Speaker Ferdinand Martin G. Romualdez on Sunday said the final implementing rules and regulations (IRR) governing the Maharlika Investment Corp. would protect the fund from the dangers of political interference.
“This move is a significant step towards enhancing corporate governance and ensuring that the Maharlika Investment Fund (MIF) is managed with the utmost transparency and accountability,” Romualdez said, as he praised President Marcos’ commitment to “strengthening the independence”’ of the MIC’s board of directors.
“The autonomy of the MIC Board allows for more objective and effective decision-making, free from undue political influence. This is crucial in overseeing a fund of this magnitude, which is pivotal to our nation’s economic growth,” Romualdez said.
“The final IRR, as introduced by the President, clarifies the board’s discretionary powers while ensuring adherence to the law and alignment with the nation’s socioeconomic development program,” he said.
Romualdez expressed confidence that the latest development will mean “a more robust and stable economy” where even ordinary Filipinos stand to benefit, as this will pave the way for “more job opportunities, improved public services, and a higher standard of living.”
“The MIF, if managed independently and efficiently, can significantly contribute to the nation’s socioeconomic development, aligning with the government’s broader goals,” he said.
The revised IRR gave the President authority to accept or reject nominees in the MIC board of directors and removed the specific advanced educational degree requirements for those who can be appointed to manage the country’s first sovereign wealth fund.
Under Section 39 of the previous IRR, the president and chief executive officer of the MIC “must have an advanced degree (MBA, MA, MSc, PhD) in Finance, Economic, Business Administration, or a related field from a reputable university. Additional professional certifications such as CFA or CPA are preferred.
These qualifications were removed from the revised IRR.
Stringent requirements for the chief investment and operating officer have also been eased.
Additional requirements for regular and independent directors of the MIC board were also deleted.
Monetary Board member and former national treasurer Rosalia de Leon defended the removal of certain qualification requirements for the officials of the MIC in the revised IRR.
“The reason for removing the qualifications in the IRR is to give more independence to the board in determining the specific qualifications of the other officers of the MIC in order to carry out its mandate to efficiently manage the MIF,” de Leon said.
“The President wants the board to be insulated from political influence and considerations and would like to give the leeway to set the qualifications in the best way they know how based on their experience and expertise in fund management,” she said.
Budget Secretary Amenah Pangandaman also welcomed the release of the revised IRR, saying they would give the MIC board the liberty and flexibility to fulfill its mandate, while improving accountability and openness.
The Maharlika Investment Corp. (MIC), which was created under Republic Act (RA) 11954, shall act as the sole vehicle for mobilizing and utilizing the MIF for investments in transactions to generate optimal returns on investments (ROI) while reinvigorating job creation and accelerating poverty reduction by sustaining the economy’s high growth trajectory.
“As a member of the Philippine economic team, I commit my full and unequivocal support for the smooth implementation of the MIF’s IRR, with trust and confidence that MIF’s managers will perform their duties and responsibilities to the best of their abilities for the good of the nation,” she said.
Albay Rep. Joey Salceda said the most important change in the IRR is that the President can now require the advisory body to submit additional names if he sees that to be necessary.
Considering that the nominees still have to pass all necessary qualifications set by the advisory body, he said that would actually widen the net “cast for appointees to lead the MIF.”
“That was almost the entire point of the revision,” Salceda added.
