The Governance Commission for GOCCs, or GCG, has expressed concern that sourcing funds for the proposed sovereign wealth fund, Maharlika Investment Corp., from government-owned and controlled corporations (GOCCs) as well as from government financial institutions could affect their respective investment strategies and, consequently, their future financial performance.
GCG, the agency tasked by law to oversee, advise and monitor GOCCs to ensure they complement the government’s development goals, recently told a Senate hearing that the proposed MIC also bears the attributes of a GOCC such as its charter, functions relating to public needs, and state ownership.
The agency told the Senate that unless revised in the final version of the bill, such similarities with a GOCC could place the MIC under the purview of the GCG. This means, the future financial performance and investment strategies of the MIC could be scrutinized by the GCG.
As envisioned by its proponents, the MIC will be an independent corporation that would manage the proposed investment fund on its own.
Nonetheless, the GCG said it supports Congress and the lawmakers’ efforts to ensure the country’s economic transformation, growth and sustainability.
