President Marcos stalls push to implement Maharlika Fund

President Ferdinand Marcos Jr. stalled the rapid push to bring to life the Maharlika Investment Fund, seeking more time to review the details of the implementing rules and regulations, or IRR, to ensure safeguards are in place.

Executive Secretary Lucas Bersamin wrote to the National Treasury, Land Bank of the Philippines and Development Bank of the Philippines, informing them of the president’s decision “to suspend the implementation of the IRR” of the Maharlika Investment Fund Act “pending further study thereof.” He didn’t specify which provisions of the IRR had triggered the suspension order.

Bersamin said the treasury and these banks should also notify heads of departments, bureaus, offices and other agencies, including government-owned and -controlled corporations of the decision of the president.

The Maharlika Investment Corp., the corporate vehicle that will carry out the MIF investment goal, will have an authorized capital of P500 billion which will be subscribed by the National Government, its agencies, government financial institutions, and GOCCs.

Senate Minority Leader Aquilino Pimental lauded the order of President Marcos to stall the implementation of the controversial MIF. He noted the law has a lot of defects that needs to be corrected. “Good that the Marcos administration appears to listed to reason,” he said.

Albay Rep. Joey Salceda, the lawmaker who stewarded the passage of the Maharlika Investment Fund through Congress, said in a statement that the decision of President Marcos was well within his powers and doesn’t mean the end of the MIF. “If he sees issues in the Executive branch’s IRR draft, he can resolve them. Better to do so before full implementation,” he said.

Even with the apparent hurdle to the fund’s immediate implementation, Salceda said: “We are still on track to get the ball rolling by the end of the this year. With the PPP (Public Private Partnership) Code to be enacted this year, I also expect direct investments in development projects in 2024.”

Former president and Pampanga Rep. Gloria Macapagal-Arroyo said everyone in government should support the decision of President Marcos to temporarily stop the implementation of the MIF. “The president must have his reasons. And I trust his instinct on this. There is nothing to lose if we support the president on the suspension as he deems appropriate,” she told reporters.