The Department of Finance, or DoF, on Tuesday announced the implementing rules and regulations of the Maharlika Investment Fund or MIF will be effective starting on 12 September as the government opens its search for the fund’s board directors.
Finance Secretary Benjamin Diokno said the government is looking for candidates for president and CEO of the Maharlika Investment Corp., two regular directors, and three independent directors.
“The success of the implementation of the MIF hinges on selection of the best people to oversee and manage the Fund and strict compliance with the provisions of the law. This is why we made sure to include all possible safeguards in the implementing rules and regulations or IRR, ensuring that all our bases are covered,” Diokno said.
They will be working with the Secretary of Finance as ex officio chairperson, presidents and chief executive officers of the Land Bank of the Philippines, or LandBank and Development Bank of the Philippines, or DBP, as other members of the MIF Board.
Investments detail listed
The IRR allows MIF to be invested in various instruments, including cash and other tradable commodities, fixed income instruments issued by states, domestic and foreign corporate bonds, listed or unlisted equities, and Islamic investments.
Diokno said proceeds from these investments will be used to build transportation infrastructure, energy and water facilities, agro-industrial ventures, telecommunications and climate change mitigation projects, among others.
“The MIF can also be used for green and blue projects, countryside development, and emerging megatrends such as environment, social, and governance projects and cutting-edge technologies,” he added.
With careful analyses of possible returns from investments, Diokno said the MIF can augment government funds to realize these projects.
“The MIF will serve as a crucial financing mechanism to widen fiscal space, ease the burden on local funds, and reduce reliance on official development assistance in funding big-ticket projects,” he said.
For officers deviating from the fund’s principles and mechanisms.
The MIF’s IRR imposes fines ranging from P1 million to P15 million and imprisonment from six to 20 years. Violations include willful holding of office while in possession of any disqualification; knowingly certifying the corporation’s financial statements despite its gross incompleteness or inaccuracy; willingly allowing oneself to be used for fraud; and failure to sanction, report, or file appropriate action for graft and corrupt practices.
Capital contributors to the MIF include the BSP, Philippine Amusement and Gaming Corporation, aside from LandBank and DBP.
Other capital sources are partial revenues from gaming operations of other government-owned gaming operators/regulators; government assets and proceeds from privatization of government assets; and other sources such as royalties and/or special assessments.