MANILA (UPDATE) - National Treasurer Rosalia de Leon and Finance Secretary Benjamin Diokno said that while the Social Security System (SSS) and the Government Service Insurance System (GSIS) are prohibited from investing in the Maharlika Investment Corporation (MIC), they can still invest in its projects.
This comes as critics of Maharlika said if the sovereign wealth fund loses money, the pensions of Filipino will be affected.
Speaking at a media briefing in Manila, De Leon said SSS and GSIS cannot invest or subscribe even in bonds. “Bawal directly and indirectly,” said the National Treasurer.
But De Leon and Diokno also clarified that SSS and GSIS may invest in the project level, but not in the MIC itself.
“Gusto mag-subscribe, mag-invest ng GSIS businesses in that project, they can do it…Sa project, not equity," De Leon said.
Both officials say the investment fund can help the economy and there will be a risk management unit to determine where the money will be invested.
They said MIC can also form a joint venture with conglomerates for big-ticket Public Private Partnership projects as well.
“Maharlika could be able to co-invest, maybe not in such a significant way dahil maliit pa lang ang kapital. But also the very fact na nandoon din si Maharlika, it means it is a seal of good governance given very transparent and accountability measures that’s already in the fund,” De Leon said on Maharlika’s co-investment opportunity with PPP projects.
Diokno, who will become the head of MIC as Secretary of Finance, said they will check all possible investment projects- big or small. They will also work on developmental projects that could have a high return.
“Mag invest sa stock market, mag invest sa short term bonds. May allocation talaga Ito. Pang long term, short term lang siguro high risk pero high return. Ang mag dedetermine noon Risk Management Committee,” said Diokno.
Among the additional sources of fund for Maharlika will be proceeds from the disposition of assets by the Privatization Management Office (PMO). P2.5 billion pesos of government properties are lined up to be sold this year, with around P152 million worth of assets just approved for sale last May 31, 2023.
Among the biggest in the pipeline are the P485 million Elorde Sports and Tourism Development Corporation, P368 million Emmanuel Community Hospital parcels of land, among other real estate properties.