THE Development Bank of the Philippines (DBP) views the proposed Maharlika Investment Fund (MIF) as a valuable source of long-term capital for developing infrastructure.
In a statement, the bank’s President and Chief Executive Officer Emmanuel G. Herbosa said such investment will be critical for food, water, green energy, agro-industrial ventures, telecommunications, public infrastructure, and road networks projects.
“From my personal standpoint, the creation of a SWF (sovereign wealth fund) is a superb opportunity to address the dearth in sources of long-term capital which is integral to support these capital-intensive investments,” Mr. Herbosa said.
“As head of a government bank, the SWF is closely aligned with our operating principle of bolstering (the economy) through timely and meaningful support for critical industries and sectors,” he added.
The House of Representatives last week approved on third and final reading the Maharlika Investment Fund (MIF) bill, with 279 votes for, or about 90% of the chamber.
According to Mr. Herbosa, the additional safeguards in the proposed measure will ensure that the fund is not misused, employed fraudulently, and shielded from political interference.
In the bill’s latest version, the number of independent directors has been raised to four, congressional oversight and multiple layers of audit have been included, with stiff penalties prescribed for any misconduct by fund officials.
Mr. Herbosa said that the provision of sovereign guarantees for specific contributions adds another layer of confidence especially in funding projects while also attracting private sector and international funders.
“At this juncture it’s best that we allow the bill to take its proper course in the legislative mill as I believe this would lead to a solid and watertight law in view of the purification and purging process that it underwent,” he added.
The Government Service Insurance System and Social Security System were initially proposed as Maharlika funders, but were ruled out after a backlash. — Keisha B. Ta-asan