MANILA (3rd UPDATE) — President Ferdinand Marcos, Jr. has suspended the implementation of the Maharlika Investment Fund, Malacañang said on Wednesday.

In a statement to reporters, Executive Secretary Lucas Bersamin said the President wanted a thorough study on the sovereign investment fund's implementation.

"He wanted to study carefully the [implementing rules and regulations] to ensure that the purpose of the fund will be realized for the country's development with safeguards in place for transparency and accountability," Bersamin said.

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An Oct. 12 Palace memorandum directed the heads of Bureau of Treasury, Land Bank of the Philippines, and the Development Bank of the Philippines (DBP) to suspend the implementation "pending further study thereof."

It also told them to "notify all concerned heads of departments, bureaus, offices and other agencies of the executive department, including [Government Owned and Controlled Corporation]s of such action."

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In a statement, the DBP confirmed receiving the memo and said it would comply.

"DBP shall strictly abide by the directive," it said.

Landbank meanwhile, said they already received the instruction from the Palace.

"At this point, we have nothing to add, nor do we feel it necessary to volunteer any preemptive speculation, as we also await further study of the IRR," Landbank said.

A former official of the Bangko Sentral ng Pilipinas meanwhile called on the government to return the money contributed to Maharlika by Landbank and the DBP.

The two state-run banks have contributed to the MIF, with an initial P50 billion and P25 billion infusion, respectively.

OSG TO STILL SEND COMMENT TO SC

Despite the developments, the Office of Solicitor General said it was still preparing its comments on the petition against the Maharlika Investment Fund law pending before the Supreme Court.

Solicitor General Menardo Guevarra said his office has yet to receive a copy of the resolution of the SC ordering parties to comment on the petition.

“We have not officially received a copy of the SC’s resolution, but we have been preparing our comment since the court’s resolution appeared on the SC website,” Guevarra said.

Guevarra said it was up to the petitioners if they wished to withdraw their petition.

“But if they don’t, and the SC does not suspend the proceedings either, the OSG will be prepared to submit its comment on the validity of the MIF law,” he said.

DON'T PANIC

House Ways and Means Committee Chair Joey Salceda said the public should not overthink Marcos Jr's suspension order which is "well within his power."

"The letter of the law will still be followed without exception. But the IRR should anticipate future issues. If he sees issues in the Executive branch’s IRR draft, he can resolve them," Salceda said.

"[It's] better to do so before full implementation. In any case, I will provide advice to the Executive branch on our legislative intent, as TWG (technical working group) Chair for drafting the measure," he added.

He said the government was still on track to get the ball rolling by the end of this year.

House Deputy Minority leader and ACT Teachers party-list Rep. France Castro said that the suspension showed that the measure was rushed and flawed on so "many levels."

"It would be better if Pres. Marcos Jr. just scrapped the whole Maharlika law rather than just suspend it as Bayan Muna executive vice-president Carlos Isagani Zarate said last week," she said.

The IRR mandated the Landbank and the DBP to contribute seed money for the Maharlika fund, which Castro said would put the banks' capitalization "in danger."

"Ito talaga ang hirap sa minadaling batas ng Maharlika fund kaya hindi gaanong naaral at mukhang lalo lang maglulugmok sa kahirapan dahil pera ng bayan ang nakataya at maging ang pinaghirapang ipon ng mga kliyente ng Landbank at DBP," she said.

Landbank and the DBP earlier sought relief from the capital requirements set by the BSP, but both banks remained compliant with regulations as of now, BSP Governor Eli Remolona said.

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— With reports from Adrian Ayalin and RG Cruz, ABS-CBN News