other nations, including (payments) for the extravagant lifestyles of Malaysian officials and purchasing luxury yachts and hotels for them.” Goldman Sachs pocketed $4.6 billion in bribes and kickbacks. Ex-Goldman Sachs banker Roger Ng was sentenced to 10 years in prison for his role in the massive 1MDB heist.
It will be easy for creative Filipino politicians to improve on this type of ‘Financial Terrorism’ with the help of equally corrupt Western corporations. They must be drooling in excitement. This evil partnership of government and multinationals is the biggest hindrance to the true development of Third World countries.
Even as the MIF heist is yet to happen, the solons are cooking up a more sinister storm, the Overseas Filipino Workers Sovereign Wealth Fund, tapping the biggest dollar earner of the country.
This is “stealing” the hard-earned money of our workers. The OFWs may rise in protest.
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