A SENATOR on Tuesday emphasized the strict prohibition of government pension and insurance funds from participating in the proposed Maharlika Investment Fund (MIF), saying this was the intent of the bill approved by Congress.
Finance Secretary Benjamin E. Diokno said last week that pension funds may invest in projects bankrolled by the MIF.
“It is clear: the Senate’s version of the bill, which was later on adopted, orders the absolute prohibition of the use of funds of the GSIS (Government Service Insurance System), Social Security System (SSS), PhilHealth (Philippine Health Insurance Corp.), and other insurance and pension institutions,” Senator Ana Theresia “Risa” N. Hontiveros-Baraquel said in a statement.
“What Congress intended should be the standard for how the law is implemented. The Executive is not allowed to change, expand or limit it based on its own interpretation,” she said.
Senate Majority Leader Joel J. Villanueva also said yesterday that “there is no room for interpretation regarding this prohibition.”
“We trust that the IRR (Implementing Rules and Regulations) will be faithful to the bill that we passed and to the numerous manifestations and statements of support from this representation and our colleagues on this issue,” he said.
Under the approved Senate Bill No. 2020, which was adopted by the House of Representatives, government pension and insurance funds are prohibited from contributing to the seed capital for the fund.
Initial capital for the MIF will come from the National Government, which will inject P50 billion, and two state-owned banks: Land Bank of the Philippines (LANDBANK), P50 billion; and the Development Bank of the Philippines (DBP), P25 billion.
Mr. Marcos last week said pension funds cannot contribute to the sovereign wealth fund, but added that “it’s up to them if they want to invest in it,” he said.
Ms. Hontiveros said the Senate will “exercise its oversight function to ensure that these safeguards for the protection of pensioners’ and contributors’ hard-earned money are enforced”. — Beatriz Marie D. Cruz