1MDB scandal will not happen with Maharlika fund - solon

Davinci Maru, ABS-CBN News

Posted at Dec 02 2022 01:24 PM

Watch more on iWantTFC

MANILA — A lawmaker on Friday assured the public that safeguards would be put in place to prevent a possible misuse of the proposed sovereign wealth fund dubbed as Maharlika Investment Fund.

According to Albay 2nd District Rep. Joey Salceda, the MIF will not go the way of Malaysia’s 1Malaysia Development Berhad corruption scandal.

"Hinding-hindi mangyayari 'yun dito," he told ANC's "Headstart".

"I think there are enough safeguards against any 1MDB scenario for the Maharlika Investment Fund," he added.

The House Committee on Banks and Financial Intermediaries on Thursday approved the proposed bill creating the MIF.

State-run sovereign wealth fund taps international investments for bigger returns.

Salceda said lawmakers had introduced 4 layers of good corporate governance to the IMF — board of directors, advisory body, risk management unit, and the congressional oversight committee.

He said Malaysia's failed 1MDB had a different structure.

"Naka-layer ng naka-layer na hindi napansin. Nagising nalang sila ang laki-laki na pala nung [nawala], at saka 'yung 1MDB was able to invest in accounts that appeared legitimate that were actually personal accounts of government officials of Malaysia," Salceda said.

In its current form, the proposed fund will be managed by the Maharlika Wealth Fund Corporation.

The MIF will get allocations from the following government financial institutions:

  • P125 billion from Government Service Insurance System
  • P50 billion from Social Security System
  • P50 billion from Land Bank of the Philippines
  • P25 billion from the Development Bank of the Philippines 
  • P25 billion from the National Treasury

"Investments in sovereign wealth fund will be guaranteed by the national government. Therefore, it has potential to earn but it has no risk," Salceda said.

Relatives of President Ferdinand Marcos Jr. in Congress proposed the bill. Marcos will be the chairperson of the government corporation.

Finance Secretary Benjamin Diokno earlier said he supports the proposed measure. He added the country has the money to back the fund.